Natural gas is a foundation fuel that can transform our energy future – cleanly, economically, and efficiently. Today, natural gas meets almost one-fourth of the United States’ energy needs and the industry is poised for growth.
Our nation possesses a 100-year supply of natural gas. In fact, the United States now has more natural gas than Saudi Arabia has oil, making us the largest producer of natural gas in the world. Domestic dry natural gas production in the U.S. increased 27 percent from January 2006 to August 2011.
A combination of advances in drilling and well completion technologies widely deployed during the past five years has invigorated natural gas production, particularly from shale formations. These advances in technology have led to the cost-effective development of natural gas from shale formations in Texas, Louisiana, Arkansas, Oklahoma and Pennsylvania and provided new economic opportunities in 32 states. Today, gas from shale makes up 32 percent of total daily gas production and in 2035, the average daily production of natural gas in the U.S. is expected to increase 14 percent from daily levels at year-end 2011.
The American Gas Association represents more than 200 local energy companies that deliver clean natural gas to more than 65 million residential, commercial and industrial customers throughout the United States. AGA and our member companies firmly believe that our domestic natural gas resource base can be developed responsibly, thereby providing America with an abundant supply of domestic natural gas and remaining good stewards of our environment. If we develop this resource in a responsible manner, we have an opportunity to transform the energy industry and our nation’s future.
Natural gas touches nearly every segment of American life. It is the dominant source of energy for heat and hot water in residences and businesses across this country. It cooks our food, dries our clothes, fuels industry and generates electricity. The natural gas industry supports the employment of nearly three million Americans in all 50 states. There is a tremendous opportunity for consumers and our nation as a whole though greater use of natural gas.
Significant growth in domestic natural gas production is altering the energy landscape in the U.S. and we are only beginning to tap natural gas’ potential. Domestic gas production and the potential for future sustainable growth is so substantial that it has attracted attention from natural gas marketers and producers envisioning the United States as an exporter of liquefied natural gas (LNG) to markets in Europe, the Caribbean, South America and Asia.
More than half of the new electric generation capacity expected to be built in the coming decades will burn natural gas. Most of the new plants will use highly efficient combined-cycle technology, consuming less natural gas to generate electricity than traditional plants. While these highly efficient plants are being added to the system, older, less efficient gas plants will be retired, helping to offset any increase in gas demand from these new units. Even if the use of natural gas for electricity generation grows at a faster pace than expected, our abundant supply of natural gas can meet that demand.
In the transportation sector, natural gas can immediately be put to use across the country to fuel a wide range of transportation options, from fleet and light-duty vehicles to heavy-duty trucking and off-road applications. More than 50 natural gas utilities and producers have joined forces and are working alongside fleet managers and other industry players to further policies for the use of clean, domestic, affordable natural gas as a transportation fuel.
The governors of Colorado, Maine, Oklahoma, Pennsylvania, Utah and Wyoming have pledged to start replacing thousands of vehicles in their state fleets with ones that run on natural gas. Their plan is to encourage U.S. automakers to develop affordable vehicles that run on natural gas, driving demand for more filling stations and cars that run on this clean burning energy source.
The direct use of natural gas is the smarter, cleaner and more efficient choice and provides three times more useful energy to consumers than electricity. Natural gas traveling from the wellhead to burner tips in America’s homes and businesses loses only about 8 percent of its usable energy while converting natural gas or any other fossil fuel into electricity to power comparable appliances results in the loss of 68 percent of its usable energy. The size of the average American home has increased by more than 50 percent since 1970, yet during that same time period natural gas consumption has gone down by 40 percent per household. This is due to more efficient gas appliances and more efficient homes.
Natural gas is available now to reduce our dependence on foreign oil. Combining abundant supplies of natural gas with the entire energy portfolio of wind, solar and nuclear creates an entirely new playing field for the U.S. economy. Natural gas, our country’s foundation fuel, is well positioned to serve as a reliable, secure and clean energy source for U.S. homes, businesses and industries for decades to come.
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