American Oil and Gas Reporter - December 2018 - 27

Closer Look At Natural Gas
Demonstrates Its Contribution
To Environment, Economy
With the Nov. 23 release of the Fourth National Climate Assessment and its dire environmental warnings came calls for an
end to fossil fuels. But such knee-jerk reactions fail to account
for the important and beneficial role of natural gas, both for
meeting most Americans' daily needs while simultaneously improving air quality. Some wrongheaded state and local policy
proposals would go so far as to prohibit direct use of natural gas
for residential space heating and other loads. So before we
march down the anti-fossil fuel road, it's worth looking at
natural gas. Where would we be without it?
Without natural gas, American food production would suffer
because ammonia requires natural gas, and fertilizer requires
ammonia, and crops need fertilizer. Many pharmaceuticals
contain natural gas as an ingredient. Natural gas is used for
baking cereal and drying fruit. Natural gas is the abundant,
efficient heat source used in the manufacturing processes for
metals, cars, textiles, chemicals and glass. These industrial operations employ millions of people and consume more than half
a trillion cubic feet of gas a year. As a natural gas pipeline
company describes, "most of the products we use on a daily
basis are derived from natural gas. From laundry detergent and
water bottles to the insulation in our homes and pretty much
every polymer and plastic in between, natural gas is a key ingredient in most of the products that make our lives as comfortable
and convenient as they are."
Yet this reliance on natural gas has not come at the environment's expense. According to a study released by the U.S. Geological Survey, also on Nov. 23, emissions from fossil fuel extraction on federal lands of the three main gases associated with
climate change declined from 2005 to 2014. For carbon dioxide,
releases decreased 6.1 percent over the 10-year period; for
methane, 10.5 percent; and for nitrous oxides, 20.3 percent.
In response to the November studies and other data from the
U.S. Environmental Protection Agency, Energy In Depth
observed, "'Keep it in the Ground' operatives continue to insist
that methane emissions from oil and natural gas systems make
natural gas worse for climate change than other major fuels.
But (recent information) thoroughly debunks that narrative.
Not only are reported methane emissions declining overall, oil
and natural gas system emissions are declining significantly."
So natural gas improves our daily lives and yields environmental
benefits. Yet some states and municipalities are considering
policies with extreme decarbonization goals that encompass
residential electrification. Under such policies, residential space
heating and other loads would be served by electric appliances.
Proponents of residential electrification claim that it will benefit
the electric grid by taking advantage of underused capacity and
may allow new electric load to be matched with anticipated renewable generation profiles. The American Gas Association
notes that these policy discussions lack a thorough analysis of
the overall costs, benefits and implications.
AGA commissioned a study to fill those gaps and found that
electrification policy measures aimed at residential gas use

"Perhaps we need Clarence, the guardian
angel from "It's a Wonderful Life." In the
span of 130 minutes, aired throughout the
holiday season, Clarence could show what

life would be like without natural gas.

could be challenged by cost-effectiveness, consumer impacts,
transmission capacity constraints of the existing electrical
system, current and projected electric grid emission levels, and
requirements for new power grid investments to meet winter's
growing peak generation demand.
AGA's study also notes that "total GHG emissions reductions
available from a policy targeting electrification of residential
heating loads represents a small fraction of domestic emissions."
In addition, average household energy-related costs-associated
with appliance and electric system upgrades and utility bills-
could increase $750-$910 a year. For the economy as a whole,
residential consumer costs and incremental power generation
and transmission costs would range from $590 billion to $1.2
trillion through 2035.
Not to be discounted, Americans prefer to cook with natural
gas, and they enjoy its reliability and affordability. Owing to
these consumer preferences, gas utilities have added 30 million
residential customers since 1970, with virtually no increases in
emissions. In 2016 alone, gas utilities helped customers reduce
12.4 million metric tons of CO2 emissions.
Rather than targeting natural gas, our country should be cognizant of its contributions. Perhaps we need Clarence, the
guardian angel from It's a Wonderful Life. In the span of 130
minutes, aired throughout the holiday season, Clarence could
show what life would be like without natural gas. And we
would come to realize that our wonderful lives owe a lot to
natural gas.
r

SUSAN GINSBERG is vice

president of crude oil and natural gas regulatory affairs for
the Independent Petroleum Association of America. She covers legislation and regulation,
focusing on the CFTC and
FERC. Her experience in natural gas regulatory affairs spans
more than three decades.
DECEMBER 2018 27

American Oil and Gas Reporter - December 2018

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