Monday, September 16, 2013

Just a Thought

I've got similar model - It was my Great Grandfather's.
Mine has a fancier handle

U.S. Overstates Leaks by Gas-Drillers, Says Study

This WSJ story covers a study that was supported by a cross-incentivized team. Cross funded studies are good because you get a result which isn't completely one-sided. Here's my thought though. Why the hell are we worried about natural gas leakage when the people drilling have a clear incentive to not have leaks in the first place? I would think they're doing everything they can to minimize leakage because they have a profit motive to do so. Leaks = less gas to sell. What's not to understand? Now hey... I realize it's not that simple... Maybe you can cheat a corner and build a rig that gets 95% of the gas and costs X. Maybe the rig that gets 99% of the gas costs twice as much. I could see how you'd have to use regulation to keep the drillers in line. At the same time I think drillers know what they're doing and we have to give them some breathing room to develop their technology. Let them leak 4% a year for the next few and see if they get down to 3% or 2% leakage rates on their own. If I were head of the EPA I'd stand off, wait, see and learn. If the drillers don't cut down on emissions you regulate - if they do you don't. Just a thought.  

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