The Natural Gas Revolution: Good or Bad for Energy Efficiency?

If there were an equivalent in the energy industry to Time Magazine’s Person of the Year, natural gas would be this year’s winner.

The dramatic rise in natural gas supply, and fall in price, has reconfigured the energy scene in the United States, suddenly creating a bounty of domestic energy, driving down wholesale power prices and speeding retirement of polluting coal-fired plants.

Veteran energy insiders have told me in recent interviews that they never expected in their lifetime to see this kind of rapid market shift.

So what does the natural gas bonanza mean to energy efficiency — another resource creating surprising changes in the electric grid?

Typically, when energy gets cheap consumers stop thinking about efficiency. But the American Council for an Energy-Efficient Economy sees a different scenario emerging this time, according to two reports released by the Washington, DC-based organization in September.

First, it’s important to note that energy efficiency is not just something done in the household or office. It’s managed on a large scale by utilities and grid planners and often now competes head-to-head with power plants as a means to keep the lights on. So when an area of the country needs more power, it might build a new gas-fired power plant, install wind turbines or solar, or some other kind of power generator. Or it might inject more energy efficiency into the system by way of energy saving technologies, programs or incentives.

Many factors go into deciding which will be selected, but price ranks high. And despite the fall in natural gas prices, energy efficiency remains the lowest cost resource on the electric grid — it’s still cheaper to save energy than to build new power plants, according to the ACEEE white paper “Saving Money and Reducing Risk: How Energy Efficiency Enhances the Benefits of the Natural Gas Boom.”

Natural gas and energy efficiency tend to be in competition with each other – because they are the cheapest resources — but the two also can foster each other, according to the white paper.

Here’s why.

Historically natural gas has been prone to sudden supply disruptions and price spikes. ACEEE quotes Jim Rogers, chairman, president and CEO of Duke Energy famously saying: “There are three things in life you can depend on: death, taxes and the volatility of natural gas markets.”

The sudden price spikes wreak economic havoc for homeowners who heat with natural gas, as well as manufacturers that use it in industrial processes, and utilities that generate electricity with it.

But energy efficiency helps smooth the sudden peaks and valleys of natural gas pricing. Energy efficiency reduces demand for natural gas and therefore elongates its supply, says ACEEE. In fact, energy efficiency could reduce energy demand 42 to 59 percent by 2050, according to a separate ACEEE study.

That’s one way the marriage of natural gas and energy efficiency work.

Another involves combined heat and power plants, which are highly efficient generating plants that recycle the waste heat created in power production for useful purposes. Also known as CHP, it is considered an underutilized resource in the US and is often championed by energy efficiency advocates.

President Barack Obama recently set a goal to increase CHP use about 50 percent by 2020. Low natural gas prices should help achieve this goal, since many CHP plants — more than half installed since 1990 — use natural gas as fuel. Cheap natural gas makes CHP more economical.

ACEEE sees CHP plants as good replacement for the large number of coal-fired plants now retiring. In fact, the organization says that CHP could replace all of the retiring plants at a highly competitive cost, about 6 cents/kWh. By comparison a new conventional power plant cost 6.9 cents/kWh to 11.3 cents/kWh.

“Our report suggests that instead of investing in new centralized power plants, utilities should invest in new CHP plants to keep costs down for their customers and generate much cleaner electricity,” said Anna Chittum, the report’s lead author. “Utilities around the country have expressed concern about the amount of coal-fired capacity they believe they will need to retire in the near future. Many are asking for substantial increases in customer rates to pay for new investments in traditional power plants when they could be investing in CHP instead.”

The two ACEEE reports can be found here.

Elisa Wood is a long-time energy writer. Subscribe to her free newsletter at RealEnergyWriters.com.

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New ARPA-E Projects to Boost Natural Gas Vehicle Technologies

A refuse truck powered by compressed natural gas in Washington state.
Credit: Western Washington Clean Cities

The Energy Department on July 12 announced $30 million in funding for 13 research projects designed to find new ways of harnessing natural gas supplies for cars and trucks. Researchers in California, Colorado, Connecticut, Illinois, Michigan, New York, Texas, Washington, and Wisconsin will work on the initiative. The grants are made through the Energy Department's Advanced Research Projects Agency – Energy (ARPA-E). The projects are part of Methane Opportunities for Vehicular Energy, which aims to engineer lightweight, affordable natural gas tanks for vehicles and develop natural gas compressors that efficiently fuel a natural gas vehicle at home.

Today's natural gas vehicle technologies require tanks that can withstand high pressures. They are often cumbersome, and are either too large or too expensive to be suitable for smaller passenger vehicles. ARPA-E's new projects are focused on removing these barriers, which will help encourage the widespread use of natural gas cars and trucks. For example, REL, Inc. in Calumet, Michigan, will receive $3 million to develop an internal "foam core" for natural gas tanks that allows tanks to be formed into any shape. This will enable higher storage capacity than current carbon fiber tanks at one-third the cost.

The projects will also focus on developing natural gas compressors that make it easier for consumers to re-fuel at home. The Center for Electromechanics at the University of Texas at Austin will use $4 million to develop an at-home natural gas re-fueling system that compresses gas with a single piston. Unlike current four-piston compressors, these highly integrated single-piston systems will use fewer moving parts, leading to a more reliable, lighter, and cost-effective compressor. See the Energy Department press release and the complete list of projects .

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Chevron natural gas discovery offshore Australia

Chevron reported a natural gas discovery by Australian subsidiary in the Exmouth plateau the Carnarvon basin, offshore Western Australia.

Gas found well about 243 feet (74) of the net pay of the satyr-3. The fountain located 113 miles (182 km) North of Exmouth in the approval WA-374-P and was of water to a depth of 13.369 (4.075 m) in 1.124 3.688 m drilled.

"Satyr 3 of our is thirteenth offshore discovery in Australia since mid-2009," says George Kirkland, Vice President, Chevron Corporation.

"This latest discovery the quality and lasting value strengthens our Australian exploration of leasing companies in the Carnarvon basin."

Chevron Australian subsidiary is the operator of the area permit WA-374-P and holds a 50 per cent, with Exxon Mobil and shell each hold 25 per cent.

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Natural gas industry pins hopes on coal the decline

By Simone Sebastian
Houston Chronicle

The haste that promises a century the nation energy with heating oil supply drilling natural gas is a critical element is missing:

Demand.

Technology that buried fossil fuels allows a hole has frenzy in Slate rock regions, including North Texas Barnett Shale, pushing the supply of natural gas at a record high and its prices to sinus of cavernous lows drills on tight. But consumer desire for fuel have slowed down heat energy-efficient buildings and a mild autumn in the North.

"There is a lot of gas in the market now, to go but not many places," said Bruce McDowell, Director of policy analysis for the American Gas Association.

Increasingly, industry observers say, is the most promising cure for the glow of the waning popularity of coal. The Federal push to limit emissions has search utilities for low-cost alternative to traditional coal-fired plants.

"We have to find a way, use to increase for natural gas," said McDowell. "Power generation is the obvious choice."

Since 2008 the price of natural gas decreased thermal Friday units on $3.11 at close of trading from its high of $13.58 per million British. Natural gas undertakings include chills on December demand and prices drive.

But this year the cold weather season started with a record high supply of natural gas in the market, while heating needs have remained so far low, Alan Lammey said energy markets, lead analyst for WeatherBell analytics.

The circumstances are not isolated. The United States on natural gas heating for years, cooling was as offices and homes more energy efficient.

The number of oil rigs in the North American gas fields has fallen 14 percent last year dropped to 802, according to Baker Hughes, the rig is tracked. But there are signs that gas at the dawn of a golden age.

Political pressure is driving power generators burn cleaner to look at natural gas as an alternative to coal.

Chevron natural gas discovery offshore Western Australia

Posted at: December 15, 2011

Chevron reported a natural gas discovery by Australian subsidiary in the Exmouth plateau the Carnarvon basin, offshore Western Australia.

"Find Vos-1 of our Zwolfter offshore discovery in Australia since mid-2009," said George Kirkland, Vice President, Chevron Corporation.

"Our successful drilling program offshore Western Australia shows Chevron global exploration."

Vos-1 is also about occurred 453 feet (138) net gas pay. Located the well was drilled 1484 meter of water in the field permit WA-439-P about 186 miles (300 km) of Exmouth on the western coast of Australia, in 4869 to a depth of 12.461 (3798m).

"Our ongoing exploration success of our Australian raw materials base further underpins our drive as a leading supplier of liquefied natural gas markets and gas to Western Australia, to", said melody Meyer, President, Chevron Asia Pacific exploration and production.

Chevron Australian subsidiary is the operator of WA-439-P and holds a 50 per cent, with shell development (Australia) Pty Ltd holds the remaining 50%.

Written by Richard Price, editor, energyme.com. Follow energyme.com on Twitter @ Energyme. Information provided by companies or PR agencies, are responsible for the content. Send press releases in Word format to richard@energyme.com

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Iraq natural gas joint venture gets final approval

The Iraqi Cabinet approved with Royal Dutch Shell and Mitsubishi Corporation, formation of joint ventures to the raw gas from three large oil fields to collect an agreement.

The joint venture, Mitsubishi Corporation, 51% of Iraqi South gas company, are called held 44% of shell and 5% Basrah gas company (BGC) and come together is raw gas that is currently due to lack of infrastructure, flared to collect it.

Shell offers project management and technical expertise with the intention that learn and step-by-step key positions in the management of the company take over development of our Iraqi employees to facilitate.

"Recording this gas is a reliable energy supply for the Iraq while reducing greenhouse gas emissions," said shell Chief Executive Officer Peter Voser.

"This sends a positive signal about the investment climate in the country."

The joint venture collect and process raw gas from the fields of Rumaila, Zubair and West world's largest 1 and Majnoon, in the southern part of the country. The primary market for the gas is Iraq, but any surplus can potentially be exported.

Some 700 million standard cubic feet of gas is currently burned every day in the South of Iraq. At current prices is the gas valued at approximately $1.8 billion per year.

Burning created it, how much per year than 3.5 million cars greenhouse gases.

In September 2008, shell signed a preliminary agreement with the Iraqi Ministry of oil for a gas project collect. The agreement established the commercial principles: a joint venture between shell and the South gas company. An official signing of the agreement is scheduled in the near future.

In the Iraq shell, the operator of the Consortium is providing technical assistance in the development of the Majnoon field.

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Gladstein, Neandross & Associates Announces New Conference Dedicated to Natural Gas in High Horsepower Applications

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SANTA MONICA, Calif., Oct. 3, 2011 /PRNewswire/ -- National environmental consulting firm Gladstein, Neandross & Associates (GNA) today announced a new conference, "HHP SUMMIT 2012 - Natural Gas for High Horsepower Applications," dedicated to examining the tremendous environmental benefits of natural gas as a fuel for equipment used in rail, marine, mine, construction, power generation and other high horsepower industrial applications.  Increased natural gas availability, accessibility, and mobile fueling options have recently expanded opportunities for use of natural gas in these sectors and other remote (non-pipeline) operations.  The inaugural HHP SUMMIT will review these topics over a two and a half-day event October 24-26, 2012 in Houston, Texas including general and breakout sessions, a tradeshow, networking opportunities and an off-site tour.  

Encana Natural Gas Inc. (Encana) and Pivotal LNG, a subsidiary of AGL Resources Inc., have signed on as Presenting Sponsors of this event.  Encana is a charter member of America's Natural Gas Alliance (ANGA) and the second largest producer of natural gas in North America.  Pivotal LNG is a management company focused on acquisition, development, and operation of liquefied natural gas assets in conjunction with AGL's overall growth strategy.  These Presenting Sponsors have collaborated to provide conference attendees with information with an in-depth look at the significant cost savings and environmental benefits that are possible by switching to natural gas from diesel in high horsepower applications.  

Encana Executive Vice President Eric Marsh stated, "We have seen firsthand the tremendous benefits of running our own company's high horsepower equipment on natural gas and this event provides a unique opportunity to share our experiences and help others to reduce their operating costs, environmental footprint, and reliance on imported petroleum products.  Encana's support of the HHP SUMMIT confirms our own commitment towards utilizing natural gas in as many facets of our operations as possible and we look forward to sharing the positive results of our experience."

Summit attendees will learn from an array of international industry experts about the technologies, equipment and pending regulatory changes that may affect the many industries using high horsepower equipment. The summit will also examine the synergies that are presented across these various applications, particularly in terms of LNG fuel supply.

"The content to be covered at the HHP SUMMIT is exactly where we see tremendous growth potential in the natural gas sector," stated David Schultz, vice president, Pivotal LNG.  "It is exciting to see the innovation in an increased range of high horsepower equipment and technologies that enables us to fully utilize our plentiful domestic supply of clean natural gas."

The use of natural gas as a replacement for conventional diesel fuels in vehicle applications has been gaining ground in the U.S. and around the world for more than a decade. In high mileage and high fuel use applications such as over-the-road trucking, refuse and transit, significant cost savings are being realized in relation to the volume of diesel fuel being replaced with cleaner burning and lower cost natural gas. The use of natural gas in place of diesel in high horsepower applications presents an even more scalable opportunity to recognize operational cost reductions, near-immediate payback periods and environmental benefits.

For more information about the HHP SUMMIT, contact GNA at 888-993-0302 or visit www.hhpnaturalgas.com.

About Gladstein, Neandross & Associates

With headquarters in Santa Monica, Calif., and in New York, New York, Gladstein, Neandross & Associates (GNA) is one of the nation's leading environmental consulting firms specializing in emission reduction, energy and transportation policy, carbon management, and market development for clean, alternative fuel and efficient vehicle technologies.  As part of its comprehensive suite of consulting services, GNA offers nearly two decades of experience developing and managing clean energy related conferences, events and other outreach programs that have brought together thousands of attendees and industry leading speakers at venues across the United States.  www.gladstein.org

About Encana

Encana is a leading North American natural gas producer that is focused on growing its strong portfolio of natural gas resource plays in key basins from northeast British Columbia to Texas and Louisiana. By partnering with employees, community organizations and other businesses, Encana contributes to the strength and sustainability of the communities where it operates. Encana common shares trade on the Toronto and New York stock exchanges under the symbol ECA.  www.encana.com

About Pivotal LNG

Pivotal LNG, a wholly owned subsidiary of AGL Resources (NYSE: AGL), sells liquefied natural gas (LNG) as a substitute fuel for transportation and other mechanical uses in the wholesale LNG market.  www.pivotalenergydev.com

About AGL Resources

AGL Resources (NYSE: AGL), an Atlanta-based energy services company, serves approximately 2.3 million customers in six states. The company also owns Houston-based Sequent Energy Management, an asset manager serving natural gas wholesale customers throughout North America. As an 85-percent owner in the SouthStar partnership, AGL Resources markets natural gas to consumers in Georgia under the Georgia Natural Gas brand. The company also owns and operates two high-deliverability natural gas storage facilities: Jefferson Island Storage & Hub near the Henry Hub in Louisiana and Golden Triangle Storage in Texas.  www.aglresources.com

CONTACT:  Anne Hellwig
310-573-8558
anne@gladstein.org

SOURCE Gladstein, Neandross & Associates

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Iraq sign initial deal to tap natural gas

Baghdad (AP) - an oil executive Royal Dutch Shell PLC and the Japanese Mitsubishi Corp. an initial deal with the Iraq to tap natural gas in the South of the country have signed, said Tuesday pulled to develop the latest push-to Iraq energy due to years of neglect and war affected.The deal, which Iraqi officials said a value between $12 billion to 17 billion dollars, is a joint venture company, to collect, process and market natural gas in the oil rich province of Basra. It is considered an important part of the strategy of the Government to generate electricity in a nation boost where chronic power outages resulted in times of violent protests.

Shell Vice President for the Middle East and North Africa Mounir Bouaziz told the associated press, the business in Baghdad have been signed and would be sent to the Cabinet for final approval.He did it, not immediately provide information and Iraqi officials for comment available were.In contrast to other energy deals, 2003 signed Iraq with international energy companies since the US-led invasion, deal behind closed doors was signed on Tuesday. The oil Ministry first the media invited on Monday, but later said that the signing ceremony was postponed. No explanation was specified for the change in the plan.The joint venture is called Basra gas company.

Iraq is one of 51 percent of the shares hold, Royal Dutch Shell 44 percent and Mitsubishi-5 per cent-Anteil.Die signing marks an important development in a project that has been bogged down in legal questions since Iraq and shell has signed memorandum of understanding in September 2008.Iraq burns from almost half of the 1.5 billion cubic meters per day of gas produced and the 25-year development deal at the country's help would capture more than 700 million cubic metres per day of gas from three southern oil fields. The land is undeveloped gas reserves, the world's fourth-largest reserves of conventional crude oil and 126.7 trillion cubic meters proved.In a brief statement after the signing, Elaibi, "major changes" at the draft deal based made on recommendations of Iraqi experts and three international legal company said Iraqi oil Minister Abdul-Karim. It not work."But the project can still said in Schwierigkeiten.Energie Committee of Parliament, approved the project of legislators, not the Cabinet must be."

"It must be covered by a law and approved by the Parliament are not the Cabinet according to the law," said the Committee Chairman, Adnan al-Janabi, AP.Al-Janabi added that his Committee work ban the Government from signing no new oil or gas contracts, to a long delayed hydrocarbons is adopted.Since the 1990s Iraq, sitting up on the world's fourth-largest proven reserves of conventional crude oil billions trying to rebuild of the dilapidated power grid. Area together with the vital oil sector, was drawn by years of wars and sanctions affected and Iraqis to overthrow, even years after the US-led invasion in 2003 to Saddam Hussein getting only between five to seven hours per day

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EU urges Azeri natural gas

(BAKU, Azerbaijan, may 27, UPI)-A uniform system for supplies of natural gas from dispel the Caspian region energy security could help, said a European official in Azerbaijan.

Azerbaijan has some of the richest natural gas deposits in the world. Baku promotes for the access to the gas reserves are Russia and members of the European Union.

Roland Kobia, who said the head of the delegation of the EU to Azerbaijan, a unified system of both regions help could the trend news agency reported.

"It would be best to create a uniform infrastructure which would enable transport of large quantities of gas to European markets," he was quoted words.

EU energy Commissioner Gunther Oettinger is expected in Baku in early June. His trip coincides with major signing ceremonies for the vaunted Nabucco natural gas pipeline in Turkey expected.

Nabucco is part of the so-called Southern corridor transit networks meant to break the Russian grip on the European energy sector. Moscow, lobbying is now for his South stream natural gas pipeline to Europe.

Oettinger said at a meeting in Brussels with Russian officials of this week South stream "not our top priority.",

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Allentown pipeline explosion animated make natural gas

A fiery natural gas explosion in Allentown, Pennsylvania, is the latest in a series of fatal accidents that have raised concerns about a form of energy had a good safety record until recently. By Matt Rourke, AP

A firefighter inspected following a fatal explosion in a residential area in Allentown, Pennsylvania, on Thursday.

By Matt Rourke, AP

A firefighter inspected following a fatal explosion in a residential area in Allentown, Pennsylvania, on Thursday.

Five bodies were found Thursday after a gas explosion at 10: 45 am Wednesday working-class residential area shaken.The fire burned along the road until the pipeline has been switched off, says Allentown fire chief Robert Scherer.Transport of natural gas by pipeline the safest way to move the energy ", says Carl Weimer, executive Director of the pipeline safety trust, an advocacy group in Bellingham, Washington" yet every nine and ten days on average someone dead or ends in the Hospital of these pipelines. More security needs to be done, ", he says."A 4-month-old baby and a few in the 70's included the death toll in Allentown. Nearly 50 buildings were damaged and over 500 people evacuated.The explosion comes in the wake of the worst natural gas pipeline disaster in a decade - an explosion and fire in San Bruno, California, September 9, the eight people killed and 38 houses destroyed.Early results joined the San Bruno accident with problems in the pipeline, built in the 1950s and 1 for the cause of the accident San Bruno electrical problems in the wider pipeline System.Das National Transportation Safety Board will hold hearings in March.Contains the string of natural gas explosions since the accident San Bruno: • Fairport, Ohio Nine buildings were destroyed and others damaged in this small town on Lake Erie near Cleveland, if a natural gas line Jan. 24 malfunction and houses with gas filled. Inhabitants were evacuated and survived. • Philadelphia. A gas line explosion killed an employee of the city-owned gas company, six injured and cars and buildings flattened Jan. 18. • Wayne, Michigan two furniture shop employees were killed and the owner seriously injured 29 in suburban Detroit Dec if apparently the gas pipeline explodes.Also, a fire Texas killed a worker Tuesday at a gas plant in Mont Belvieu, close to Houston. The cause is not known.San Bruno City Manager Connie Jackson says officials and citizens must be aware of the extraordinary potential danger in the infrastructures of modern life.Cities need to get involved where pipelines are located and maintained as you. "If you could predict, it could prevent", says Sie.Es is to be the best prepared just in case, says Sie.Die nation has more than 2 million miles of natural gas lines on streets, neighborhoods, and farms. The interstate highway system is compared to 47,000 Kilometer.Das gas system has two basic parts: • high pressure transmission lines, the large quantities of natural gas in a straight line. • low moving pressure distribution distributed lines like cobwebs in cities and town, connecting homes and businesses.San Bruno explosion was by a 32-inch transmission line owned by Pacific gas and energy causes. The cause of the explosion Allentown was not yet determined, but the local utility says the area of a low-pressure distribution line was connected.Natural gas pipeline accidents caused a death or injury, which require hospitalization: source: Department of TransportationIt's unclear whether the recent accidents are part of a major trend by bad weather or a pipeline system causes aging.Despite the accident says "Extremely safe gas", executive Vice President of the American public Gas Association, a group of State Gasunternehmen.Die largest cause of accidents is Dave Schryver excavations, gas lines, disturbing, although ice problems cause corrosion and faulted devices is according to the Transport Department, regulates the pipelines.The pipeline safety Act 2002, passed after terrorist attacks of Sept. 11, 2001, was the first attempt in the years to improve pipeline safety. Added to these inspections on the spot for the first time, says Weimer.Normen have been improved in 2006, Congress could tighten rules this year again, when the law for the renewal, Weimer says.The number of pipeline accidents involving death or hospitalization varied between 30 and 60 a year in the past decade with officials enforce fewer problems in the last Jahren.Staatliche safety, get federal financial aid if you follow recommended federal standards.Visit our FAQ's for more information about reprints and permissions. Corrections and clarifications to register, contact standards editor Brent Jones. For consideration of publication in the newspaper, send comments to letters@usatoday.com. Include name, phone number, city and State for review. To view our corrections, go to Corrections.usatoday.com.We the conversation guidelines updated. Changes include a brief overview of moderation process and an explanation on using the "report abuse"-button. Read more.

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