It’s Colorado Energy’s Time to Lead: Let’s not Screw it Up

By Dirk McDermott

Colorado has a great opportunity to lead the nation in bridging the ‘clean vs. dirty’ energy debate. As a state we are blessed with rich traditional energy reserves, abundant renewable resources, and world class technical institutions. We have a culture steeped in the oil and gas business, yet one that has embraced the evolution towards a more sustainable future. Additionally, this New Year has provided us with a shifting political landscape, and an opportunity in which we can craft an broad energy policy encompassing all segments of the energy industry. At Altira Group, we believe 2010 can bring a significant change to Colorado energy. Our state can help lead the country in developing thoughtful, balanced energy policies that work towards ending the “either-or” debate and embrace both traditional and renewable energy development. We are optimistic that we can balance the needs of the environment with the need to rebuild prosperity. Coming off one of the most volatile years in the energy industry, we enter 2010 with energy
prices that have rebounded to levels high enough to allow for renewed energy development, yet low enough to accelerate the broader economic recovery. Across energy sectors, we feel we have seen the lows, and we are entering 2010 with renewed momentum.

New technology has unlocked vast new reserves of natural gas which can fuel this country for more than 100 years, ushering in a renaissance for this energy source. The Rocky Mountain region has played a key role in this renaissance, already producing on par with the Gulf of Mexico, and will continue to play an important role in producing and exporting this extremely clean and plentiful source of energy. But, we have challenges. The vast majority of Rocky Mountain produced gas is exported outside of the region via pipelines, which have been expanded, but are at capacity. These capacity constraints ’strand’ Colorado gas from the broader U.S. market, creating local oversupply resulting in much lower prices to our state’s producers. The Rockies Express Pipeline is one of the foundational pieces to help connect Colorado to the broader market and additional lines, Ruby and Bison, need quick approval. These lines, together with policies which can streamline upstream exploration and production efforts will unlock profits, state revenues, and jobs for Colorado and the region, Some other actions should be taken to help Colorado lead the energy industry in 2010, including consideration of an increase in the Severance Tax Act with the proceeds being directed to education. We need to continue to fund equity investment in the “clean tech” area, but we must also pay for it responsibly. Colorado is in the best position to combine traditional and renewable energy segments in one “all energy” policy, which is critical for our national economy.

Finally, let’s bring some common sense to this discussion. No one wants to live in a world of more pollution, unsightly transmission lines, oil derricks or wind turbines blighting pristine vistas. However, we will need to make intelligent infrastructure choices to enable our energy future. The issue is not “Clean versus Dirty”, it is sustainability. How do we make what we have last longer, be cleaner, become more efficient, have it cost less, and solve our energy needs by helping meet global energy demands today?
At Altira Group, those are the questions we ask and find solutions for everyday.

Dirk McDermott is Chief Executive Officer of Altira Group, LLC, a Denver-based organization founded in 1996 to invest in the energy technology sector. The company focuses on growth technology companies spanning the energy value chain, from source to resource, and takes an active lead investment role with extensive follow-on capabilities. Altira Group, LLC has closed more than $300 million in active, hands-on investments.

Article printed from Colorado Energy News: http://coloradoenergynews.com URL to article: http://coloradoenergynews.com/2010/01/my-view-its-coloradoenergys-time-to-lead-lets-not-screw-it-up/ URLs in this post: Altira Group: http://www.altiragroup.com/
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