Natural Gas

INITIAL SETUP COSTS

• Initial setup costs are generally about $215-300 million

• Basically include processing plant, pipelines, transportation of gas, storage

LONG TERM COSTS

• Long Term Operation Costs are about $200 million per year

• Long term costs include processing, delivery of gas, storage, transportation

FACTORS IN COSTS

• During summer, gas must be pumped into the ground for storage

• The distribution of gas is through pipelines

• Gas must be found underground

AVAILABILITY

• Abundance of natural gas in North America

•Non-renewable resource

• Misconception about availability of natural gas due to high prices

• 1,190.62 Trillion Cubic Feet in the U.S.

• Natural gas reserves in the U.S. from 1990-2000 have not changed significantly

AVAILABILITY

• U.S. natural gas reserves are very concentrated around Texas and the Gulf of Mexico

• 5,210.8 Trillion Cubic Feet of natural gas reserves around the world

• 34% located in the Middle East• 42% of total world reserves in

Europe and the former U.S.S.R• Only 3% in U.S.

SHORT TERM POLLUTION• Fossil Fuel Emission Levels

• Pounds per Billion Btu of Energy Input

• Pollutant Natural Gas Oil Coal

• Carbon Dioxide 117,000 164,000 208,000

• Carbon Monoxide 40 33 208

• Nitrogen Oxides 92 448 457

• Sulfur Dioxide 1 1,122 2,591

• Particulates 7 84 2,744

• Mercury 0.000 0.007 0.016

SHORT TERM POLLUTION:What does this mean?

• Natural Gas is the cleanest of all fossil fuels• The main products of the combustion of natural

gas are carbon dioxide and water vapor, the same compounds we exhale when we breathe

• Natural gas can immediately reduce the amount of harmful chemicals in the air

LONG TERM POLLUTION• The use of natural gas can help reduce greenhouse gas

emissions, smog, air quality, and acid rain.• The use of natural gas to power both industrial boilers

and processes and the generation of electricity can significantly improve the emissions profiles for these two sectors

• According to the Department of Energy, about half of all air pollution and more than 80 percent of air pollution in cities are produced by cars and trucks in the United States

• Natural gas can be used in transportation to cut down on the high amounts of pollution from gas and diesel powered vehicles

OTHER ENVIRONMENTAL IMPACTS

• Transportation (trucks, barges) of gas may be biggest contributor to pollution.

• Increased methane production. However, a study concluded increased natural gas use strongly outweighs any detrimental effects.

• Can lessen greenhouse gases in place of other fossil fuels

• The use of natural gas to power both industrial boilers and processes and the generation of electricity can significantly improve the emissions profiles for these two sectors.

THE WORLD WITHOUT NATURAL GAS

Places without natural gas have:• Genocide• Famine• Child slaves• Blood diamonds• Evil• Soulja boy• Celine Dion

Fact: If the Titanic had used natural gas, it would not have sunk.

THE WORLD WITH NATURAL GAS

Places with natural gas have:• Happiness• Joy• Puppies• The sun• David Beckham