State of America Series - U.S. Energy Distribution - Not a Sustainable Model

Friday, June 13, 2014

The AMCHAM Canada "State of America" Series:  A series of articles and commentary on issues related to the state of economic, political and business affairs in the United States  

Contributors: Adam Daifallah - Stephen Kelly - John Parisella - Élisabeth Vallet - Tom Velk
Number 5 - June 3, 2014

U.S. Energy Distribution - Not a Sustainable Model by Stephen R. Kelly

North America is bursting at the seams in energy, but it has an increasingly hard time moving that energy to where it is needed. The U.S. is awash in natural gas from newly exploited shale deposits, but New Englanders paid record prices for gas this past winter because of inadequate pipeline capacity. The Province of Quebec has boosted its installed capacity of clean hydroelectric power, but getting it to U.S. markets requires a new transmission line across New Hampshire that some environmentalists oppose. Oil production in Canada and North Dakota is surging, but much of it is stuck in the glut-prone center of the U.S., again due to inadequate pipeline capacity. Increasingly, oil producers are resorting to trains to move their product, with derailments and fires like those that occurred last year in Lac-Mégantic and in April in Lynchburg, Virginia, the unfortunate consequences. It is not a sustainable model. Click here to view the full article..

Stephen R. Kelly

Stephen R. Kelly is Associate Director of the Center for Canadian Studies at Duke University, where he teaches courses on energy security and border issues. He served 28 years in the U.S. Foreign Service, including postings as Deputy Chief of Mission at the U.S. Embassies in Ottawa and Mexico City, and U.S. Consul General in Quebec City. He has published articles on border, energy and Canadian issues in the New York Times, the Wall Street Journal, the Toronto Globe and Mail , and the Chicago Tribune.