West Virginia Executive Spring 2019 | Page 41

Inside the Industry Energy & Manufacturing COMPILED BY JENNIFER JETT PREZKOP There is no doubt about it: this is an exciting time for the energy and manufacturing industries in West Virginia. Ad- vances in technology and the exploration of new opportunities have marked the beginning of a new chapter for the businesses that extract fossil fuels or manufacture everyday goods used around the world. The possibilities for job creation, economic growth and exporting success within the natural gas industry alone are endless. Manufacturing is seeing a resurgence that, if capitalized on, can breathe new life into the Mountain State’s economy. Even the coal industry is seeing an upswing as it reinvents itself to capture new market shares. These opportunities do not come without challenges. Over- coming legal delays on pipeline infrastructure projects and addressing climate change concerns and qualified workforce Anne Blankenship Executive Director, West Virginia Oil and Natural Gas Association WVE: Give us an update on what has happened in your industry over the last year. AB: The oil and natural gas industry continues to grow in West Virginia, which means more taxes paid back to the state and local communities, more jobs created and a continued eco- nomic boom for West Virginia. Although production continues to increase, much-needed pipeline projects have been stalled over the past year by legal challenges brought by anti-fossil fuel activists. These lawsuits are prohibiting West Virginia from reaching its full potential by prolonging the construction and ultimate operation of this infrastructure. In order for us to use natural gas, we must have pipelines in place to get it where it needs to be. Stalling these pipelines only stalls progress in West Virginia, including the creation of thousands of jobs and the collection of property taxes in the counties where the pipelines are located. These projects need the support of our state, our leaders and our lawmakers. WVE: Tell us about how the 2019 legislative session impacted your industry. shortages, as well as the ability to compete on even ground with surrounding states, are just a few of the obstacles these industries are facing. To learn more about these challenges and what the state is doing to help these industries reach their full potential, West Virginia Executive magazine sat down with the leadership of the four professional associations representing coal, natural gas and manufacturing in the Mountain State. Editor’s Note: After these Q&As were completed, Gov- ernor Jim Justice vetoed HB 2673, which pertains to the natural gas industry. AB: This year, we focused on updating existing laws that have been in place for decades for deep wells. With horizontal drilling, deep wells can be drilled more efficiently and with less land disturbance, but the spacing requirements for deep wells were promulgated more than 30 years ago for vertically drilled wells and do not make sense for new drilling technol- ogy. House Bill (HB) 2834 would have updated those spacing requirements, but we did not get support from the Senate to pass the bill. We are hopeful that regulatory changes over the next year can be made quickly to update the requirements appropriately. We were also supportive of legislation to reduce permit timelines, but that was also unsuccessful this year. WVE: How do you think the latest calls for action against climate change will impact your industry? AB: Interestingly, as natural gas production has increased, methane emissions have decreased. Nationally, natural gas production has increased by 6 percent, yet methane emissions have decreased by 8 percent. This is due to the use of natural gas to generate electricity. In fact, according to the International Energy Agency, in the last 10 years, emissions reductions in the U.S.—almost 800 million tons—have been the largest in the history of energy, and the U.S. is leading the world in CO 2 reductions because of natural gas. Increased momentum in West Virginia for using natural gas to make electricity will help continue this trend, among other benefits. WWW.WVEXECUTIVE.COM SPRING 2019 39