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Fossil Fuel: Natural Gas
National Renewable Energy Laboratory
The United States has abundant natural gas reserves. And because it is relatively inexpensive and nonpolluting, natural gas is being used increasingly for electricity generation and other industrial uses. New technologies will help to extend the types and productivity of gas resources.
RESOURCE
Natural gas is a combustible, gaseous mixture of hydrocarbons including mostly methane; it is called "dry" gas when liquid hydrocarbons and nonhydrocarbon gases are removed.
Total 1992 U.S. natural gas production of 17.8 trillion cubic feet (Tcf) was 27% of total U.S. energy production; that production came from more than 250,000 wells in 33 states and in federal waters (Gulf of Mexico, offshore California). Texas produced 6.7 Tcf, Louisiana 5.0 Tcf, and Oklahoma 2.0 Tcf.
Year-end 1992 U.S. dry-gas proven reserves were just more than 165 Tcf. As much as 1295 Tcf is technically recoverable in the Lower 48 States--a 60-year supply at projected consumption rates.
ADVANTAGES
Natural gas is the most environmentally friendly fossil fuel. There are adequate domestic resources and proven reserves of natural gas. Natural gas can be converted to high-value liquid petroleum products such as automotive fuel.
CURRENT USE AND COST
In 1992, the United States consumed 19.5 Tcf of natural gas--more than 24% of all U.S. energy consumption; industrial use was 7.5 Tcf (39% of total gas consumption); residential use was 4.7 Tcf (24%); commercial use was 2.8 Tcf (14%); electric utility use was 2.8 Tcf (14%); and other use was 1.7 Tcf (9%).
1992 imports of natural gas were 2.1 Tcf--more than 9% of total U.S. consumption; nearly all of that came from Canada via pipeline.
During 1992, residential sector users paid an average price of $5.89 per thousand cubic feet (Mcf); commercial, industrial, and electric utilities sector users paid $4.88, $2.84, and $2.36 per Mcf, respectively.
PROJECTED USE AND COST
U.S. gas consumption is expected to increase from 18.7 Tcf in 1990 to 24.1 Tcf in 2010. Domestic production is expected to increase from 17.8 Tcf to 20.2 Tcf. Imports are expected to provide 16% of consumption in 2010. Residential consumption is forecast to increase 10% from 1990 to 2010; industrial consumption will increase 12%. These increases are attributable to gas conversions, continued gas dominance in new housing, and new uses for gas.
On January 1, 1993, all price controls on first sale of natural gas were removed.
ISSUES
Natural gas is not easily transported to or from countries outside North America. Pipelines are generally required for distribution to end-users.
OPPORTUNITIES AND CHALLENGES
Demands for a cleaner environment and advances in gas-fired generation technology are increasing the use of gas for the generation of electricity. At least half the generating capacity added in the United States in the next 15 years will be from gas-fired turbines.
Of the estimated 1295 Tcf of recoverable gas in the Lower 48 States, recovery of more than 200 Tcf depends on developing better technology.
Compressed natural gas represents the largest share of alternative-fuel consumption projected for the transportation sector in 2010.
More interregional pipeline capacity is needed to support expansion of gas markets. Total pipeline capacity is projected to increase from 89.6 billion cubic feet per day (Bcfpd) in 1992 to 107.2 Bcfpd in 2010.
NEW TECHNOLOGIES
Advanced exploration technologies, such as 3-D seismic mapping, can locate previously undetected resources.
Unconventional gas recovery technologies include production from low-permeability reservoirs, recovering methane from coal beds, and recovering gas from Devonian shales.
Research and development in high-efficiency gas technologies (e.g., fuel cells) is strongly supported by the Climate Change Action Plan.
Advanced gas turbines operate at higher temperatures and efficiencies; nitrogen oxide emissions will be cut in half.
New drilling technologies are reducing the cost of producing gas now.
REFERENCES
Energy Information Sheets, Energy Information Administration, DOE, December 1993.
Annual Energy Outlook 1994, with Projections to 2010, Energy Information Administration, DOE, January 1994.
Natural Gas Research--Program Profile: The Resurgence of a Domestic Energy Option, Office of Fossil Energy, DOE, 1994.
Annual Energy Review 1993, Energy Information Administration, DOE, June 1994.
Footnotes
This document is Contract DE-AC36-83CH10093, a series of the National Renewable Energy Laboratory, sponsored by the U.S. Department of Energy.
2. The National Renewable Energy Laboratory (NREL) is managed and operated by Midwest Research Institute for the United States Department of Energy. NREL-authored documents are sponsored by the U.S. Department of Energy under Contract DE-AC36-83CH10093.
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