Natural Gas

With a new president in office, who’s energy policy seems to indicate he will favor natural gas development, a new study by the American Clean Skies Foundation and Navigant Consulting takes on a new importance.

The study indicates that there is enough undiscovered, yet recoverable reserves of natural gas to last, at the current rate of consumption, about 118 years.

“This is a positive new development and demonstrates that natural gas will be a key component of supply to met future demand,” says Independent Petroleum Association of America chief executive Barry Russell. “The findings also show that natural gas can play a significant role in a long-term compliance strategy to address global climate change.”

Russell says that exploration costs are increasing, unconventional sources–such as shale gas, tight sands and coalbed methane–are booming around the country, despite the current economic crisis. He adds that new technologies are helping produce more natural gas from fields that were once thought mature and uneconomic.

U.S. natural gas production increased 6.4% during 2007 as a direct result of independent producer development.

Natural gas currently meets 25% of the nation’s energy needs,is used to heat about half of U.S. homes and fuels 20% of America’s power needs. It is also a key feedstock for numerous products.

“The United States has the capability and the most stringent regulations in place for the safest, most environmentally friendly production on the planet,” Russell says. “As further proof surfaces on the tremendous supply resources beneath our land and beneath our oceans, it is time for policymakers to take the lead and embrace the power and potential of American natural gas.”

Stay tuned. More to come. Even though all eyes in D.C. are on the economy, there is enough buzz around now to hopefully draw their attention back to the energy issues facing the nation. The story is still developing and it will be interesting to see how President-elect Obama handles this issue.

–John A. Sullivan, News Editor, Oil and Gas Investor, www.OilandGasInvestor.com, jsullivan@hartenergy.com

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