Exploration Recap

To end my series of blog posts, I will review what I have covered in my blogging on the natural gas exploration front.

One of the most recent new frontiers in the exploration for natural gas is in the oceans.  With the ability to transport natural gas without the need of pipelines thanks to LNG, gas companies are now able to extract the once inaccessible natural gas from the seas directly onto boats to be exported.

In week two we examined Australia and unveiled that it is one of the hottest places for natural gas exploration.  This is large in part due to the small population Australia has in comparison to its large supply of natural gas, meaning the country has large quantities of gas for export.  Other factors include the countries spars population over most of its land and it’s gas rich oceans off of its western coast.

Week three brought a post about LNG and why it is such an important factor in the movement towards natural gas.  It is because of LNG that natural gas can be exported on a large scale from countries with gas surplus to countries with a need for more energy resources.  LNG not only makes international trade possible because of the physical form of moving it, but also because it allows companies to do so efficiently.

For week five I posted about the power of exploration rights to put into perspective what a valuable commodity natural gas is and is becoming.  This was exemplified by the Russian gas giant Gazprom who allegedly offered the money short country of Cyprus a privately funded $10 billion bailout plan in exchange for exclusive exploration rights.

This will be my last blog post for thenaturalgasALTERNATIVE and I would like to say to all of our readers, thank you for joining us and listening to what we had to say about the natural gas industry.

Economy Recap

So where do we go from here? The past few years have been rough for the US economy to say the least, but with the recent shale boom and increased production in natural gas, there might be hope for a bright US economic future.

 

As I mentioned last week in my blog, Pushing the Economy Forward, the economy needs to get back on its feet and I believe that natural gas in the manufacturing industry will help make this a reality. The US has the largest manufacturing sector in the world and growth in domestic manufacturing has a multiplier effect on the broader state of our economy. More production in this sector alone can lead to new capital investments, help create more jobs, and increase the US exports of value added products; the GDP of the US will automatically see improvements and therefore get the ball rolling on the economy.

 

Increasing production in the manufacturing sector using natural gas should not be a problem considering the US has the lowest price in the world. Since 2005, the production of natural gas in the states has increased more than 25% and is expected to continue increasing into the later years. As of right now the US is producing more natural gas than the public is consuming, so what should we do with the excess amount of natural gas?

 

Exporting natural gas from the states has been a controversy ever since we started to accumulate excess amounts of it. Although there are certain groups fighting against the exportation of natural gas, this new era of sustainable energy has just begun, and in due time the US will become a major exporter of this “hot” commodity.

 

This new wave of energy has brought new light into the economy. Companies in several sectors of the economy, such as manufacturing, oil and gas, chemical, and many more, are now becoming more competitive than they have been in recent years. Competition is what makes an economy thrive and keeps them going.

 

If the excitement about natural gas continues, which it will, it will create a snow ball effect not only on a domestic economic level but on a global level as well. Countries who invest in this new sustainable energy will also see improvements in their domestic sectors as well as its overall economy. And when the power house economies thrive, it pushes other economies to thrive as well.

 

What do you know, there may be hope for our futures after all!

What is the future of natural gas?

As we saw in the post, Natural Gas distributor hedging risk, the future of the industry is uncertain and companies are looking into diversifying their offerings as well as the markets that they are in. Cash flow fluctuations have subsided as many electricity providers have shifted to burning natural gas as a way to generate electricity during summer months. However, prices of natural gas are still uncertain and legislation may be passed soon to decrease the harm that hydraulic fracturing reeks on the nearby water supplies. So, multiple natural gas distributors are using their expertise to expand into foreign markets, which BG Group has done successfully in India.

Not all natural companies have to explore foreign markets to find success. Some can find it here in the U.S. with a little help from legislators. That’s right; I’m talking about the Alaska natural gas pipeline project. The opportunity with the Alaska pipeline is low cost transport of natural gas from Alaska’s vast North Slope reserves. TransCanada and ExxonMobil are working together on one of the largest privately funded energy projects in the history of North America.

ExxonMobil may be making the right move, investing more into natural gas, because, as we saw in the subsidies post, President Obama has a plan to eliminate tax breaks for oil companies. Along with that, he plans to increase royalties from energy production by private companies on federal land. That, along with government mandates to decrease the amount of sulfur in gasoline, has oil companies nervous about their bottom line. Oil companies may have to pass on some of the costs to consumers.

If oil companies decide to increase the costs of gas to consumers to comply with government mandates while keeping their margins, switching to natural gas as a fuel source may become a more viable option for frequent or long-distance drivers. Currently, converting a vehicle to natural gas is not a preferable option for most consumers because of the high initial costs but many businesses (even Taxis in India) have switched their fleets to natural gas, and many more are converting their company vehicles as I write this.

It will be interesting to see what the future holds for the natural gas industry and how the public will respond.

Industry Problems and Community Recap

Hello fellow bloggers. This will be my last blog post on thenaturalgas ALTERNATIVE because the semester has come to an end. I would like to take this time to recap the blogs I wrote throughout the blog.

My first blog post was Cabot Oil & Gas and Chesapeake Energy. In this post I highlighted what Cabot and Chesapeake have been doing in their local communities.

Cabot Oil & Gas is a leading partner with Endless Mountains Health Systems in a $45 million hospital project in Montrose.  They started off the project with a $1 million leadership gift to get the project underway.

Chesapeake Energy is working with their local United Way and has become the first-ever corporate sponsor for their communities united way 2013 campaign. They have also been extremely helpful with the flood recovery efforts in Bradford County.

My next blog post was Wastewater and Casella Waste Systems. In this post I highlighted a major problem in the natural gas industry, wastewater.

Wastewater is the left over water from hydraulic fracturing. The problem with this wastewater is that it can have anywhere for 3 to 12 additive chemicals used for fracking in them.  Potentially this water could be treated at a plant so that it may be used in the future and the is what Casella Waste Systems has been doing. The landfills that Casella Waste Systems sends the wastewater to have a gas collection system they use to collect extra gas in the water and to produce energy for their plants.

My next blog was Natural Gas Pipelines and Bake Hughes. In this blog I highlighted some problems that companies are having with their natural gas pipelines. These problems have caused deaths in the apst but luckily Baker Hughes designed GEOPIGs that are high-resolution caliper in-line inspection services. These PIGs are sent through the pipeline and scan for any weak points they can find.

My last blog was Giving Back to the Community. In this blog I wrote about natural gas companies that are giving back to their communities.

Columbia Gas of Virginia has donated over $3000 to a variety of non-profit organizations in their communities. Virginia Gas has been partnering with their local Salvation Army’s Energy Share program as well as with their local Special Olympics. Briggy Bandz donates between $1 to 40% of each Bandz sold to many non-profit organizations.

I hope you enjoyed reading my posts and don’t forget to check out the other posts by my group members!

Technological Recap

As we have seen over the past weeks, Natural Gas has the versatility and ability to answer all of our energy needs. This versatility stems from the high efficiencies of its energy production. As I spoke about in my 2nd blog post, “Natural Gas Powering Industry” the ability to compress and cool Natural Gas gives a huge increase in molecular components to store additional energy by forming more bonds. Through this storage we gain a higher amount of energy extraction when we combust the same amount of Natural Gas.

With all of these substantial benefits, countries have begun exploration of their own Natural Gas Resources. There is a large consensus in the world that Natural Gas should be used and it will provide many countries a higher level of energy independence. However, with relatively no exports between countries right now (Natural Gas Reserves Around the World Bridging Future and Current Energy Sources) the world must undertake a substantial amount of development in order for this resource to become as wide spread and interchanged as oil.

Within the next few decades, it is detrimental that we find a new energy source. With the combination of climate change, depletion of resources and the volatility of the countries we import oil from, the current and future economy cannot be supported by the current system.

Thats not to say Natural Gas has no issues. There aspects of its production need to be addressed, however if we implement the right regulation and the right strategies we can begin taking steps towards a cleaner world.

I await a period that is powered by all renewable sources of energy and a time that we can begin to turn back the effects of climate change. However, we have to be realistic about the time and amount of money developing these resources will take. As we implement development we must have an energy source to sustain us.  If we must pick from what our current system have now or a system that can power more homes, cities and nations, cheaper, more effectively and cleaner why would we not take this option.

It is now up to you all, you are the voice of our nation and you will be the ones to make the decision on this resource as key elections and votes are undertaken in the coming years. Use your new found knowledge and make the judgement you best see fit.

Remember that at the end of the day we must power our society and all paths will have large costs and benefits.

The choice is up to you.