8. NATURAL GAS

In the short term, flaring percentages are expected to again rise above current levels in shale-producing states such as Texas and North Dakota. Because of the economic benefits of increased crude oil production, state regulators are reluctant to curtail flaring by limiting oil production until takeaway capacity can catch up.

In states where a large number of associated gas flares have been permitted, a combination of regulatory action and planned increases in natural gas processing and pipeline takeaway capacity appear to be on track to reduce the immediate flaring problem gradually over the next two to five years.

Gas emergency response

Gas emergency policy

There are two primary statutory authorities for addressing a natural gas emergency. First, under the Natural Gas Policy Act of 1978 (NGPA), the US president is authorised to declare a natural gas supply emergency if:

•“[A] severe natural gas shortage, endangering the supply of natural gas for highpriority uses, exists or is imminent in the United States; and”

•“[T]he exercise of authorities…is reasonably necessary, having exhausted other alternatives to the maximum extent practicable, to assist in meeting natural gas requirements for such high-priority uses.”

The emergency provisions under the NGPA include emergency purchase and emergency allocation authorities.

The other legislation relevant to natural gas emergencies is the NGA, as amended. The DOE is authorised by Section 3 of the NGA to issue supplemental orders that modify or withdraw prior authorisations to export natural gas if it is determined that they are not consistent with the public interest. The DOE is also authorised by Section 16 of the NGA to “perform any and all acts and to prescribe, issue, make, amend, and rescind such orders, rules, and regulations as it may find necessary or appropriate” to carry out its responsibilities. The DOE has never before rescinded a long-term export authorisation for any reason. Further, the department has no record of ever having vacated or rescinded an authorisation to import or export natural gas over the objections of the authorisation holder. The DOE has published a policy statement affirming its commitment to all export authorisations issued under the NGA.

Gas emergency organisation: Roles and responsibilities

The DOE has two important programmes that deal with emergency preparedness and resilience:

Emergency Support Function 12 (ESF-12): ESFs are mechanisms for grouping functions most frequently used to organise the federal response to declared disasters and emergencies; ESF-12 is dedicated to energy. The DOE’s Office of Cybersecurity, Energy Security, and Emergency Response is responsible for fulfilling the ESF-12 role.

US State Energy Program (SEP): For 30 years, the US SEP, established by Congress in 1989, provides financial resources directly to the states. SEP provides complete discretion and deference to the nation's governors in the use of SEP funds within a broad statutory

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