Wednesday, October 29, 2008

Moving From Oil to Natural Gas – A Look at the Industry

Natural gas is not a renewable energy, but it is one that many have stated as being a stepping stone energy source on the way to energy independence. Currently, over 95 percent of natural gas used in the United States moves from well to market entirely via pipeline. Natural gas pipelines are generally smaller in diameter than petroleum pipelines. Pipelines in the gathering and distribution systems range from 6″ to 16″ in diameter, with certain segments as narrow as 1/2″. The pipes making up the interstate transmission system range in diameter from 16″ to 48″. Local distribution systems deliver natural gas into our homes, businesses and power plants.

Some natural gas sources are too difficult or too expensive to reach via pipeline. Converting natural gas to liquid form - which occurs at approximately -260F - decreases its volume by more than 600 times and allows other transportation options, such as specially outfitted tanker ships and trucks, to be used. Once the liquefied natural gas reaches its destination, it is re-vaporized and transported through existing pipelines.

The natural gas used to cook our food and/or heat and cool our homes is 90 percent clean-burning methane, the simplest form of hydrocarbon. But that’s not the case for natural gas as it comes out of the ground. Depending on the location of the well and the geologic conditions that created the gas in the first place, contaminants such as water, sulfur and natural gas liquids (including ethane, propane and butane) may be present. This has to be processed in order to remove these imperfections. The smell associated with natural gas is actually an additive induced into the gas so that consumers can safely manage the substance.

The United States has vast resources of natural gas available for extraction. The Energy Information Administration (EIA) estimates that there are 1,532.82 Trillion cubic feet (Tcf) of technically recoverable natural gas resources in the United States. Most of the natural gas that is found in North America is concentrated in relatively distinct geographical areas or geologic basins where the natural gas accumulates under the earth. Given U.S. production levels in 2002 and the National Petroleum Council’s estimate for available domestic resources, there is enough natural gas in the United States to meet over 75 years of domestic production. This would only provide the United States a buffer of 60 years to change direction to more renewable energy resources.

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