The top executive of one of Pennsylvania’s largest natural gas producers said artificial intelligence and data should better guide the country’s energy policy in favor of natural gas, including allowing the energy-starved New England states to have access to more natural gas pipelines.
Thomas Jorden, chairman and CEO of Coterra Energy (NYSE: CTRA), told the Marcellus Shale Coalition’s Shale Insight gathering in Erie on Wednesday that bad public policy wasn’t having the desired effects on climate. He cited a recently published Science magazine review of 1,500 climate policies established worldwide between 1998 and 2022 that found only 63 were successful and led to less than a 1.8 billion metric ton reduction in total carbon emissions. Earth’s total carbon emissions continue to climb and rose 1% in 2023 to 37.4 billion tons a year, according to the International Energy Agency.
“Public policy is not having the effect it’s designed to have,” Jorden said.
He urged a data-driven approach using the latest artificial intelligence advances to find new and unexpected ways to make a bigger difference, optimizing for a country-by-country approach at emissions reductions.
“At Coterra, we put a lot of energy into machine learning over the last six or so years,” Jorden said. “We’ve had a lot of false starts, but we’ve really gained tremendous traction toward changing every element of our business.” Coterra is the combination of Cabot Oil and Gas Corp. and Cimarex, which occurred in 2021.
He noted that New England states, other than Vermont, get about 50% of electricity from natural gas, but Coterra and others are prevented from building a pipeline from Pennsylvania that would allow more natural gas to flow more easily and more cheaply.
“We’re unable to do that so I would call that a questionable energy policy,” Jorden said.
Other speakers at this year’s Shale Insight, which is aimed at and for natural gas producers and the companies who serve the industry, also promoted the use of natural gas. CNX Resources Corp. (NYSE: CNX) told others in the industry that it needed to rededicate itself to a more transparent measure of air and water emissions in drilling and hydraulic fracturing. CNX in November 2023 forged a cooperative agreement with the Commonwealth of Pennsylvania and Gov. Josh Shapiro over extensive air and water monitoring.
Another driller, privately held Encino Energy, also highlighted work toward environmental and operational improvements and cited its success in the primarily oil-rich play of the Utica Shale in Ohio as an example. Ray Walker, COO of Encino Energy and one of the pioneers of the Marcellus Shale when he was with Range Resources Corp., implored his fellow drillers to continue to improve environmental and sustainability performance. That would become even clearer as the country understands that it needs the natural gas that is produced.
“We have to maintain our license to operate, and I know people don’t like it when I say that term, but that is the truth,” Walker said. “You’re licensed to operate. These people have to believe in what you’re doing.”
Jeff Kotula, president of the Washington County Chamber of Commerce, said the Marcellus Shale provides a bedrock of national security and an affordable energy source in Washington County and beyond.
“We must impress upon the public and its national leaders the importance of allowing energy production and producers to do what they do best, supply our country with clean-burning American natural gas, which is produced under the strictest environmental standards in the world and continues to innovate,” he said.
