The Source - Fall 2008 - (Page 18)

 CLIMATE CHANGE LEGISLATION, from page 17 93 percent of the original energy that leaves the ground reaches your home. Only 7 percent is lost in the drilling and distribution processes. By contrast, only 28 percent of the actual energy related to the production of electricity reaches a consumer’s home. Seventy-two percent is lost in electricity’s less efficient conversion and transmission methods. Efficiencies in the direct use of natural gas continue to be made. Today, the average household uses approximately 30 percent less natural gas than it did in 1980. In the 1970s, natural gas furnaces were often less than 65 percent efficient; today’s models are up to 95 percent efficient. Efficiencies in natural gas use will only increase as newer and more advanced technologies are created. Given that almost all of the natural gas consumed in the United States is produced in North America, natural gas also can play a critical role in furthering efforts to obtain energy security. Clearly, the upcoming climate change debate that will be occurring in Congress over the next few years will have a tremendous impact upon natural gas prices and public gas systems. Public gas systems are nonprofit and owned by, and accountable to, the citizens they serve. They truly represent the interests of their customers and therefore have an important voice that must be heard during this debate. We look forward to working with you on this critical issue. Mike Corley and Andy Colosimo serve as chair and vice-chair, respectively, of the APGA legislative subcommittee. Mike is the vice president, human resources and general counsel of Middle Tennessee Natural Gas in Smithville, Tenn. Andy is the government aﬀairs manager for Colorado Springs Utilities. The inherent cleanliness of natural gas and high efﬁciency of natural gas equipment can be critical for meeting required reductions in greenhouse gas emissions. The SOURCE preview In the next edition of THE SOURCE, look for a detailed article on methane hydrates and ways they could lower natural gas prices, enhance our national security and lead the United States to being a truly energy independent nation. Until then, here’s a sneak peek Gas hydrates: poised for the next phase By Art Johnson, president Hydrate Energy International The vast resource potential of gas hydrate could achieve commercialization in the United States within a decade or less if sufficient funding is available for production-scale testing in the next two years. Gas hydrate is a solid crystalline substance composed of water and natural gas. Hydrate forms under conditions of moderately high pressure and moderately low temperature, conditions that occur in sediments in the Arctic and along continental margins. The total volume of gas hydrate in the world is truly enormous, with many thousands of TCF concentrated in reservoirs suitable for commercial development. Research programs conducted during the past decade in the United States and other countries have defined the geological criteria for hydrate deposits with commercial potential. Numerous hydrate deposits have been identified in the Arctic, and a 2008 drilling program will test several possible hydrate deposits in the Gulf of Mexico. Small-scale production testing has been carried out on the North Slope of Alaska and in the Canadian Arctic. The next step is an industry-scale production test of 6 months or longer duration in Alaska. Such a test will demonstrate the commercial viability of gas hydrates and should spur the oil industry to pursue development. The great progress of the U.S. program has been achieved through federal funding of $10-15 million per year, an amount that that has been barely adequate. The extended production testing will require a higher level of funding, something that the current administration has been unwilling to pursue. Decisions made in the next year will determine whether this huge resource will contribute to U.S. gas supply. 18 THE SOURCE | THE VOICE AND CHOICE OF PUBLIC GAS

Table of Contents Feed for the Digital Edition of The Source - Fall 2008

The Source - Fall 2008 Contents First Person APGA Awards APGA Events Overview Up Next in THE SOURCE Grassroots Connections Climate Change Legislation Market Transparency: An Insider's View Legislative Outlook The Pipeline Marketing Matters Advertisers' Index At Last

The Source - Fall 2008

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