Is natural gas a type of clean energy? One of the major benefits of natural gas is that it’s a type of clean energy, offering environmental benefits over other fossil fuels like coal that include reduced CO2 emissions. In fact, CO2 emissions from natural gas are half of those resulting from coal. The increased reliance on natural gas over the past few years has resulted in the lowest CO2 levels the power sector has seen in nearly three decades. The U.S. Energy Information Administration attributes this benefit to the use of natural gas for energy production. Use of natural gas over coal is credited for nearly two-thirds of reductions in CO2 emissions from years 2006 to 2014. But, the environmental benefits do not end with CO2 emissions. As a source of energy, the use of natural gas will reduce other emissions including: NOx SO2 PM Acid gasses Hg Non-Hg heavy metals In addition to its environmental benefits, natural gas is helping the United States toward economic-related environmental and energy sustainability goals. According to the United States Department of Energy, “The clean energy industry generates hundreds of billions in economic activity, and is expected to continue to grow rapidly in the coming years. There are tremendous economic opportunities for countries that invent, manufacture and export clean energy technologies.” The price of energy – from the electricity needed to run a factory to the gas powering the delivery truck – impacts the final cost of every item you purchase. Some things require more energy than others. In the steel industry, energy can account for 20 to 40 percent of the cost to make materials for things like stainless steel appliances or railroad tracks. So when manufacturers have access to less expensive energy, their overall production costs decrease as well. For decades, Americans saw their jobs move overseas where the labor, and thus cost of doing business, was cheaper. But a shift since 2010, according to the Bureau of Labor Statistics, shows that the number of manufacturing employees continues grow. Why? Innovative technologies like hydraulic fracturing and horizontal drilling now provide access to abundant supplies of natural gas. This energy source’s increased availability caused its prices to drop and companies have utilized the savings in many ways, which includes hiring more workers. This is especially true for U.S. energy-intensive manufacturers, who now have an advantage over many foreign competitors, and that means more investment and jobs. For example, access and proximity to this plentiful energy resource has made the U.S. the place to be for petrochemical and plastics manufacturers. According to the American Chemistry Council, our abundant supply of natural gas has attracted nearly $200 billion in new manufacturing investment which will create 468,000 new jobs by 2025. The need for this plentiful, affordable energy source is not slowing down. According to the National Association of Manufacturers, total natural gas demand is expected to increase by 40 percent over the next decade, with the manufacturing and power generation sectors driving that need. Natural gas is in manufactured products. From parts in the cars we drive to the toys we buy our children, natural gas products serve as a building block for thousands of consumer goods. It’s one of the primary feedstocks for chemical compounds know as petrochemicals. Scientists classify these compounds into one of three categories – olefins, aromatics and synthesis gas. Natural gas liquids produce around 90% of U.S. olefins, which is a class of chemicals that includes ethylene, propylene, and butadiene. These three petrochemicals are required to manufacture a wide range of items that support the leisure and fundamental comforts of modern life. Vehicles, no matter the power source or size, are lighter, sleeker and faster because of the natural-gas based plastics, fibers, compounds and adhesives used to make and maintain them. They’re also safer thanks to the seat belts and air bags made from polyester, a strong, durable and flexible fiber. Products made with natural gas also save lives – acrylic lenses sharpen the vision of those suffering from cataracts; sterile products, like intravenous lines and bags, gloves, masks and catheters, prevent the spread of disease; and medications are able to last longer with refrigeration. The Renaissance of petrochemical manufacturing. Just a decade ago, the U.S. petrochemical industry was in decline. However, greater access to low-cost natural gas feedstocks, and an increased need for goods manufactured with them, has shifted the tide. According to the International Energy Agency, global economic growth is lifting people in developing countries into the middle class. Higher incomes give these individuals more money to buy items made with petrochemicals like kitchen appliances, toys, credit cards and furniture. This demand has resulted in multimillion-dollar investments to expand or build new petrochemical manufacturing facilities. In fact, jobs at energy-related chemicals companies are projected to rise from 53,000 in 2012 to nearly 319,000 by the end of 2025. Not only will job growth increase, but so will wages. Labor income in the energy-related chemicals industry will likely increase nearly $3.8 billion in 2012 to just over $26 billion in 2025. And though the industry has a long history along the Gulf Coast, this boon has the potential to create a secondary hub in Appalachia. Two advantages of this area are its proximity to abundant natural gas liquids in the Marcellus and Utica shale formations and to major manufacturing markets in the Midwest and East Coast. According to the American Chemistry Council, this growth could result in over 100,000 new jobs for residents throughout the mountain region, thanks in part to natural gas. The shale revolution has meant so much more than just lower electricity prices for end consumers. Increased natural gas production has resurrected manufacturing, and brought along with it more jobs, higher wages and the potential for new business in new regions.
The United States used 97.8 quadrillion British thermal units (Btu) of energy in 2016. That’s 3.5 times more energy than Russia used the same year. Burning fuel to meet these energy demands affects the environment, but a shift in the last decade to lower-carbon natural gas has had a significant impact. Natural gas also emits less carbon dioxide (CO2) than other fossil fuel sources, so its greater use drives down the number overall. In fact, the U.S. Energy Information Administration’s (EIA) projections show that in 2019 energy-related carbon emissions will have decreased 13 percent from 2005. Why has this shift occurred? Technology and innovation have provided access to abundant supplies of natural gas – an energy source that produces fewer emissions than other fossil fuels. Its increased availability has increased its affordability, making natural gas the leading choice for electric generation and supporting renewable energy. Innovation in Access Though people have used natural gas since 1000 B.C., innovations over the past few decades have improved the efficiency and effectiveness in how we extract it. Advanced technologies, like hydraulic fracturing and horizontal drilling, allow operators to access larger amounts of natural gas trapped in shale and other tight rock formations. While conventional vertical drilling requires spacing out many individual wells over a wide area, horizontal drilling allows for up to 20, or more, wells from a single surface location. Utilizing these techniques has reduced the surface footprint of natural gas development by 90 percent. Continuously evolving technologies have pushed production to reach record highs by streamlining the extraction process. These innovations have also impacted the amount of methane emitted from hydraulically fractured natural gas wells, which dropped 14% between 1990 and 2016, even as production rose more than 50 percent. Increased Use of Natural Gas Increased access to natural gas has made it more abundant and affordable. This energy source fueled more than 31 percent of U.S. electricity generation in 2017, leading all other fuels and the EIA projects that number will rise to 41 percent by 2050. The surge stems from the construction of new natural gas plants to meet growing demand, in addition to replacing facilities that use more carbon-intensive fuel, like coal. This is already evident in regions like the northeastern U.S., where natural gas has nearly doubled its generation portfolio. To define natural gas, we must to understand what it consists of, beyond an understanding that it comes from nature. Natural gas is made up of a mixture of four naturally occurring gases, all of which have different molecular structures. This mixture consists primarily of methane, which makes up 70-90% of natural gas along with ethane, butane and propane. These gases are a result of compacted heat and pressure from deceased animals buried deep under the Earth’s surface for millions of years. Natural gas is extracted from inside the Earth through natural gas drilling and alongside oil drills. Once extracted, the gas is combined with a liquid called crude oil – this is how we can convert natural gas into everyday energy. Why Use Natural Gas? Natural gas is a beneficial source of natural energy, offering advantages over other energy sources such as: • fewer impurities • less chemically complex • combustion results in less pollution • produces less carbon dioxide (which is the primary greenhouse gas), sulfur dioxide (primary precursor of acid rain), nitrogen oxides (primary precursor of smog) and particulate matter (affects health and visibility), than other energy sources • affordable • reliable, meaning it is available for extraction. Natural gas is also being as a clean energy source in the following ways: • making fertilizer for ethanol • generating power for homes and businesses • transportation on land and sea • electricity generation • making methane for hydrogen • used in most of our manufacturing products. Where is Natural Gas? Domestic natural gas production has grown over 20% in the past few years and America is now the world’s leading producer. It is estimated that America has at least a 100-year supply of natural gas. Natural gas is most abundant in states including Texas, Pennsylvania and Oklahoma. Fun Facts about Natural Gas • Natural gas is odorless, colorless, flammable and non-toxic. • Natural gas was first discovered when lighting strikes ignited gas that was seeping from the ground in the middle east between 6000 and 2000 BC. • In 1626, natural gas was found in America when French explorers discovered Native Americans igniting gases that were seeping out of Lake Erie. • A man-made volcano erupts in front of the MGM Mirage Hotel in Las Vegas every hour on the hour in the evenings and it is fueled with pina colada-scented natural gas.
Natural Gas is Reliable Why do we need natural gas? Natural gas works for America because it is a reliable source of energy. Think of all the times throughout the day that we rely on energy being conveniently and readily available. Every time you flip a switch to turn on the lights, press a button to turn on your computer, or turn a knob to power your stove, energy is used. As consumers, we demand that energy be available 24 hours a day, year round. But while energy use is constant, the amount of energy used is not always consistent. Consider, for example the different climates around the country and the fluctuations in energy needed to heat and cool homes throughout the year. Maintaining the supply to meet demand requires a balance between the energy that flows into the power grid, and the energy used. We need an efficient and flexible source of energy that keeps the lights on, even when the wind isn’t blowing or the sun isn’t shining. Natural gas is the right solution to meet these needs. The forecast for natural gas To say that natural gas is reliable touches on a few other key points, that it is abundant and affordable. In 2016, one-third of all electricity used in the US was produced by natural gas. And the outlook on natural gas is promising. America has an abundance of natural gas, meaning generations of resources that we can extract and produce at affordable costs.
Is Natural Gas Affordable? Yes, natural gas offers an affordable source of energy. According to an IHS study, 800 trillion cubic feet of natural gas can be developed for around $3 per cubic foot, and America consumed 27.5 trillion cubic feet of natural gas in 2016. When you do the math, it’s clear that natural gas is a cost effective solution to America’s demand for energy. Why is Natural Gas Affordable? Affordability goes hand in hand with the fact that natural gas is abundant in America. As mentioned, the amount of natural gas used by America in 2016 amounts to 27.5 trillion cubic feet, yet an additional 800 trillion cubic feet is available at roughly the same price point. And, another 1,400 trillion cubic feet of natural gas is available at just a reasonable price point. Extraction > Production > Savings Advancements in natural gas extraction methods have resulted in an abundant supply of natural gas. Technology has increased production efficiency through both hydraulic fracturing (also commonly referred to as fracking) and directional/horizontal drilling. Improved production methods reduce costs, allowing producers to produce more natural gas and oil. Assuming that technological advancements within the industry continue over the next decade with access to additional resources, the estimated total end-use consumer cost of natural gas and electricity in the year 2030 is expected to drop from $654.8 billion to $588.9 billion. This 10.1% price decrease accounts for a savings $65.9 billion, nationally. Per household, this reflects a savings of $464. By the year 2040, end-use consumer costs of natural gas and electricity are estimated to drop 14.5%, or $100.6 billion. Per household, this reflects a significant savings of $655 per household.
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