Gas can play a crucial role as a bridge fuel to renewables. But it will only do so if flaring, venting, and fugitive methane emissions are significantly reduced.
Proved reserves are the volumes of natural gas that geological and engineering data analysis indicates can be recovered under existing economic and operating conditions. Reserves can increase or shrink with changing wholesale (spot) natural gas prices and exploration successes.
It’s Cleaner
Natural gas is a cleaner burning fossil fuel than coal. When burned, it emits half as much CO2 to produce the same energy and produces fewer toxic substances (such as sulfur dioxide and particulate matter).
However, methane emissions from drilling and other natural gas activities must be reduced. Companies add an odor to natural gas so people will know if there’s a leak, and they must periodically check for methane leaks and plug them in.
Conventional natural gas reserves are found in oil fields, shale, and other “tight” rock formations. To access these reserves, energy producers must use complex processes such as hydraulic fracturing or acidizing to open cracks in the rocks that hold the gas. This is a costly process, and continuing dependence on these fossil fuels will thwart our ability to meet climate goals.
It’s Cheaper
Natural gas is one of the lowest-cost fossil fuels to produce electricity. In addition, its emissions emit half as much carbon dioxide as coal, which helps to reduce carbon dioxide levels and climate change.
Because of advances in extraction methods, the world has abundant natural gas supplies. Many companies have increased production efficiency using hydraulic fracturing or horizontal drilling. This means that the cost of extracting natural gas has fallen, making it even more affordable.
Depending on price, some large energy consumers, such as power plants and iron or steel mills, can switch between coal, natural gas, and petroleum. This makes the supply of low-cost natural gas crucial for a successful energy transition. If prices rise too high, these businesses will use alternative energy sources.
It’s Easier to Store
Natural gas is colorless, odorless, and a mix of hydrocarbons (mainly methane) found deep underground. It is a fossil fuel, like oil and coal, that will run out eventually.
It is harvested from the ground by drilling wells and pumped to the surface, where it can be collected. It is then liquefied and transported through pipelines to reach end users. Natural gas is also often stored underground [references needed about geological storage] inside depleted gas reservoirs and salt domes or in tanks as liquefied natural gas.
Some states have 490,850 pipelines carrying natural gas to markets throughout the country. Its low cost makes it a good baseload energy source. It can also help solve renewable intermittency issues by providing backup.
It’s More Flexible
An essential resource in the energy transition is the natural gas reserves. They are an essential hedge against fluctuations in the electricity demand picture, and they can be a cost-effective intermittency solution to renewables.
Proved reserves are the volumes of natural gas that analyses of geological and engineering data demonstrate could be recovered under current economic conditions. These volumes shrink or expand yearly based on wholesale (spot) natural gas prices and production costs.
Tight gas reserves are natural gas trapped underground in impermeable rock formations requiring expensive, complex techniques, such as hydraulic fracturing and horizontal drilling. These deposits are also called unconventional natural gas and include shale gas. Unconventional natural gas can also be found in the ocean as methane hydrates.
It’s More Reliable
Natural gas is created when layers of decomposing plants and animals are subjected to intense heat and pressure. Over time, this turns the organic material into coal, petroleum, and natural gas. Most of the world’s proven natural gas reserves are underground in porous rock reservoirs such as sandstone and shale. A smaller amount of gas is found in tight (non-porous) rock formations that require expensive extraction methods, including hydraulic fracturing and horizontal drilling.
Companies developing these resources must minimize emissions from their core operations, and this includes minimizing routine flaring of associated natural gas when the economics don’t justify shipping it to market. It also means ensuring that any extracted gas is utilized to reduce waste. This approach would make reaching energy and climate targets like net zero emissions and Agreement compliance easier.
It’s More Powerful
Many people know that natural gas is used to heat and cook in homes, but it can also power water heaters, garage heaters, space heaters, clothes dryers, and more. It’s also critical in industrial settings, such as oil refineries.
Thermogenic methane forms deep beneath the Earth’s surface and rises to the surface through porous matter like rock or soil. This creates reservoirs of natural gas that can be harvested by drilling a hole (called a well) and releasing the gas.
Proved reserves are the volumes that geological and engineering data analysis indicates, with reasonable certainty, can be recovered from known reservoirs under existing economic and operating conditions. Each year, proved reserves are updated as more information is gained from exploratory wells.
It’s Better for the Environment
Natural gas is the most environmentally friendly fossil fuel combusted in power plants, emitting 50 to 60 percent less carbon dioxide than coal-fired plants. However, methane leaks during extraction and transportation exacerbate climate change.
Drilling for natural gas can disrupt ecosystems and cause habitat fragmentation. Pipelines can leak and spill, contaminating water sources and polluting the air with methane.
Amid rising pressure from environmental advocates, regulators, shareholders, and policymakers to transition to a low-carbon economy, oil and gas companies must mobilize for the future. More robust communication of the value of natural gas can insulate producers from environmental pressure, positioning them as an ally instead of a roadblock to a low-carbon energy transition. In addition, strategies that reduce carbon emissions can help offset a growing share of emissions from the power sector and support a smoother integration of renewables.
