Governor’s office: State energy focus on gas and coal

Posted: Jan 05, 2012 5:20 PM EST Updated: Jan 05, 2012 5:25 PM EST

By Taylor Kuykendall, Reporter

Gov. Earl Ray Tomblin's office, a staff member told reporters, is largely focusing on natural gas and coal, not expanding renewable or other energy sources through state initiatives.

Chief of Staff Rob Alsop, speaking at the AP Legislative Lookahead on Thursday, said the state wants to be a leader in manufacturing and coal. Asked about expanding the energy portfolio to other sources, Alsop indicated the state executive's focus is elsewhere.

"Our real focus has been on protecting coal and making sure it's production goes forward and then responsibly protecting the environment and working on natural gas," Alsop said. "So, that's been our main focus."

Alsop said the governor believes there's much potential in shale gas, particularly for the downstream products that can be obtained from the gas.

"We think this will reinvigorate manufacturing in the Appalachian basin," he said.

Also said the success of wind production will most likely hinge more on federal tax programs, not state-level incentives.

"If they stay, we have wind farms. If they don't then we won't," Alsop said.

He pointed to challenges with wind and similar sources overcoming gas- and coal-fired electricity, such as price. He added that the state's Division of Energy was looking into a study that was conducted regarding the state's potential as a geothermal energy source but didn't immediately know the details of its progress.

Alsop said the number one economic priority is attracting an ethane cracker to the state. An ethane cracker converts ethane, which is produced along with natural gas from Marcellus shale formations, into chemicals that can be used in various manufacturing processes.

The resulting jobs and spin off jobs from chemical companies that use the products, have been much sought after by West Virginia officials. Announcements regarding one or more crackers are anticipated early this year.

Alsop said the governor's office is confident West Virginia had a good chance of landing a cracker.

"We believe we have some advantages that other states don't have," Alsop said. "We have a realistic shot at multiple crackers coming to the state."