natural gas

Responsibly Sourced Natural Gas: Time to Change the Natural Gas Industry’s Narrative

Benefits of Responsibly Sourced Natural Gas

The majority of companies in the natural gas and liquefied natural gas (LNG) industry seem fixated on promoting natural gas as the clean “bridge fuel” to further deployment of renewable energy technologies. While natural gas emits far less carbon dioxide (CO2) than coal or oil used to generate power and heat, , it still is a “fossil fuel” that contributes to the adverse effects on climate. Fossil-fuel opponents are increasingly skeptical of the climate benefits reported by the US natural gas and LNG industry. These opponents often cite a  study released in April 2020 that showed methane emissions from the Permian basin of West Texas and New Mexico, one of the largest oil-producing regions in the world, are more than two times higher than federal government estimates.  

The time has come for the natural gas and LNG industry to recognize that the “bridge” for natural gas may be much shorter than previously thought.

            This author believes the time has come for the natural gas and LNG industry to recognize that the “bridge” for natural gas may be much shorter than previously thought. It’s time for the industries and individual companies to shelve slogans and take action to distinguish US natural gas from other global sources by embracing a narrative of “Responsibly Sourced Gas (RSG).” To do otherwise, increases the risk that natural gas and LNG will fall victim to the growing movement to decarbonize the heating, power and transportation sectors via an all electrification strategy. Federal and state policy makers, regulators and lawmakers could begin questioning whether US natural gas and LNG industries could even play a role in the clean energy economy envisioned by the incoming Biden Administration and evidenced by the Biden-Sanders Climate Action Plan. Read more by downloading the entire article [PDF] from the Climate & Energy Journal. [node:read-more:link]

Hydrogen: Hype or a Glide Path to Decarbonizing Natural Gas – Part 2

We continue the analysis of hydrogen which began in Part 1. This time we cover the following topics:

  • The status of efforts to blend hydrogen in the U.S. grid,
  • What hydrogen blending means for decarbonizing natural gas,
  • Regional opportunities to increase hydrogen in the U.S. and to serve Fuel-Cell Electric Vehicles (FCEV), and
  • The Disconnect between hydrogen policy and green hydrogen production shortages

Hydrogen: Hype or a Glide Path to Decarbonizing Natural Gas – Part 1

Blue Hydrogen

Existing technologies that produce blue hydrogen with carbon capture, use, and storage (CCUS) could be a bridge to widespread production of green H2, which is produced with renewable energy without carbon dioxide (CO2) emissions. By incentivizing and encouraging higher production of blue H2, which primarily uses natural gas, and green H2, the transportation sector could be decarbonized to combat the adverse effects of climate change. [node:read-more:link]

Regulatory Challenges Facing Renewable Natural Gas

Renewable Natural Gas- where are the regulators?

Why aren't state regulators getting behind renewable natural gas as they have for wind, solar and other renewable energy projects? The answer may be a one-size fits all mindset where electrification is viewed as the only solution to a successful energy transition. I'm not so sure that this is the case. The conventional wisdom is that RNG is the domain of state regulators, but a closer look at the challenges that RNG projects face shows that the FERC could reduce the costs of RNG projects wishing to interconnect to interstate natural gas pipelines. [node:read-more:link]

A U.S. Ban on Fracking: Implications on U.S. and Global Energy Security

Winners, Losers, and Impacts If a US Fracking Ban Is Enacted

Leading Democratic presidential nominees want to ban fracking “everywhere.” However, the ban may do more harm than good and adversely affect U.S. and global energy security. A U.S. fracking ban will incentivize emerging economies and high carbon emitters like China, India, and other Asian countries to turn even more to coal and heating oil to meet their power generation, heating, and cooking needs. Also, the ban will increase the costs of wind and solar projects since their components come from natural gas liquids and liquid petroleum gas derived from oil and natural gas. [node:read-more:link]

Will NAFTA Renegotiation Stop Greening of Mexico’s Power Sector?

Mexico decouples CO2 emissions with electricity generation

Today trade representatives from Canada, Mexico and the United States are meeting in Washington DC to begin renegotiating the North American Free Trade Agreement (NAFTA). Everyone is focused on jobs, competitiveness and modernizing the agreement. Few people are tuned into the environmenal side of things at this time, but they should be because of the environmental benefits. [node:read-more:link]

Use of Natural Gas Indices

How Natural Gas was priced in 2016

Recently the FERC held a technical conference on Natural Gas Indices. Back in March 2017, I was asked by the the Natural Gas & Electricity Journal to write about natural gas indices. I hope the article below will provide a good overview of the issues and stimulate discussion.

"Russo, T. (2017, August). Using natural gas price indices. Natural Gas & Electricity 34/1, ©2017 Wiley Periodicals, Inc., a Wiley company."  [node:read-more:link]

Why the Oil and Natural Gas Shale Revolution is so Resilient

Someone asked me why the North American Oil and Shale Gas Revolution didn't stall given declining oil and natural gas prices. What came to emy mind was resilency and seven other factors which taken together can explain why OPEC and Russia did not get their wish.

The most important factor is that Oil and Natural Gas can't just be looked at as a single commodity. The fact is, depending on where you drill a hole in North America's onshore shale basins, you will probably get oil and associated natural gas, natural gas and natura gas liquids (NGLs) or just natural gas. So a producer can rely on multiple revenue streams from all or a combination of these commodities or a portfolio of assets. Fortunately, each commodity's price is different and not exactly related. It also helps to have th infrastructure to process and refine these commodities and move them to markets in North America and abroad.  [node:read-more:link]

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