American Gas - August 2012 - (Page 11)

news GAS PRODUCTION IEA Sees Bright Future If Public Concerns Heeded NATURAL GAS IS ON ITS WAY to a bright future over the next five years, the International Energy Agency says, with lower prices from the unconventional gas revolution continuing to benefit the United States and with China expected to double its consumption. The June 5 report, Medium-Term Gas Market Report 2012, said North America will become a net liquefied natural gas exporter over the 2012–17 period. China will become the thirdindustry, and other stakeholders must work together to address legitimate public concerns about environmental and social impacts. The “golden rules” in the IEA report (see sidebar below) emphasize the importance of full transparency, measuring, and monitoring of environmental impacts, and engagement with local communities; careful choice of drilling sites and measures to prevent leaks from wells into nearby aquifers; AGENCY PROPOSES “GOLDEN RULES” THE INTERNATIONAL ENERGY AGENCY’S report Golden Rules for a Golden Age of Natural Gas contends that there is a critical link between the way governments and industry respond to these social and environmental challenges and the prospects for unconventional gas production. It set out two possible scenarios for unconventional gas. If the “golden rules” are applied: • World production of unconventional gas, primarily shale gas, more than triples between 2010 and 2035, to 1.6 trillion cubic meters. • The U.S. becomes a significant player in international gas markets. • China emerges as a major producer. • New sources of supply help to keep prices down, stimulate investment and job creation in countries rich in unconventional gas, and generate faster growth in global gas demand, which rises by more than 50 percent between 2010 and 2035. If the rules are not in place: • A lack of public acceptance means that unconventional gas production rises only slightly above current levels by 2035. • The competitive position of natural gas in the global fuel mix deteriorates because of lower availability and higher prices, and the share of natural gas in energy use barely increases. largest gas importer during the period, behind Europe and Asia Oceania (comprising Australia, Israel, Japan, South Korea, and New Zealand), driving a 2.7 percent average annual growth in global natural gas demand, up from the 2.4 percent average annual growth predicted in last year’s report. Japanese imports will increase, the report said, although the amount will depend on the country’s evolving nuclear policies. The report was released a few days after another IEA study, Golden Rules for a Golden Age of Natural Gas, which said that while the world’s vast resources of unconventional natural gas hold the key to the fuel’s future, governments, rigorous assessment and monitoring of water requirements and wastewater; measures to target zero venting and minimal flaring of gas; and improved project planning and regulatory control. “The technology and know-how already exist for unconventional gas to be produced in an environmentally acceptable way,” says IEA Executive Director Maria van der Hoeven. “But if the social and environmental impacts are not addressed properly, there is a very real possibility that public opposition to drilling for shale gas and other types of unconventional gas will halt the unconventional gas revolution in its tracks.” www.iea.org With the ability to communicate using walk-by, drive-by or fixed-base reading technology, the FlexNet™ wireless communications network enables gas utilities to easily change or mix reading methods to meet their operational needs today and for years to come. Combined with the highest power network and lowest total cost of ownership, you’ll get more than AMI...you’ll clear a path to the future. www.sensus.com/smartpoint AUGUST/SEPTEMBER 2012 AMERICAN GAS Sensus AGA August 12-DRAFT1.indd 3 7/12/2012 8:18:03 AM 11 http://www.sensus.com/smartpoint http://www.sensus.com/smartpoint http://www.iea.org

Table of Contents for the Digital Edition of American Gas - August 2012

American Gas - August 2012
Contents
President’s Message
Industry News
In the Know
Safety First
Tech Talk
Taming the Talent Pipeline
Decision Time
Places to Be
Vendor News
Noteworthies
Advertisers’ Index
Jobline
Marketplace
Facts on Gas

American Gas - August 2012