Natural Gas Business Issues Part 1

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From the course by University of Colorado System

Fundamentals of Global Energy Business

311 ratings

University of Colorado System

Fundamentals of Global Energy Business

311 ratings

Learn about diverse and integrated markets for primary energy, and the essential considerations driving business leaders and policy makers in development of global energy resources.

From the lesson

Key Capabilities for Energy Business - Fossil Fuels

A range of technological and commercial factors determine accessibility and utilization of conventional energy resources. These lectures review considerations essential to the development of various fossil fuel sources of energy, including coal, oil, gas, and shale gas.

Natural Gas Introduction5:40

Natural Gas Value Chain4:47

Natural Gas Market Activity7:46

Shale Gas Introduction10:58

Natural Gas Business Issues Part 15:22

Natural Gas Business Issues Part 28:32

Natural Gas Business Issues Part 35:51

Meet the Instructors

Michael J. Orlando
Lecturer
Global Energy Management, Business School

Okay, so let's take a brief look at what

have been some of the implications of this technology.

You know, this was something that I think Mitchell

Energy started playing around with in the late 80s, early

90s, and really everybody kind of feels like, we figured it out by

2000 or shortly thereafter, maybe, maybe mid-2000s.

Well, look at what has happened in all of these gas related slides.

So, here we have, in the top left

corner we have US energy production and consumption.

This is trillion cubic feet of natural gas.

[COUGH] So we used to have total consumption in excess, of

production, okay?

What we see by, basically, we see a

downtrend in these net imports beginning in the mid-2000s.

And we're now to the point that we have, you

know, we're almost self-sufficient when it comes to natural gas.

And we currently project something like the latter

part of this decade to actually be fully self-sufficient.

And certainly, thereafter to actually be a net exporter of natural gas.

The US will be a net exporter of a hydrocarbon, which is pretty remarkable.

Something I wouldn't have expected in my life.

Now, let's take a look at this slide on the bottom here.

This is

this is sort of US natural gas imports and exports, but by location.

So, again, down here you can see that up until

you know, by mid to late-2000s we were actually producing not only significant

amounts from Canada but we actually, you see this little sliver down here of LNG.

We were producing liquified net, or we were importing liquified natural gas.

We're importing from Canada and very limited exports of, to Mexico and Canada.

Some of the adjacent states where transportation issues

made it, you know, as we talked about,

sometimes it makes sense to, even if you're

a net importer to actually export some gas.

By now, we actually are importing very little LNG.

Our imports from Canada have dropped.

Our exports to Canada have increased and we see growing exports to Mexico.

And then we can take a look at electricity generation from gas

and coal and this is something I'd mentioned a couple of times.

This has been a huge natural gas had a huge impact on the coal sector.

So, what we see up until 2000, see

now coal, really the dominant fuel for producing electricity.

But since mid-2000, rapid growth in use of natural

gas, you know, all of a sudden we have these

new plays that are being developed around the US and

people start looking for ways because it's stranded, it's cheap.

We start looking for ways to make use of it.

So, massive growth in utilization of natural gas, in particular, for electrical

generation, actually is expected, electrical generation by gas is expected

to be equivalent to that of coal by 2035.

So, another, what is that, another 20 years or so?

And then lastly it's a little subtle in this chart, but in the bottom right we see

carbon dioxide emissions associated with these various fuel types.

And we see, you know, emissions associated with

coal since 05 dropping, you know, reasonably significantly.

Down to here from, you know, a value like this.

Natural gas is just a lot cleaner fuel, even though it

is a nonrenewable, it is a lot cleaner burning than coal.

So, not a tremendous expansion in the

emissions associated with natural gas and certainly

much less than what we've gained in ground on from reduction and utilization of coal.

[COUGH] So with the increased cost of,

of regulation and technologies to keep coal competitive.

Natural gas is just making it very hard on coal

to remain a dominant producer of electricity in the US.

[BLANK_AUDIO]

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