Hillsdale College economics professor Gary Wolfram Energy Industry consultant ET Rover Pipeline

Toledo Blade
GUEST COMMENTARY
Rover pipeline will help Ohio benefit from energy surge

Gary Wolfram is William E. Simon professor of economics at Hillsdale College and the president of Hillsdale Policy Group, a consulting firm that specializes in taxation and policy analysis. He has done consulting work on the Rover pipeline project.
Read more at http://www.toledoblade.com/Op-Ed-Columns/2015/01/08/Rover-pipeline-will-...

Dr Gary L Wolfram:
Dr. Gary L. Wolfram, an adjunct scholar at the Mackinac Center for Public Policy, is the George Munson Professor of political economy at Hillsdale College in Hillsdale, Michigan, and president of the Hillsdale Policy Group, a consulting firm specializing in taxation and public policy analysis. He is the author of A Capitalist Manifesto: Understanding the Market Economy and Defending Liberty (2012).
http://www.mackinac.org/bio.aspx?ID=46

On 1/13/2015, the Federal Energy Regulatory Commission (FERC), Washington D.C., issued this document:

Docket(s): PF14-14-000
Lead Applicant: Rover Pipeline LLC
Filing Type: Conference/Meeting Transcript
Description: Transcript of the 12/10/14 meeting held in Richmond, Michigan re the Rover Pipeline Project under PF14-14.

To view the document for this Issuance, click here
http://elibrary.FERC.gov/idmws/file_list.asp?accession_num=20150113-4009

Comments on page 25

18 MS. MARDINEY: Next speaker is Gary Wolfram.

19 MR. WOLFRAM: Hi. I would also like to say I

20 appreciate you having these hearings for people to speak for

21 and against this, or medium with this pipeline issue. My

22 name is Gary Wolfram W-O-L-F-R-A-M.

23 The Rover Pipeline is important for both Michigan

24 and the United States. The use of horizontal drilling has

25 made the U.S. the largest producer of natural gas in the

26

1 world with only Russia producing within 25 percent of what

2 we do produce. The U.S. Energy Information Agency is

3 estimating that the U.S. production is going to increase by

4 44 percent by 2040. An infrastructure is needed to

5 transport natural gas. The Michigan House Subcommittee on

6 Natural Gas in April 2012 concluded that quote, "New gas

7 pipelines would be needed in Michigan to receive larger

8 volumes of natural gas so as to not bottleneck flow and to

9 minimize pipeline transportation costs."

10 This will become even more necessary if the

11 recent agreement with China for the United States to reduce

12 its greenhouse gases 26 percent below the 2005 emissions

13 within the next ten years is ratified. Natural gas produces

14 about half the amount of CO2 emissions per million BTU of

15 energy as coal, and this means there is going to be a

16 greater increased demand for natural gas to replace coal.

17 Combined-cycle natural gas power-plants yield

18 heat efficiencies of 60 percent or more compared with

19 nuclear at 35 percent and coal at 40 percent. This is all

20 particularly important in Michigan, as currently about 55

21 percent of all our electricity generation comes from coal.

22 There will likely be over time a movement away from

23 coal-fired power-plants to natural gas, and this will be a

24 substantial increase in the demand for natural gas. It is

25 also possible that natural gas vehicles may become

27

1 economically viable, which will result in demand for

2 refueling stations that may reach critical mass.

3 As the pipeline is going to last for decades,

4 development of this infrastructure will allow for incentives

5 to create new ways to use of natural gas, further reducing

6 energy cost and adding to economic activity. Pipelines are

7 the safest way to transport natural gas, and currently,

8 there are over 300,000 miles of natural gas pipelines in the

9 United States.

10 Natural gas is used in a variety of ways. It is

11 an essential fuel and raw material in many manufactured

12 products. About 98 percent of manufactured goods require

13 some natural gas in the manufacturing process. It is used

14 for heating, cooling, waste treatment and processing and as

15 a raw material in the manufacturing of chemicals, plastics,

16 fertilizers, pharmaceuticals and other products.

17 As an example of the benefit of this, a plastics

18 producer would get a double benefit; they would have cheaper

19 feed stock gas, which is the raw material for their product

20 and lower electricity costs. The Rover Pipeline will allow

21 for the efficient transportation of natural gas throughout

22 the Midwest and Canada and in particular Michigan; and as

23 with any product, its efficient use, an economy depends on

24 the ability to transport it. It has got to be moved from

25 areas where it is produced to the areas where it is going to

28

1 be consumed. The interstate highway system was an example

2 of attempts to do this and has been quite successful in

3 reducing transportation costs of goods and services

4 throughout the country. Years ago, natural gas was flared

5 at the well heads because there was no way to get it to

6 market.

7 The Rover Pipeline will be an investment of over

8 4 billion dollars and create approximately 10,000 temporary

9 construction jobs which about 3,000 of these would be in

10 Michigan. These workers then would generate economic

11 activity as well by buying things in restaurants, heating,

12 renting spaces to live, entertainment, etc. The pipeline

13 would produce a right-of-way payment to landholders and

14 generate tax revenues for the State of Michigan and for

15 local units of government.

16 In summary, the Rover Pipeline will be a

17 significant factor in improving Michigan's economy and

18 environment.

19 Thank you.

20 AUDIENCE: I'm sorry, sir. Who is it you are

21 affiliated with?

22 MR. WOLFRAM: I am an economist and I have a

23 consulting firm named Hiltop Housinger.

24 AUDIENCE: Do you live in Michigan?

25 MS. HARRIS: Excuse me, would you not speak out?

29

1 MR. WOLFRAM: Yeah, it took me three hours to

2 drive here.

3 AUDIENCE: Then why did you come?

4 MS. HARRIS: Could you not speak out? If you do

5 want to speak would you please sign up on the speakers list

6 so we can get to the next person on the list and make sure

7 people who did sign up do have their opportunity. Thank

8 you.

9 AUDIENCE: Excuse me, I have a procedural

10 question. That gentleman was at the Flint meeting last

11 night. Why is he here again talking? He doesn't live here.

12 What's he got to do with the environment?

13 MS. HARRIS: This is an open forum where we are

14 giving everyone an opportunity to comment. FERC did come

15 all of this way to hear from every single one of you who

16 signed up to speak, so please just give the speakers the

17 opportunity to speak and respect their opinion. It is not

18 necessarily a vote of whether you agree or not. We just

19 want to hear everyone's comments and get them in the record.

20 Thank you.

No votes yet