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NG – New role in Clean Energy

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This topic contains 1 reply, has 2 voices, and was last updated by  Charles Randall 10 years, 5 months ago.

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  • #2624

    Freddy Martinez
    Participant

    Vast new supplies of domestic natural gas have the potential to advance the United States’ leadership role in the world’s fast-emerging clean-energy economy, said Steve Malcolm, chairman, president and chief executive officer of Tulsa-based Williams, in a speech Saturday in Oklahoma City at the U.S. Conference of Mayors annual meeting.
    Malcolm, who also serves as vice chairman of America’s Natural Gas Alliance (ANGA), delivered the speech at the event’s opening plenary session. Malcolm said mayors’ decisions to purchase natural gas vehicles in growing numbers and a transition to power plants that run on natural gas in communities across the country are helping the U.S. clean its air, create jobs and advance its energy security.

    “Our country is at a defining moment,” Malcolm told the mayors. “The United States is the envy of the world for our natural gas abundance and affordability. It truly puts our country in the driver’s seat for our clean energy economy, for the health and environment of our communities and for our energy security.”

    Credit is due in no small part to the nation’s already strong foundation of low-cost natural gas production and long-lived reserves along with the growing abundance found in U.S. shale formations. Shale gas makes up about 20% of U.S. natural gas production. That’s up from just 1% in 2000. In 25 years, it will account for 50%, according to IHS Cambridge Energy Research Associates. The Potential Gas Committee estimates that U.S. natural gas reserves total about 2,000 trillion cubic feet, or about 350 billion barrels of oil equivalent — a vast supply that can provide clean energy to the United States for many generations to come.

    “Bottom line: Our nation now has more natural gas, right here at home, than Saudi Arabia has oil, and we are now the world’s largest producer of this clean energy resource,” Malcolm said. “It changes the game. And, it gives our country an opportunity for real global leadership.”

    To illustrate just how vast our natural gas supplies are, Malcolm pointed to the mammoth Marcellus Shale, which spans West Virginia, New York, Pennsylvania and Ohio. Experts now believe it may be the second largest natural gas field in the world — behind only the South Pars/Asalouyeh field between Iran and Qatar.

    The contribution of natural gas to the U.S. economy is unmistakable. In fact the natural gas industry supported more than 2.8 million jobs in 2008 with an overall industry economic impact of $385 billion. In his speech, Malcolm also unveiled an ANGA-produced animated short video, titled “An Energy Story,” that explores the potential of natural gas to help meet U.S. clean energy goals.

    ANGA is the title sponsor of this year’s mayors gathering. The alliance also supported an event Thursday evening honoring the American Lung Association’s 2010 Clean Vehicle Champions, 16 mayors who champion clean transportation in their cities, largely by expanding their natural gas vehicle fleets and infrastructure.

    “When we talk about our economy, our environment and energy independence, we tend to talk in terms of Washington,” said ANGA President and CEO Regina Hopper. “But quite often it is local leaders, like our mayors, who are taking the wheel and driving change in communities across our nation. ANGA is proud to stand with the U.S. Conference of Mayors and the American Lung Association to highlight the vast potential of natural gas to help clear the air and enhance economic opportunities in our cities.”

    Natural gas vehicles are a significant area of focus at this year’s mayors’ gathering. They are being used to transport attendees. And, the event features a substantial exhibit hall with a diverse array of vehicles, from school and transit buses to service vans and passenger vehicles, that all run on clean, abundant and American natural gas.

    With mayors across America exercising significant purchasing authority, they can play a key role in the development of these clean transportation alternatives. ANGA has compiled for the nation’s mayors a compendium of best practices that spotlight the decisions of mayors across the country to embrace clean transportation through natural gas. The guide also was released at this week’s conference.

    America’s Natural Gas Alliance (ANGA) represents 34 of North America’s leading independent natural gas exploration and production companies. ANGA members are dedicated to increasing the appreciation of the environmental, economic and national security benefits of clean, abundant, North American natural gas.

  • #5574

    Charles Randall
    Participant

    It is understandable that Clean Energy propagadist like T Bone Pickens & Williams Energy want to push Nat Gas use and try make case for Liberal government pushing Carbon Tax to expend huge tax dollars for use in vehicles (and all the infrastructure much like Hydrogen Fueled cars – to deliver it at refill stations).
     
    But this kind propaganda (filled with flaws and bad estimates) doesnt belong at Oil Refining blogg site where we deal with facts. The US has import Nat Gas from Canada & Mexico both of whom do not have enough to export but US & them use exchanges to avoid investments in P/L to move remote supplies into populated areas. Additionally until recently US even had to import Liquid Nat Gas from Russia during the summer to keep up with demand. Russia can easily place all its export LNG into Europe but has been avoiding storage investments by using high priced US export market – with Nat Gas collapse in price in late 2008 / early 2009 from $13.5/MMBTU back to pre-regulated price levels of $3.5-4.5/MMBTU, it now does not support LNG imports at this price level. 
     
    They are right that US has gone to ~20% NG production levels  first with capture of Coal Bed Methane in Coal fields of Wyoming/Montana/Colorado areas ~10% and now from development of new gathering system in Eastern & Midwestern Shale coal fields. But this barely matches the decline in huge Texas Nat Gas field that supplies most of US production & without the recent demand destruction of one of Nat Gas larger consumers the US would be net short.
     
    The Enviornmental groups, Nat Gas Marketers & of Course these Clean Energy groups all want you to believe in large reserve forecast that have never been correct & believe that Nat Gas can support additional demand sectors…….. it is lie.
     
    The US used to regulate the price and use of Nat Gas so that only limited amounts could be used in the Power/Utility sector because we knew there was not enough to meet Residential, Industrial+Chemical, & Utility sectors. When it was deregulated in 1980’s based on unsubstantiated expectations of future reserve production levels – it was thought that the Coal power plants would be shut down as new CLEAN ENERGY NG power plants came online & combo would drive down power price. But the prices spiked, Power industry that did jump into large number of plants quickly found there wasnt enough NG & they couldn’t make returns at new price levels (California is power child for this stupidity & the Pacific NW power crisis of 2000 where drought in Hydroelectric supplies from Washington/Northwest wasnt available due lack snowfall/low water levels at dams). This same PNW power crisis still awaits California – only gas speculators like Enron have gone bankrupt along with other Nat Gas suppliers when Calif did not honor supply contracts made during the shortage.
     
    And the continued increase in demand to Merchant & Private power producers drove prices to above $6.50-$8.00/MMBTU where Industrial, Chemical & Power consumers were just below breakeven on existing plants. When the speculators (Mutual fund & investment traders) began ramping price spikes like they have done on all global commodities it surged to $13.5/MMBTU and boosted the investment in LNG import sites in US. The +$6.50/MMBTU price levels finally forced most remaining / lingering US Chemical plants using Nat Gas (most already moved to China) to close – especially the Fertilizer Industry which consumed nearly 20% of US Nat Gas & had allowed US to Export Fertilizer at $100/ton levels. Now US has to import Fertilizer at $300/ton into the MidWest & only remaining producers (like Farmland) use petcoke/coal or Refinery offgas instead Nat Gas. 
     
    The Nat Gas market price never recovered & you can easily see this from split in it tracking the WTI price & other energy fuel prices. Eventually the decline in US convential NG markets, loss LNG imports & market use will raise demand back to level to bankrupt another group investors who buy into this fairy tale of enough NG to meet all demand forces. I am supprised these guys did not mention the huge amounts of Gas Hydrate along the US eastern Coastal shores (see Ice that Burns articles) which no one has figured out how use so far.
     
     
     

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