The Source - Winter 2008 - (Page 13)

It is this complacency and ignorance among lawmakers that has caused America’s current energy crisis. America will continue to suffer until Congress and the president treat the energy crisis with the same sense of urgency as the financial crisis–which, when coupled with energy prices, is responsible for the current economic turmoil. Lost in translation The role natural gas plays in our society is misunderstood. Natural gas is used in the manufacturing and creation of everyday household products and in just about any type of processed material we use. Natural gas also is a prime component in the manufacturing of composites used to create windmills and solar panels that one day will lead us to a renewable energy future. Born less than one mile from the original oil patch in Titusville, Penn., and growing up with a great appreciation of the energy industry, I was shocked to learn seven years ago that Congress, through the annual appropriations process, had locked up 85 percent of offshore lands to exploration and production of natural gas and oil. This, and many other federal policies that restrict the domestic production of energy, will continue to keep the United States from securing energy independence, unless action is taken. You are that “action”! Industry groups like the American Public Gas Association, the companies they represent, and their customers must aggressively push Congress and the incoming administration to address this energy crisis head-on. Any broad-based energy plan will undoubtedly move toward a cleaner energy future where natural gas will play the leading role. Supply at home With natural gas demand expected to increase by 45 percent in the next two decades, rumblings of climate change legislation on the horizon, natural With increased use of natural gas for electricity generation, transportation fuels, and industrial use, one thing is certain: The need to balance the demand with adequate supply is critical. gas vehicles gaining popularity, and 90 percent of new power generation originating from natural gas supply issues are of serious concern. Currently, the United States produces 83 percent of the natural gas consumed, importing 14 percent from our neighbors to the north and depending on Liquefied Natural Gas (LNG) for another 3 percent. With Canada ramping up production of its tar sand fields, increasing its need for gas, and world demand soaring making LNG more expensive, America must look no further than within its own boarders and federal waters to make up this difference. Through increased deepwater exploration, the rapid develo solpment of shale, and the future potential of coal to gas and methane hydrates, we have the resources here at home to become entirely natural gas independent–so long as government sets policy that looks to the future and creates a conducive environment for increased exploration and production to occur. Renewable resources The Marcellus Shale formation, which runs from southern New York, across Pennsylvania into eastern Ohio, West Virginia, and ends in Kentucky, is one of the many promising shale plays that will contribute significantly to meeting natural gas demands of the future. Scientists estimate that the Marcellus contains between 500 and 600 TCF, of which 10 percent is technically recoverable with current drilling technology. Located between 6,000 feet and 8,000 feet below the Appalachian basin, the Marcellus will provide much-needed relief to the New England and New York markets. Along with the development of shale reserves and the proven resources on the Outer Continental Shelf–conservatively estimated at 420 TCF–natural gas prices will stabilize and eventually decline once these sources are explored and developed. As the clean, green fossil fuel with endless potential, natural gas will serve as the bridge to the renewable energy future. Through trillions of dollars in royalty revenues from offshore natural gas production, the federal government will receive a windfall of new funding that should be dedicated to advanced fuel technologies–including the commercial development of coal-to-gas technology and research of methane hydrates. Coupled with wind and solar, natural gas use will continue to increase. However it is important to paint a clear picture for the American people. When added together, wind and solar energy account for less than one half of 1 percent of our energy production. If capacity doubles in the next five years– because of increased consumption–they still only account for less than two-thirds of a percent of our nation’s energy needs. This is not to discourage the use of renewables for electricity generation, but rather to further illustrate the growing need for natural gas as a bridge fuel until renewables can shoulder a larger load of the energy demands.  THE SOURCE | WINTER 2008 , VOL. 1, ISSUE 2 13

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

The Source - Winter 2008 Contents First Person The Bridge to Renewable Energy Future Natural Gas: The Comfortable, Responsible Energy Solution Gas Hydrates: Poised for the Next Phase The Role of Natural Gas in a Carbon-Constrained World Natural Gas Prepays Taking the Leap to Natural Gas Vehicles The Pipeline Legislative Outlook Advertiser's Index Advertiser.com At Last

The Source - Winter 2008

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