Archive for the ‘Oil and gas’ Category

Another major study points to questions about whether natural gas offers greenhouse benefits

Thursday, February 9, 2012

There’s a major new study out this week that provides more evidence to support questions about whether natural gas is really better than coal in terms of reducing greenhouse gas emissions and dealing with the climate crisis.

I first saw a report of the study on Joe Romm’s excellent Climate Progress blog. Joe is calling this a “bombshell study,” and he explains:

How much methane leaks during the entire lifecycle of unconventional gas has emerged as a key question in the fracking debate.  Natural gas is mostly methane (CH4).  And methane is a far more potent greenhouse gas than (CO2), which is released when any hydrocarbon, like natural gas, is burned.

Even without a high-leakage rate for shale gas, we know that “Absent a Serious Price for Global Warming Pollution, Natural Gas Is A Bridge To Nowhere.”

But the leakage rate does matter.  A major 2011 study by Tom Wigley of the Center for Atmospheric Research (NCAR) concluded:

The most important result, however, in accord with the above authors, is that, unless leakage rates for new methane can be kept below 2%, substituting gas for coal is not an effective means for reducing the magnitude of future climate change.

Now, as the journal Nature reports, we finally have some actual air sampling measurements, and they appear to confirm the higher estimates put forward by Cornell professor Robert Howarth:

When US government scientists began sampling the air from a tower north of Denver, Colorado, they expected urban smog — but not strong whiffs of what looked like natural gas. They eventually linked the mysterious pollution to a nearby natural-gas field, and their investigation has now produced the first hard evidence that the cleanest-burning fossil fuel might not be much better than coal when it comes to climate change.

Led by researchers at the National Oceanic and Atmospheric Administration (NOAA) and the University of Colorado, Boulder, the study estimates that natural-gas producers in an area known as the Denver-Julesburg Basin are losing about 4% of their gas to the atmosphere — not including additional losses in the pipeline and distribution system. This is more than double the official inventory, but roughly in line with estimates made in 2011 that have been challenged by industry. And because methane is some 25 times more efficient than carbon dioxide at trapping heat in the atmosphere, releases of that magnitude could effectively offset the environmental edge that natural gas is said to enjoy over other fossil fuels.

Methane is 25 times  more efficient than CO2 trapping heat over 100 year — but it is 100 times more efficient than CO2 trapping heat over two decades.

 

“If we want natural gas to be the cleanest fossil fuel source, methane emissions have to be reduced,” says Gabrielle Pétron, an atmospheric scientist at NOAA and at the University of Colorado in Boulder, and first author on the study, currently in press at the Journal of Geophysical Research. Emissions will vary depending on the site, but Pétron sees no reason to think that this particular basin is unique. “I think we seriously need to look at natural-gas operations on the national scale.”

Center: W.Va. ‘cracker’ tax break worth $300 million

Friday, February 3, 2012

The good folks at the West Virginia Center for Budget and Policy have a fascinating report out this morning that examines the potential costs – in revenues lost to local governments and school systems — because of the Legislature’s big rush to pass Gov. Earl Ray Tomblin’s tax break to try to lure a natural gas “cracker” plant to our state.

The bottom line?

Over the course of 25 years the facility will have paid $32.6 million with the tax incentive in place, compared to $335.8 million under a normal assessment. The amount of revenue forgone over 25 years totals $303.9 million, an average of approximately $12.1 million per year.

In an “Issue Brief”, the center’s Sean O’Leary dissects H.B. 4086, with a special emphasis on examining the Legislature’s “fiscal note” about potential costs of the governor’s tax break legislation. Incredibly, the fiscal note projected the costs of the legislation at $0 — that’s right, nothing. But O’Leary explains:

… There are several problems with the reasoning behind the $0 fiscal impact, and it is likely that there will be a significant fiscal impact if a facility is built, and takes advantage of the tax incentive.

He continues:

While legislators debated and ultimately passed H.B. 4086, the fiscal note, which informed them that there would be no fiscal impact, did not include:

– An estimate of the revenue forgone

–  An estimate of the costs of increases in demand for government services

– A model to estimate the economic impact and corresponding increases in revenue

– An explanation for how state revenue increases offset forgone local revenue

The fiscal note also assumes that a cracker facility would not locate in West Virginia without the tax incentive, due to the state’s uncompetitive property taxes. This assumption relies on misconception about the state’s property tax system and ignores many factors more influential to business location decisions.

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Word play: Gas industry protests use of ‘F word’, but its PR machine takes advantage of focus on ‘fracking’

Friday, January 27, 2012

In this Jan. 23, 2012 file photo, Gillie Waddington of Enfield, N.Y., raises a fist during rally against hydraulic fracturing of natural gas wells at the Legislative Office Building in Albany, N.Y. President Barack Obama the f- word during his recent State of the Union speech nor did he mention the technology used to get it, known commonly as fracking. That’s because the word has become a lightning rod.  (AP Photo/Mike Groll, File)

Well, The Associated Press spent 888 words toying with whether the use of one word — ‘fracking’ was appropriate when the media covers the continuing controversies over natural gas drilling.  The thrust of the story is that industry is upset with the phrase, and blamed environmental activists for the media’s continued use of it:

The word is “fracking” — as in hydraulic fracturing, a technique long used by the oil and gas industry to free oil and gas from rock.

It’s not in the dictionary, the industry hates it, and President Barack Obama didn’t use it in his State of the Union speech — even as he praised federal subsidies for it.

The word sounds nasty, and environmental advocates have been able to use it to generate opposition — and revulsion — to what they say is a nasty process that threatens water supplies.

“It obviously calls to mind other less socially polite terms, and folks have been able to take advantage of that,” said Kate Sinding, a senior attorney at the Natural Resources Defense Council who works on drilling issues.

One of the chants at an anti-drilling rally in Albany earlier this month was “No fracking way!”

Industry executives argue that the word is deliberately misspelled by environmental activists and that it has become a slur that should not be used by media outlets that strive for objectivity.

“It’s a co-opted word and a co-opted spelling used to make it look as offensive as people can try to make it look,” said Michael Kehs, vice president for Strategic Affairs at Chesapeake Energy, the nation’s second-largest natural gas producer.

This is the kind of story that New York AP writers love — it will get a lot of play, ending up on front pages all around the country, just as it did here at the Gazette.  But the story reminded me of a discussion a while back here on this blog in which our old buddy Bill Howley, author of The Power Line blog, about whether the right spelling is “fracking” or “fracing” and — more importantly — whether use of the phrase was leading to some fundamental misunderstandings about the potential dangers of the larger natural gas drilling and production process. Take a minute and go back to read the comments section of the previous post, Report ties ‘fracking’ to W.Va. well contamination and you’ll see what I’m talking about.

You see, environmental groups do love the word “fracking.” It makes for great signs and slogans and chants. From a public relations standpoint for them, it’s almost perfect. But the industry’s huge and growing PR machine, despite their protestations in this AP story, well, they like it to — because it’s allowed them to deflect the real issues about potential drinking water contamination into an almost absurd game of word play. Environmental groups have turned “fracking” into short-hand for the entire gas drilling and production process, and in some ways that’s given the industry a big advantage.

The main talking point for industry and its political friends regarding potential drinking water contamination from natural gas drilling and production has become this:

There are no documented cases of ground water contamination from hydraulic fracturing.

Friends, family and people effected by well water problems surround Craig Sautner as he speaks outside his home on Friday, Jan. 20, 2012 in  Dimock, Pa.  prior to a water delivery provided by The Enviromental Protection Agency.  Under the authority of the Superfund law the EPA is delivering water to four homes and testing water at 61 homes in the Marcellus Shale gas drilling area in Susquehanna County. (AP Photo/Scranton Times & Tribune, Michael J. Mullen)

Now, maybe that’s true. Maybe it’s not. Regardless, the turn of phrase — making fracking and hydraulic fracturing the whole focus — has allowed questions about drinking water contamination to be unfairly dismissed by industry, its PR machine, lawmakers and even some regulators.  And there is plenty of evidence that other parts of the process — particularly poorly done well casing jobs — has and can continue to lead to drinking water contamination.  An expert panel appointed by the Obama administration explained it this way:

One of the commonly perceived risks from hydraulic fracturing is the possibility of leakage of fracturing fluid through fractures into drinking water. Regulators and geophysical experts agree that the likelihood of properly injected fracturing fluid reaching drinking water through fractures is remote where there is a large depth separation between drinking water sources and the producing zone. In the great majority of regions where shale gas is being produced, such separation exists and there are few, if any, documented examples of such migration. An improperly executed fracturing fluid injection can, of course, lead to surface spills and leakage into surrounding shallow drinking water formations. Similarly, a well with poorly cemented casing could potentially leak, regardless of whether the well has been hydraulically fractured.

Bill Howley probably explained it better in comments on this blog:

Casing failure is a real and continuing problem for the gas industry. Failed casings and cement jobs have been destroying water wells in West Virginia for over one hundred years, at well pressures far below those used in the 1987 Parsons incident. Sloppy and dangerous cementing caused the Macondo well blowout in the Gulf of Mexico.

There is extensive evidence, the Duke study being the latest, of contamination of water wells because of failed casing and cement work on Marcellus wells. This is a proven problem that needs to be dealt with now.

Searching for some holy grail that will prove direct migration of fracing fluids from gas formations to aquifers is a distraction from the real and immediate problem — sloppy and dangerous casing work. This problem has been with the gas industry from the beginning. The Marcellus drilling is different only because the fracing pressures are so much higher and because of the massive amounts of water injected into wells.

Getting caught up in whether “fracking” is the right word just takes time, energy, and newsprint away from focusing on the very real questions about the shale-gas drilling boom, including not only water pollution, but the long-term sustainability of this industry in terms of gas supply and global warming.

State of the Union: Obama promotes natural gas, but is the shale-gas drilling boom a ‘bridge to nowhere’?

Wednesday, January 25, 2012


During his State of the Union address last night, President Obama made a huge point of promoting natural gas, while also trying to appear concerned about any potential impacts from drilling. Here’s what he said:

We have a supply of natural gas that can last America nearly 100 years.  And my administration will take every possible action to safely develop this energy.  Experts believe this will support more than 600,000 jobs by the end of the decade.  And I’m requiring all companies that drill for gas on public lands to disclose the chemicals they use.   Because America will develop this resource without putting the health and safety of our citizens at risk.

The development of natural gas will create jobs and power trucks and factories that are cleaner and cheaper, proving that we don’t have to choose between our environment and our economy.   And by the way, it was public research dollars, over the course of 30 years, that helped develop the technologies to extract all this natural gas out of shale rock –- reminding us that government support is critical in helping businesses get new energy ideas off the ground.

The president didn’t mention the recent downsizing of government estimates of the Marcellus Shale gas play, which we covered the other day here.  But perhaps more importantly, President Obama didn’t mention at all the very vigorous scientific debate over whether natural gas really improved greenhouse gas emissions compared to coal. We’ve covered that issue before here, here, here and here. And it’s worth noting that there’s been another paper published criticizing Cornell scientist Robert Howarth’s work on this issue and a reply by Howarth that vigorously defends his original conclusion:

We believe the preponderance of evidence indicates shale gas has a larger GHG footprint than conventional gas, considered over any time scale. The GHG footprint of shale gas also exceeds that of oil or coal when considered at decadal time scales, no matter how the gas is used. Considered over the century scale, and when used to generate electricity, many studies conclude that shale gas has a smaller GHG footprint than coal, although some of these studies biased their result by using a low estimate for GWP and/or low estimates for methane emission. However, the GHG footprint of shale gas is similar to that of oil or coal at the century time scale, when used for other than electricity generation. We stand by the conclusion: “The large GHG footprint of shale gas undercuts the logic of its use as a bridging fuel over coming decades, if the goal is to reduce global warming.”

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DOE slashes estimate of Marcellus Shale reserve

Monday, January 23, 2012

In this July 27, 2011 file photo, Range Resources site manager Don Robinson stands near the well head by the drill that goes into the shale at a well site for natural gas in Washington, Pa.  (AP Photo/Keith Srakocic, File)

Significant news out this morning from the U.S. Department of Energy’s Energy Information Administration:

… The estimated unproved technically recoverable resource (TRR) of shale gas for the United States is 482 trillion cubic feet, substantially below the estimate of 827 trillion cubic feet in AEO2011. The decline largely reflects a decrease in the estimate for the Marcellus shale, from 410 trillion cubic feet to 141 trillion cubic feet.

Now, this comes after last summer’s fairly confusing release of a new U.S. Geological Survey analysis of the Marcellus Shale reserve, and in the wake of other reports that have warned the Marcellus is not nearly as huge as some hopeful reports from the media, industry and political leaders have said.

In today’s early release of a summary of its 2012 Energy Outlook, the EIA explained its new figures this way:

Both EIA and USGS have recently made significant revisions to their TRR estimates for the Marcellus shale. Drilling in the Marcellus accelerated rapidly in 2010 and 2011, so that there is far more information available today than a year ago. Indeed, the daily rate of Marcellus production doubled during 2011 alone. Using data though 2010, USGS updated its TRR estimate for the Marcellus to 84 trillion cubic feet, with a 90-percent confidence range from 43 to 144 trillion cubic feet—a substantial increase over the previous USGS estimate of 2 trillion cubic feet dating from 2002. For AEO2012, EIA uses more recent drilling and production data available through 2011 and excludes production experience from the pre-shale era (before 2008). EIA’s TRR estimate for the entire Northeast also includes TRR of 16 trillion cubic feet for the Utica shale, which underlies the Marcellus and is still relatively little explored.

Interestingly at about the same time the EIA was briefing the media on its new report, Chesapeake Energy announced this news, what it called an update on additional steps it is taking to continue creating shareholder value in response to the lowest natural gas prices in the past 10 years:

Chesapeake plans to further reduce its operated dry gas drilling activity by 50% to approximately 24 rigs by the 2012 second quarter from 47 dry gas rigs currently in use and by 67% from an average of approximately 75 dry gas rigs used during 2011 … Specifically, during the 2012 second quarter, Chesapeake plans to have reduced its drilling activity in both the Haynesville and Barnett shales to six operated rigs each and to 12 operated rigs in the dry gas area of the Marcellus Shale in northeastern Pennsylvania.

And even in the so-called “wet gas” areas of the Marcellus like West Virginia (those areas where the natural gas reserves also contain significant amounts of potentially profitable other materials like ethane, butane, propane, and pentane), Chesapeake said:

Chesapeake plans to further reduce its undeveloped leasehold expenditures, the majority of which have been focused on liquids-rich plays during the past three years. The company is now targeting to invest approximately $1.4 billion in undeveloped leasehold expenditures in 2012 (net of joint venture partner reimbursements), of which approximately 90% will target liquids-rich plays and 100% will be in plays where the company is already active. This compares to undeveloped leasehold expenditures, net of joint venture partner reimbursements, of approximately $3.4 billion and $5.8 billion in 2011 and 2010, respectively.

Chesapeake CEO Aubrey McClendon said:

We have committed to cut our dry gas drilling to bare minimum levels that are likely to be maintained until expected drilling economics on dry gas plays return to levels competitive with expected returns in Chesapeake’s lineup of liquids-rich plays, which we believe is the best in the industry. As in previous natural gas pricing downturns, Chesapeake is promptly responding to rapidly changing market conditions, and we hope today’s announcement helps disprove the view held by some industry observers that producers fail to act rationally in times of unusually low natural gas prices.


The Marcellus Boom: How much shale gas is there?

Friday, January 20, 2012

Protesters stand in front of the Academy of Natural Sciences in Philadelphia before an appearance by Environmental Protection Agency (EPA) Administrator Lisa Jackson Friday Jan. 13, 2012.  Residents of the small northeastern Pennsylvania town of Dimock,  at the center of the political fight over natural gas drilling, joined environmental activists from elsewhere to rally Friday outside a conference on urban environmental issues.   About a dozen residents of Dimock have sued Cabot Oil & Gas Corp., claiming the energy company caused contamination of wells when it extracted natural gas using a process known as hydraulic fracturing, or fracking.  (AP Photo/Jacqueline Larma)

While the U.S. Environmental Protection Agency steps in to protect water supplies for the people of the Pennsylvania town of Dimock from natural gas drilling, West Virginia lawmakers are right now debating the huge tax breaks that Gov. Earl Ray Tomblin wants to offer to try to lure a natural gas “cracker” plant to our state to further the Marcellus Shale drilling boom.

We’ve written before about questions regarding the governor’s proposal, and about his overstating the potential job impacts of this sort of a facility. It’s clear that West Virginia and surrounding states are going to fall all over themselves trying to come up with giveaways for the cracker (despite questions about whether such programs are built on a strong foundation to protect the public’s investment, as these reports from Good Jobs first suggest).

But how sustainable is the Marcellus Shale boom?

Sen. Joe Manchin, D-W.Va.,  has told us:

We all know that Marcellus Shale could truly be a game-changer for our great state. We are literally sitting on top of tremendous potential with the Marcellus Shale, and we need to work together to chart a path forward in a safe and responsible way that allows us to produce energy right here in America and create good-paying jobs for hard-working Americans.

The potential of Marcellus is truly remarkable. From an energy-development standpoint, we are on the cusp of something that could help us reduce our dangerous dependence on foreign oil that threatens both our national security and our economic security. It’s so important that we develop our resources here at home, rather than continuing to rely on countries that don’t like us very much and wish to do us harm.

Still, serious questions are being asked — not by political leaders, of course — about all of this. Some of these are summarized clearly in a piece by Chris Nelder for the online magazine Slate:

The recent press about the potential of shale gas would have you believe that America is now sitting on a 100-year supply of natural gas. It’s a “game-changer.” A “golden age of gas” awaits, one in which the United States will be energy independent, even exporting gas to the rest of the world, upending our current energy-importing situation.

The data, however, tell a very different story. Between the demonstrable gas reserves, and the potential resources blared in the headlines, lies an enormous gulf of uncertainty.

We don’t yet know how much of the estimated gas resources will be economically recoverable or whether the projected production rates for some wells might be off by a factor of 10. We might have a 100-year supply of gas, or we might have an 11-year supply. We might realize economic and environmental benefits by transitioning trucking and coal-fired power generation to natural gas, or we might do so only to find ourselves out on a limb far more economically dangerous than the current peak and impending decline of world oil supply. We simply don’t know, and we may not know for years to come.

Wonder if Sen. Manchin will hold a field hearing to address these questions …

MIT paper: Shale gas could crowd out clean energy

Wednesday, January 18, 2012

There’s an important new paper out from scientists at MIT, published in the inaugural issue of a new journal, Economics of Energy & Environmental Policy. The paper is called, “The Influence of Shale Gas on U.S. Energy and Environmental Policy,” (sign-in required) and it concludes:

… The gas “revolution” has important implications for the direction and intensity of national efforts to develop and deploy low-emission technologies, like CCS for coal and gas.

With nothing more than regulatory policies of the type and stringency simulated here there is no market for these technologies, and the shale gas reduces interest even further. Under more stringent GHG targets these technologies are needed, but the shale gas delays their market role by up to two decades. Thus in the shale boom there is the risk of stunting these programs altogether. While taking advantage of this gift in the short run, treating gas a “bridge” to a low-carbon future, it is crucial not to allow the greater ease of the near-term task to erode efforts to prepare a landing at the other end of the bridge.

As explained in a National Geographic online article:

A team of researchers at Massachusetts Institute of Technology used economic modeling to show that new abundant natural gas is likely to have a far more complex impact on the energy scene than is generally assumed. If climate policy continues to play out in the United States with a relatively weak set of measures to control emissions, the new gas source will lead to lower gas and electricity prices, and total energy use will be higher in 2050.

Absent the shale supply, the United States could have expected to see GHG emissions 2 percent below 2005 levels by 2050 under this relatively weak policy. But the lower gas prices under the current shale gas outlook will stimulate economic growth, leading GHG emissions to increase by 13 percent over 2005. And the shale gas will retard the growth of renewable energy’s share of electricity, and push off the development of carbon capture and storage technology, needed to meet more ambitious policy targets, by as long as two decades.

“Shale gas is a great advantage to the U.S. in the short term, for the next few decades,” said MIT economist Henry Jacoby, lead author of the new study. “But it is so attractive that it threatens other energy sources we ultimately will need.”

 

How many jobs would a ‘cracker’ plant create?

Thursday, January 12, 2012

Gov. Earl Ray Tomblin waves to the crowd Wednesday, Jan. 11, 2012 prior to delivering his state of the state address at the Capitol in Charleston, W.Va. (AP Photo/Jeff Gentner)

Gov. Earl Ray Tomblin focused attention during last night’s State of the State address on his administration’s efforts to land a “cracker” plant that would create spin-off jobs based on the boom in natural gas drilling in the Marcellus Shale fields across West Virginia. The governor promised:

I will do everything in my power to make sure that West Virginia is positioned to take full advantage of this opportunity. I will not limit our efforts to just one project or even two. We will compete for every project — every dollar of investment and every new job that relies on the natural resources with which we have been so blessed.

Among other things, Gov. Tomblin said he plans to introduce legislation “to further refine our incentives in a fashion I believe will strengthen our competitiveness,” a proposal that the West Virginia Center for Budget and Policy have already explained is based on pretty questionable math.

But the governor also made this statement in his speech:

The American Chemistry Council estimates that we could create an additional 12,000 manufacturing jobs in West Virginia with the construction of an ethane cracker.

Now, when you think of manufacturing jobs, you think of pretty darned good jobs, right? Overall, the manufacturing sector in West Virginia pays about a third more in weekly wages than the private sector as a whole.

But Gov. Tomblin got this one wrong … Take a look at this two-page summary put together to describe the calculations the American Chemistry Council did of the economic impact of locating a cracker plant in West Virginia (for that matter, take a look at this fancier one-pager put together by the council’s communications department).

Table 1 outlines the estimated ongoing (permanent) jobs that might be created if a company invests $3.2 billion in a major cracker facility here: About 12,300 total jobs. That figure includes 2,500 direct jobs, 6,300 indirect jobs and 3,500 induced jobs. As Kevin Swift, the council’s chief economist, just explained to me, that total number of jobs — the 12,000 figure the governor cited in his speech on statewide television and radio, before a joint session of the Legislature — includes all manner of jobs. It is not only direct manufacturing jobs, but positions with suppliers and support industries — everything from a waitress at a new cafe across the road from the plant to a doctor who starts a practice to serve residents in a growing community.

But they’re not all manufacturing jobs, and the ACC study doesn’t provide more detail that would give a clearer picture of how many jobs in various sectors with various levels of pay and benefits might be includes. You can get perhaps a bit more information by looking at the average wages for each category — $112,000 annually for direct jobs and $34,000 for indirect. But that’s a basic average, and may not tell the whole story.

For those who want to understand the methodology of the industry study, you might check out this more detailed analysis that looks more broadly at impacts from expansions of the chemical industry associated with the natural gas boom and any accompanying cracker plants. It’s also worth remembering that these industry-produced studies are not necessarily the most helpful source for these sorts of projections, as we’ve reported before here.

Study: Public health left out of drilling decisions

Wednesday, January 11, 2012

We’ve written before about the work of an Obama administration Department of Energy panel examining drilling for natural gas in shale formations (see here and here).  And over at the Coal Tattoo blog, I’ve covered the problems with the fact that West Virginia’s Department of Environmental Protection doesn’t really have staff with an expertise or focus on human health issues.

Now a new article in the journal Environmental Health Perspectives discusses the lack of input from public health professionals in studies and regulatory actions regarding shale-gas drilling:

We review the extent to which advisory committees formed in 2011 by the US Department of Energy and the states of Maryland and Pennsylvania contain individuals with expertise pertinent to human environmental public health. We also analyze the extent to which human health issues are of concern to the public by reviewing the presentations to the public meeting of the Secretary of Energy’s Advisory Board Natural Gas Subcommittee.

At a public hearing held by the President’s Natural Gas Subcommittee 62.7% of those not in favor of drilling mentioned health issues. Although public health is specified to be a concern in the executive orders forming these three advisory committees, we could identify no individuals with health expertise among the 52 members of the Pennsylvania Governor’s Marcellus Shale Advisory Commission; the Maryland Marcellus Shale Safe Drilling Initiative Advisory Commission; or the Secretary of Energy’s Natural Gas Subcommittee.

The conclusion:

Despite recognition of the environmental public health concerns related to drilling in the Marcellus Shale, neither state nor national advisory committees selected to respond to these concerns contained recognizable environmental public health expertise.

Should W.Va. give ‘cracker’ plant a big tax break?

Monday, December 19, 2011

My buddy Ry Rivard over at the Daily Mail broke an interesting story today, reporting:

West Virginia officials are considering a new tax incentive to help lure a massive petrochemical facility to the state.

Under the plan, which must be approved by the Legislature, the owner of a facility known as an ethane cracker could save about half a billion dollars in personal property taxes over the next 25 years, Commerce Secretary Keith Burdette said in an interview last week.

The incentive would help counteract West Virginia’s personal property tax, which the business community has long complained deters investment in the state.

Later in the day, the good folks at the West Virginia Center for Budget and Policy posted a pretty strong take-down of this idea, explaining that West Virginia property taxes might already be cheaper than Ohio for one of these “cracker” plants that Gov. Earl Ray Tomblin is chasing so hard:

… Since West Virginia taxes business personal property and other states don’t, we need to create expensive tax incentives because of that built in disadvantage, right? Well, it turns out that the disadvantage created by business personal property tax is easily cancelled out once you remember that West Virginia has incredibly low real property tax rates.

Using some average tax rates and an average breakdown of real and personal property for businesses statewide, the Center came up with this handy chart: