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Facts on Fuel - Natural Gas
Many Americans rely on safe, efficient and clean burning natural gas to heat and cool their homes. Natural gas fuels many manufacturing and electricity generation plants, and is a key ingredient in products that we use every day.
The Dynamics of Natural Gas Prices Natural gas prices paid by consumers and industrial users rose sharply in mid-2008 and then fell quite low. Look below to learn why.
Natural Gas Supply and Demand It all comes down to supply and demand. On the demand-side, a lot of upward pressure on natural gas prices occurred in recent years because more and more homeowners, businesses and utilities turned to clean-burning natural gas. Suppliers responded to the signal of higher prices and used new information and technologies to deliver more domestic natural gas, which put downward pressure on prices in 2008 and 2009.
The good news for American consumers and businesses is that new and advanced technologies for drilling and completing wells for production are allowing us increasingly better access to natural gas resources within our own borders (and in Canada) which, not all that long ago, were considered impractical or uneconomical to pursue. However, it is important to note that though more natural gas wells are being drilled, it takes time to get natural gas from these wells to market. Also, many older wells are nearing the end of their productive life. It remains vitally important for government policies to allow access to areas of potential for natural gas development, and to avoid restrictions and regulatory burdens that would increase the cost or reduce the availability of the technologies that allow companies to produce these new resources for the benefit of American consumers and our nation’s economy.
Liquefied Natural Gas (LNG) Liquefied Natural Gas (LNG) has the potential to diversify and expand natural gas supplies. How? Find out below.
LNG Opens Shipping Options Most natural gas travels from the well to the processing facility to you entirely by pipeline. But building pipelines to reach more remote wells is cost-prohibitive. LNG is an economically viable means of bringing natural gas from these wells to market. Natural gas turns to a liquid when cooled to extremely low temperatures (roughly minus 260 degrees F). This greatly reduces its volume, making it possible to ship LNG in tankers, just like crude oil. When LNG reaches its destination, it is unloaded into storage tanks then warmed back to a gaseous state and fed into the usual pipeline system.
Supply Solutions A number of options exist to safely and economically increase the supply of natural gas available on the market.
Technology Holds the Key to Increased Supply There are a number of currently available options that will help ensure a steady supply of natural gas to meet America's growing demand: More LNG facilities are needed, including marine terminals for unloading LNG. New, environmentally sensitive drilling technologies could tap domestic reserves currently off-limits because of a federal moratorium.
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