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Natural Gas

Matania kapaya
Dennis R. Wilson
Econ 2010
08/04/2016

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Natural Gas

Natural gas is one of the cleanest, safest, and most useful forms of energy in our day-to-day
lives. The gas is a hydrocarbon, a mixture of compounds of hydrogen and carbon. The simplest
hydrocarbon is methane; it contains one carbon atom and four hydrogen atoms.In the past year Natural
gas has been the economy sustainer even though
This is found by itself or in blended with oil. It is both colorless and odorless and is in fact a
mixture of hydrocarbons (Prepared for the National Association of Manufacturers, 2016).
When excreted out of the ground its a combination of water, oil, Sulphur, carbon dioxide,
nitrogen, and other impurities. These impurities are removed before the natural gas is delivered to our
homes and businesses. Statistic shows that natural gas is inflammable and burns more cleanly than some
other energy sources. It helps strengthen its position as one of the most highly used energy sources.
According to the National Association of Manufacturers natural gas can be measured in a variety of
ways, though the most common unit of measurement is the Gigajoule (GJ), this (Prepared for the
National Association of Manufacturers, 2016)signifies
one billion joules, the metric measure for heat or energy
(Prepared for the National Association of Manufacturers,
2016).
Usage
Different from other fuels, natural gas can be used for
different purposes. According to my research, natural gas
can be used to operate various household appliances, including stoves, clothes dryers and fireplaces.
Most residential consumers use natural gas around the home for furnaces and hot water tanks. This is
because its less expensive and safe.

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Small and large commercial enterprises such as schools, office buildings, use natural gas. As with
residences, these enterprises are also beginning to use natural gas for on-site electricity generation as an
economical alternative to purchasing electricity off-site.
In industries, it has numerous uses in the petroleum
refining, metal, chemical, plastic, food processing, glass and
paper industries.Due to its low costsn industry say it is is
enough to power a large retail facilities. The fact that natural
gas is one of the cleanest, cheapest, and most efficient
sources of energy makes it easy for anyone to use it. (Albertas Natural Gas, 2008).
Transportation
Natural gas is transported in pipes. The transportation of natural gas from a gas well to our
homes and businesses requires an extensive network of interconnected pipelines, designed to move
natural gas quickly and effectively, sometimes over great distances. The pipeline system moves the
natural gas from the point of origin to areas of high consumer demand. There are essentially three main
types of transportation pipelines: gathering pipelines, transmission pipelines, and distribution pipelines.
To my understanding these all channels contribute to the transportation and distribution of the gas to all
types of consumers.
Natural Gas Users
The U.S. Energy Information Administration (EIA) reports that, over 24.4 trillion cubic feet of
NG was delivered to consumers in 2014. Natural gas consumption is typically classified into five main
categories of end users. Many industries use NG as a fuel or a feedstock for production, with
approximately 80% of total industrial demand for NG coming from the manufacturing sector. The
remaining 20% comes from other industrial activities, such as agriculture, construction and mining. Our

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U.S. Industrial Gas Demand report identified four ways that Industrial end users of NG are the secondlargest consumers of natural gas, using 7.6 million MMcf in 2014.
The industrial sector accounted for 31% of consumption of delivered NG in the US in 2014. Just
like any product growth in industrial use of NG has been slower than most other end-use categories.
Industrial gas consumption had declined over two decades as a result of increasing energy efficiency,
high gas prices in the years before the shale gas revolution, and slow growth in industrial production for
the most gas-intensive industries, many of which were hit hard by the Great Recession. Despite that
natural gas is currently showing signs of stabilization (Natural Gas Consumption by End Use, 2015).
According to Natural Gas Consumption by End Use, Demand Growth Abundant low-priced NG
is pouring a massive ongoing and upward shift in NG demand. Low prices together with new
environmental regulations are resulting in the fall of a significant number of coal-fired power plants,
many of which will be replaced by gas-fired capacity (Natural Gas Consumption by End Use, 2015).
While natural gas cannot be shipped around the world in pipes due to the impracticality of
building pipes across the ocean, liquid natural gas is gaining a foothold in the marketplace. The Gas
Technology Institute (GTI) released a report showing that the cost of producing liquid natural gas has
dropped by as much as 50%, virtually debunking the belief that it is too expensive to be a viable
alternative. This makes the option of importing and exporting natural gas more common in a world that
needs new forms of energy besides crude oil (DraKoln, 2016). I believe this is a promising development
in the American economy. Shelly K. Schwartz a repoter at CNB, supports that the discovery of oceans of
natural gas in North America shows massively cheaper source of energy, the creation of hundreds of
thousands of new jobs, a meaningful reduction in global warming, a much diminished balance of
payments deficit, a far stronger dollar, a jump in the profits of the electric utilities, who will then raise

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their cash dividend payouts, which will benefit widows and orphans as well as giant pension funds, and
cause the gold bugs lasting anguish (Schwartz, 2012). This will make America great as usual!
It may not be the publics interest quite like finance or information technology, but it could just
save the U.S.
Economic Impact
Indeed, the natural gas industry supports some 2.8 million jobs either directly through
companies engaged in exploration and drilling or indirectly through manufacturers that use the fuel as a
raw material, according to the American Gas
Association.
The real potential for economic impact, however,
lies in the vast reservoirs of shale gas that are
newly accessible through hydraulic fracturing.
Like most commodities, natural gas has been
prone to dramatic price swings for decades, creating cost uncertainty for industries that rely on such fuel
as an energy source or feedstock.
As a result of current excess supply, however, the price of natural gas in America has fallen
dramatically to about $2.20 per thousand cubic feet (mcf), a quarter of its record high of $8.86 in 2008.
With the aid of the chart below we will see the pontential increase of natural gass supply for exportation
(Prepared for the National Association of Manufacturers, 2016).

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Natural gas is produced along with coal and oil beds. It is found deep inside the earth and drilled in same
way was oil. It is cheaper and cleaner than gasoline and produce less greenhouse emissions than its
counterparts. It burns completely and can be safely stored.
Natural gas can be used in the form of compressed natural gas (CNG) or liquefied petroleum gas (LPG).
Disadvantages of Natural Gas
Despite the benefits and incredible usage of natural, we do see potential danger when it goes wrong.
Leaks of natural gas are tremendously dangerous. Such leaks may cause explosions or fire. When
inhaled, the gas is highly toxic. The main danger is that it is odorless and leaks cannot be detected unless
some odorant has been added to the gas. It is for this reason that residentially used gas is suffused with
odorants, that in the event of a leak, detection is easy and appropriate actions can be taken. In the case of
an underground leak, we are helpless as odorant becomes weaker and the gas leak goes undetected.
Burning of natural gas also releases carbon dioxide, carbon monoxide and other carbon compounds
which are greenhouse gases that cause global warming and climate change. Even though it is cleaner
than oil or coal as far as its by products are concerned, leakage of natural gas can have serious
consequences as methane is more toxic than carbon dioxide. Like all fossil fuels, natural gas though

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found in abundance is non-renewable and hence likely to be exhausted at some point of time. It is not a
long term solution to our energy problems (Tverberg, 2014).

US natural gas production leveled off in 2013, because of the low level of US natural gas prices.
From 2010 to 2012, there was growth in gas production in Pennsylvania in the Marcellus, but many
other states, including Texas, saw decreases in production. In early 2014, natural gas prices have been
higher, so natural gas production is rising again, roughly at a 4% annual rate (Tverberg, 2014).
The infrastructure for natural gas production and distribution is fairly expensive. This includes
separate plumbing systems and specialized tanks. Natural gas when used as a fuel in vehicles provides
less mileage than gasoline.
In spite of disadvantages, the entire process of producing, transporting and making use of natural
gas provides an energy efficiency which is best among all fossil fuels. It proves to be less harmful to
environment when it comes to pollution. It may not last forever but as of today it is the most popular
energy source.

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References
Albertas Natural Gas. (2008, October). Albertas Natural Gas. Retrieved from NaturalGas
Brochure: http://www.energy.alberta.ca/NaturalGas/Gas_Pdfs/BrochureHUB.pdf
DraKoln, N. (2016). Commodities: Natural Gas. Retrieved from INVESTOPEDIA:
http://www.investopedia.com/university/commodities/commodities12.asp
Lenzner, R. (2015, July). U.S. Energy Information Administration. Natural Gas
Consumption by End Use. Accessed July 2015. Retrieved from Fobes:
http://www.forbes.com/sites/robertlenzner/2012/08/21/the-exquisite-symmetry-ofthe-natural-gas-revolution/#314f44f94a15
Natural Gas Consumption by End Use. (2015, July). Natural Gas Consumption by End Use.
Retrieved from U.S. Energy Information Administration:
http://www.forbes.com/sites/robertlenzner/2012/08/21/the-exquisite-symmetry-ofthe-natural-gas-revolution/#314f44f94a15
Prepared for the National Association of Manufacturers. (2016, May ). Prepared for the
National Association of Manufacturers. Retrieved from Development on the
Manufacturing Sector: http://www.nam.org/Data-and-Reports/Reports/Natural-GasStudy/Energizing-Manufacturing-Full-Report/
Schwartz, S. K. (2012, Jun 20 ). Can the Natural Gas Sector Save the US Economy.
Retrieved from CNBC: http://www.cnbc.com/id/47280026
Tverberg, G. ( 2014, August 25). Update on US natural gas, coal, nuclear, and renewables.
Retrieved from Exploring how oil limits affect the economy:
https://ourfiniteworld.com/2014/08/25/update-on-us-natural-gas-coal-nuclear-andrenewables/