September 2011

FAC T S H E E T

Why Natural Gas?

The responsible development of this safe, plentiful, affordable and environmentally responsible energy resource can do more than create jobs, improve living standards and drive economic growth here in the United States. It can contribute to a healthier environment and higher quality of life in America and throughout the rest of the world. While there are many solutions that can help meet our energy needs into the future, natural gas and its benefits are available now. The vast supplies made available by new cutting-edge uses of technologies stand ready to fuel our economy for several generations.

Natural gas is an abundant U.S. fuel resource and its available right now
The U.S. Department of Energy estimated total U.S. natural gas reserves and resources to be approximately 2,500 trillion cubic feet (TCF), representing over a century of supply. Worldwide, recoverable natural gas resources are estimated at about 34,000 TCF. At the current consumption level of 107 TCF per year, the conventional resources would yield more than 300 years of supply. The Baker Institute for Public Policy calls the emergence of shale gas perhaps the most intriguing development in global energy markets in recent memory, arguing that the rapid growth in North American production has dramatically altered the global natural gas market landscape.
Acres
7 6 5 4 3 2 1 0

Acreage Requirements for Electricity Production

To produce the fuel and generate enough electricity to serve 1,000 households for one year

0.3
Natural Gas

0.4
Coal

0.8
Biomass

1.2

Nuclear

Wind

Solar

Natural gas is cleaner than coal and better for the environment
Burning natural gas results in very low emissions of nitrogen oxides and sulfur dioxide reducing acid rain and smog and virtually no emissions of mercury or particulates (soot). From fuel production through conversion, efficient natural gas power plants produce half the carbon dioxide emissions of coal-fired plants. A June 2011 MIT study found substitution through increased utilization of existing combined cycle natural gas power plants provides a relatively low-cost, short-term opportunity to reduce U.S. power sector CO2 emissions by up to 20 percent, while also reducing emissions of criteria pollutants and mercury. Natural gas-fired power plants use about 60 percent less water than coal plants and 75 percent less water than nuclear power plants for the same amount of electricity production. Natural gas-fired power plants require the least amount of land versus other new power generation options compared to natural gas, it takes 20 times more land to power the same number of homes using wind or solar and four times more for nuclear power (source R.W. Beck and Black and Veatch).

Natural Gas has the smallest footprint of any energy source

Source: R.W. Beck and Black and Veatch for NGSA

Pollutant Emissions From Generating Electricity

Tonnes per year per thousand households Wood Coal Natural Gas Nuclear & Renewables

SO2 NOX PM VOC

2.8 28.0 2.7 5.6

Most

5.0 3.4 0.9 0.2

Middle

0.2 0.3 0.0 0.0

0.0 0.0 0.0 0.0

None

Source: R.W. Beck for NGSA

Natural Gas is clean burning

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Natural gas is an affordable energy source for consumers and manufacturers
New drilling and development technologies have made shale gas production economic at lower prices and have increased supply dramatically, decreasing and stabilizing prices. Average wellhead prices for natural gas in the U.S. fell by 35 percent from 2006 to 2010, coinciding with an almost 400 percent increase in shale gas production over the same time period. At a $5/million British thermal unit price, natural gas-fired power plants are the least expensive source of new power supply, almost 40 percent less costly than coal, 45 percent less than wind and 50 percent less than nuclear power. Natural gas liquids, or NGLs, are extracted from natural gas and are used for heating and cooking, as well as a key feedstock in manufacturing consumer goods, such as bottles, clothing, electronics, detergents, paint, fertilizer, adhesives, carpet, furniture, diapers, tires and toys. Natural gas fuels over 20 percent of the electrical power in the U.S., second only to coal. More than 85 percent of new electrical generation capacity built in the U.S. over the last decade uses natural gas, according to the U.S. Department of Energy.

Natural gas creates U.S. jobs and fuels economic growth

In 2008, the natural gas industry directly employed 622,000 Americans, plus another 2.2 million people in supporting industries and services, according to IHS Global Insight. Natural gas helps drive the economy, with development contributing $385 billion to the U.S. economy in 2008 (source IHS Global Insight). Increasing the production of natural gas is a direct and immediate driver of U.S. economic growth, with the American Chemistry Council estimating that a 25 percent increase in ethane supplies due to new shale gas production would result in: The creation of more than 400,000 new jobs in or related to the chemical industry. An increase in U.S. economic output by more than $132 billion. $4.4 billion a year in additional local, state and federal taxes. Wood Mackenzie recently found that an additional 1.1 million jobs could be created by 2020 in the U.S., with policies that encourage the development of new and existing oil and gas resources.

Over 16,000 miles of new interstate pipeline were approved between 2000 and 2010, the most in 40 years. Combined with a 22 percent increase in high-turnover storage space, this added pipeline capacity will increase the reliable delivery of natural gas, which is expected to moderate prices going forward.

Natural gas is safely used in homes and businesses

More than half of the 120 million U.S. households use natural gas directly in their homes. Household safety incidents have declined 29 percent since 1988, while usage has increased by 20 percent.

Natural gas is useful from home heating to chemical manufacturing to electricity generation
While many consumers know natural gas as the means to heat and cool our homes and businesses and to cook our food, this usage only accounts for one-third of U.S. consumption. In fact, natural gas is a key raw material and direct fuel source for the U.S. manufacturing industry and for generating electricity. One-third of U.S. natural gas production goes directly into our industrial and manufacturing sectors where it is used for process heating, cooling and electrical power and also serves as a chemical building block in the manufacturing process of certain consumer products, like ammonia, urea and methanol.

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Natural Gas