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Natural gas extraction by countries in cubic meters per year.

Natural gas is a naturally occurring hydrocarbon gas mixture consisting primarily of methane, with other hydrocarbons, carbon dioxide, nitrogen and hydrogen sulfide.[1] Natural gas is an important energy source to provide heating and electricity. It is also used as fuel for vehicles and as a chemical feedstock in the manufacture of plastics and other commercially important organic chemicals.

Natural gas is found in deep natural rockother hydrocarbon reservoirs in coal beds and as methane clathrates. Petroleum is also another resource found in proximity to and with natural gas. Most natural gas was created over time by two mechanisms: biogenic and thermogenic. Biogenic gas is created by methanogenic organisms in marshes, bogs, landfills, and shallow sediments. Deeper in the earth, at greater temperature and pressure, thermogenic gas is created from buried organic material.[2][3]

Before natural gas can be used as a fuel, it must undergo processing to clean the gas and remove impurities, including water, to meet the specifications of marketable natural gas. The by-products of processing include ethane, propane, butanes, pentanes, and higher molecular weight hydrocarbons, hydrogen sulfide (which may be converted into pure sulfur), carbon dioxide, water vapor, and sometimes helium and nitrogen.

Natural gas is often informally referred to simply as gas, especially when compared to other energy sources such as oil or coal.

Sources

Natural gas

Natural gas drilling rig in Texas.

In the 19th century, natural gas was usually obtained as a by-product of producing oil, since the small, light gas carbon chains came out of solution as the extracted fluids underwent pressure reduction from the reservoir to the surface, similar to uncapping a bottle of soda where the carbon dioxide effervesces. Unwanted natural gas was a disposal problem in the active oil fields. If there was not a market for natural gas near the wellhead it was virtually valueless since it had to be piped to the end user. In the 19th century and early 20th century, such unwanted gas was usually burned off at oil fields. Today, unwanted gas (or stranded gas without a market) associated with oil extraction often is returned to the reservoir with 'injection' wells while awaiting a possible future market or to repressurize the formation, which can enhance extraction rates from other wells. In regions with a high natural gas demand (such as the US), pipelines are constructed when it is economically feasible to transport gas from a wellsite to an end consumer.

Another possibility is to export natural gas as a liquid. Gas-to-liquids (GTL) is a developing technology that converts stranded natural gas into synthetic gasoline, diesel, or jet fuel through the Fischer-Tropsch process developed in Germany prior to World War II. Such fuel can be transported to users through conventional pipelines and tankers. Proponents claim that GTL burns cleaner than comparable petroleum fuels. Major international oil companies use sophisticated technology to produce GTL. A world-scale (140,000 barrels (22,000 m3) a day) GTL plant in Qatar went into production in 2011.

Natural gas can be "associated" (found in oil fields), or "non-associated" (isolated in natural gas fields), and is also found in coal beds (as coalbed methane). It sometimes contains a significant amount of ethane, propane, butane, and pentane—heavier hydrocarbons removed for commercial use prior to the methane being sold as a consumer fuel or chemical plant feedstock. Non-hydrocarbons such as carbon dioxide, nitrogen, helium (rarely), and hydrogen sulfide must also be removed before the natural gas can be transported.[4]

Natural gas is commercially extracted at oil fields and natural gas fields. Gas extracted from oil wells is called casinghead gas or associated gas. The natural gas industry is extracting an increasing quantity of gas from challenging resource types: sour gas, tight gas, shale gas, and coalbed methane.

The world's largest proven gas reserves are located in Russia, with 4.757×1013 m³ (1.68×1015 cubic feet). With Gazprom, Russia is frequently the world's largest natural gas extractor. Major proven resources (in billion cubic meters) are world 175,400 (2006), Russia 47,570 (2006), Iran 26,370 (2006), Qatar 25,790 (2007), Saudi Arabia 6,568 (2006) and United Arab Emirates 5,823 (2006).

It is estimated that there are about 900 trillion cubic meters of "unconventional" gas such as shale gas, of which 180 trillion may be recoverable.[5] In turn, many studies from MIT, Black & Veatch and the DOE -- see natural gas -- will account for a larger portion of electricity generation and heat in the future.[6]

The world's largest gas field is Qatar's offshore North Field, estimated to have 25 trillion cubic meters[7] (9.0×1014cubic feet) of gas in place—enough to last more than 420 years[citation needed] at optimum extraction levels. The second largest natural gas field is the South Pars Gas Field in Iranian waters in the Persian Gulf. Located next to Qatar's North Field, it has an estimated reserve of 8 to 14 trillion cubic meters[8] (2.8×1014 to 5.0×1014 cubic feet) of gas.

Because natural gas is not a pure product, as the reservoir pressure drops when non-associated gas is extracted from a field under supercritical (pressure/temperature) conditions, the higher molecular weight components may partially condense upon isothermic depressurizing—an effect called retrograde condensation. The liquid thus formed may get trapped as the pores of the gas reservoir get deposited. One method to deal with this problem is to re-inject dried gas free of condensate to maintain the underground pressure and to allow re-evaporation and extraction of condensates. More frequently, the liquid condenses at the surface, and one of the tasks of the gas plant is to collect this condensate. The resulting liquid is called natural gas liquid (NGL) and has commercial value.

Town gas

Town gas, a synthetically produced mixture of methane and other gases, mainly the highly toxic carbon monoxide, is used in a similar way to natural gas and can be produced by treating coal chemically. This is a historical technology, not usually economically competitive with other sources of fuel gas today. But there are still some specific cases where it is the best option and it may be so into the future.

Most town "gashouses" located in the eastern US in the late 19th and early 20th centuries were simple by-product coke ovens which heated bituminous coal in air-tight chambers. The gas driven off from the coal was collected and distributed through networks of pipes to residences and other buildings where it was used for cooking and lighting. (Gas heating did not come into widespread use until the last half of the 20th century.) The coal tar (or asphalt) that collected in the bottoms of the gashouse ovens was often used for roofing and other water-proofing purposes, and when mixed with sand and gravel was used for paving streets.

Biogas

When methane-rich gases are produced by the anaerobic decay of non-fossil organic matter (biomass), these are referred to as biogas (or natural biogas). Sources of biogas include swamps, marshes, and landfills (see landfill gas), as well as sewage sludge and manure[9] by way of anaerobic digesters, in addition to enteric fermentation, particularly in cattle.

Methanogenic archaea (bacteria) are responsible for all biological sources of methane, some in symbiotic relationships with other life forms, including termites, ruminants, and cultivated crops. Methane released directly into the atmosphere would be considered a pollutant. However, methane in the atmosphere is oxidized, producing carbon dioxide and water. Methane in the atmosphere has a half life of seven years, meaning that if a tonne of methane were emitted today, 500 kilograms would have broken down to carbon dioxide and water after seven years.

U.S. natural gas extraction, 1900–2005. Source: EIA.

Other sources of methane, the principal component of natural gas, include landfill gas, biogas, and methane hydrate. Biogas, and especially landfill gas, are already used in some areas, but their use could be greatly expanded. Landfill gas is a type of biogas, but biogas usually refers to gas produced from organic material that has not been mixed with other waste.

Landfill gas is created from the decomposition of waste in landfills. If the gas is not removed, the pressure may get so high that it works its way to the surface, causing damage to the landfill structure, unpleasant odor, vegetation die-off, and an explosion hazard. The gas can be vented to the atmosphere, flared or burned to produce electricity or heat. Experimental systems were being proposed for use in parts of Hertfordshire, UK, and Lyon in France.

Once water vapor is removed, about half of landfill gas is methane. Almost all of the rest is carbon dioxide, but there are also small amounts of nitrogen, oxygen, and hydrogen. There are usually trace amounts of hydrogen sulfide and siloxanes, but their concentration varies widely. Landfill gas cannot be distributed through utility natural gas pipelines unless it is cleaned up to less than 3 per cent CO2, and a few parts per million H
2
S
, because CO2 and H
2
S
corrode the pipelines.[10] The presence of CO2 will lower the energy level of the gas below requirements for the pipeline. Siloxanes in the gas will form deposits in gas burners and need to be removed prior to entry into any gas distribution or transmission system.

It is usually more economical to combust the gas on site or within a short distance of the landfill using a dedicated pipeline. Water vapor is often removed, even if the gas is combusted on site. If low temperatures condense water out of the gas, siloxanes can be lowered as well because they tend to condense out with the water vapor. Other non-methane components may also be removed to meet emission standards, to prevent fouling of the equipment or for environmental considerations. Co-firing landfill gas with natural gas improves combustion, which lowers emissions.

Gas generated in sewage treatment plants is commonly used to generate electricity. For example, the Hyperion sewage plant in Los Angeles burns 8 million cubic feet (230,000 m3) of gas per day to generate power[11] New York City utilizes gas to run equipment in the sewage plants, to generate electricity, and in boilers.[12] Using sewage gas to make electricity is not limited to large cities. The city of Bakersfield, California, uses cogeneration at its sewer plants.[13] California has 242 sewage wastewater treatment plants, 74 of which have installed anaerobic digesters. The total biopower generation from the 74 plants is about 66 MW.[14]

Biogas is usually produced using agricultural waste materials, such as otherwise unusable parts of plants and manure. Biogas can also be produced by separating organic materials from waste that otherwise goes to landfills. This method is more efficient than just capturing the landfill gas it produces. Using materials that would otherwise generate no income, or even cost money to get rid of, improves the profitability and energy balance of biogas production.

Anaerobic lagoons produce biogas from manure, while biogas reactors can be used for manure or plant parts. Like landfill gas, biogas is mostly methane and carbon dioxide, with small amounts of nitrogen, oxygen and hydrogen. However, with the exception of pesticides, there are usually lower levels of contaminants.

The McMahon natural gas processing plant in Taylor, British Columbia, Canada.[15]

Crystallized natural gas — hydrates

Huge quantities of natural gas (primarily methane) exist in the form of hydrates under sediment on offshore continental shelves and on land in arctic regions that experience permafrost, such as those in Siberia. Hydrates require a combination of high pressure and low temperature to form. However, as of 2010 no technology has been developed yet to extract natural gas economically from hydrates.

In 2010, using current technology, the cost of extracting natural gas from crystallized natural gas is estimated to 100–200 per cent the cost of extracting natural gas from conventional sources, and even higher from offshore deposits.[16]

Shale gas

Shale gas in the United States is rapidly increasing as a source of natural gas. Led by new applications of hydraulic fracturing technology and horizontal drilling, development of new sources of shale gas has offset declines in production from conventional gas reservoirs, and has led to major increases in reserves of US natural gas. Largely due to shale gas discoveries, estimated reserves of natural gas in the United States in 2008 were 35% higher than in 2006.[17] Following the success in the United States, gas operations are beginning to sprout up in other countries around the world, particularly Poland, China, and South Africa. [18][19][20]

Shale gas was first extracted as a resource in Fredonia, NY in 1825,[21] in shallow, low-pressure fractures. Work on industrial-scale shale gas production did not begin until the 1970s, when declining production potential from conventional gas deposits in the United States spurred the federal government to invest in R&D and demonstration projects[22] that ultimately led to directional and horizontal drilling, microseismic imaging, and massive hydraulic fracturing. Up until the public and private R&D and demonstration projects of the 1970s and 1980s, drilling in shale was not considered to be commercially viable.

Early American federal government investments in shale gas began with the Eastern Gas Shales Project in 1976 and the annual FERC-approved research budget of the Gas Research Institute. The Department of Energy later partnered with private gas companies to complete the first successful air-drilled multi-fracture horizontal well in shale in 1986. The federal government further incentivized drilling in shale via the Section 29 tax credit for unconventional gas from 1980-2000. Microseismic imaging, a crucial input to both hydraulic fracturing in shale and offshore oil drilling, originated from seismic research at Sandia National Laboratories. In 1991 the Department of Energy subsidized Texas gas company Mitchell Energy's first horizontal drill in the Barnett Shale in north Texas.[23]

Mitchell Energy utilized all these component technologies and techniques to achieve the first economical shale fracture in 1998 using an innovative process called slick-water fracturing.[24][25] Since then, natural gas from shale has been the fastest growing contributor to total primary energy (TPE) in the United States, and has led many other countries to pursue shale deposits. According to the IEA, the economical extraction of shale gas more than doubles the projected production potential of natural gas, from 125 years to over 250 years.[26]

Natural gas processing

The image below is a schematic block flow diagram of a typical natural gas processing plant. It shows the various unit processes used to convert raw natural gas into sales gas pipelined to the end user markets.

The block flow diagram also shows how processing of the raw natural gas yields byproduct sulfur, byproduct ethane, and natural gas liquids (NGL) propane, butanes and natural gasoline (denoted as pentanes +).[27][28][29][30][31]

Schematic flow diagram of a typical natural gas processing plant.

Depletion

See main article, Gas depletion

Uses

Power generation

Natural gas is a major source of electricity generation through the use of cogeneration, gas turbines and steam turbines. Natural gas is also well suited for a combined use in association with renewable energy sources such as wind or solar and for alimenting peak-load power stations functioning in tandem with hydroelectric plants.[32] Most grid peaking power plants and some off-grid engine-generators use natural gas. Particularly high efficiencies can be achieved through combining gas turbines with a steam turbine in combined cycle mode. Natural gas burns more cleanly than other hydrocarbon fuels, such as oil and coal, and produces less carbon dioxide per unit of energy released. For an equivalent amount of heat, burning natural gas produces about 30 per cent less carbon dioxide than burning petroleum and about 45 per cent less than burning coal.[33] [34] Coal-fired electric power generation emits around 2,000 pounds of carbon dioxide for every megawatt hour generated, which is almost double the carbon dioxide released by a natural gas-fired electric plant per megawatt hour generated. Because of this higher carbon efficiency of natural gas generation, as the fuel mix in the United States has change to reduce coal and increase natural gas generation carbon dioxide emissions have unexpectedly fallen. Those measured in the first quarter of 2012 were the lowest of any recorded for the first quarter of any year since 1992.[35]

Combined cycle power generation using natural gas is currently the cleanest available source of power using hydrocarbon fuels, and this technology is widely and increasingly used as natural gas can be obtained at increasingly reasonable costs. Fuel cell technology may eventually provide cleaner options for converting natural gas into electricity, but as yet it is not price-competitive. Locally produced electricity and heat using natural gas powered Combined Heat and Power plant (CHP or Cogeneration plant) is considered energy efficient and a rapid way to cut carbon emissions.[36]

Domestic use

Template:Globalize/US Natural gas dispensed from a simple stovetop can generate heat in excess of 2000°F (1093°C) making it a powerful domestic cooking and heating fuel.[37] In much of the developed world it is supplied to homes via pipes where it is used for many purposes including natural gas-powered ranges and ovens, natural gas-heated clothes dryers, heating/cooling, and central heating. Home or other building heating may include boilers, furnaces, and water heaters. Compressed natural gas (CNG) is used in rural homes without connections to piped-in public utility services, or with portable grills.[citation needed] Natural gas is also supplied by independent natural gas suppliers through Natural Gas Choice programs throughout the United States. However, due to CNG being less economical than LPG, LPG (propane) is the dominant source of rural gas.

A Washington, D.C. Metrobus, which runs on natural gas.

Transportation

CNG is a cleaner alternative to other automobile fuels such as gasoline (petrol) and diesel. As of 2012 there were 16.4 million natural gas vehicles worldwide, led by Pakistan (3.1 million), Iran (2.9 million), Argentina (2.1 million), Brazil (1.7 million), India (1.5 million), and China (1.2 million).[38][39][40] The energy efficiency is generally equal to that of gasoline engines, but lower compared with modern diesel engines. Gasoline/petrol vehicles converted to run on natural gas suffer because of the low compression ratio of their engines, resulting in a cropping of delivered power while running on natural gas (10%–15%). CNG-specific engines, however, use a higher compression ratio due to this fuel's higher octane number of 120–130.[41] [42]

Fertilizers

Natural gas is a major feedstock for the production of ammonia, via the Haber process, for use in fertilizer production.

Aviation

Russian aircraft manufacturer Tupolev is currently running a development program to produce LNG- and hydrogen-powered aircraft.[43] The program has been running since the mid-1970s, and seeks to develop LNG and hydrogen variants of the Tu-204 and Tu-334 passenger aircraft, and also the Tu-330 cargo aircraft. It claims that at current market prices, an LNG-powered aircraft would cost 5,000 roubles (~ $218/ £112) less to operate per ton, roughly equivalent to 60 per cent, with considerable reductions to carbon monoxide, hydrocarbon and nitrogen oxide emissions.

The advantages of liquid methane as a jet engine fuel are that it has more specific energy than the standard kerosene mixes do and that its low temperature can help cool the air which the engine compresses for greater volumetric efficiency, in effect replacing an intercooler. Alternatively, it can be used to lower the temperature of the exhaust.

Hydrogen

Natural gas can be used to produce hydrogen, with one common method being the hydrogen reformer. Hydrogen has many applications: it is a primary feedstock for the chemical industry, a hydrogenating agent, an important commodity for oil refineries, and the fuel source in hydrogen vehicles.

Other

Natural gas is also used in the manufacture of fabrics, glass, steel, plastics, paint, and other products.

Storage and transport

Polyethylene plastic main being placed in a trench.

Because of its low density, it is not easy to store natural gas or transport by vehicle. Natural gas pipelines are impractical across oceans. Many existing pipelines in America are close to reaching their capacity, prompting some politicians representing northern states to speak of potential shortages. In Europe, the gas pipeline network is already dense in the West.[44] New pipelines are planned or under construction in Eastern Europe and between gas fields in Russia, Near East and Northern Africa and Western Europe. See also List of natural gas pipelines.

LNG carriers transport liquefied natural gas (LNG) across oceans, while tank trucks can carry liquefied or compressed natural gas (CNG) over shorter distances. Sea transport using CNG carrier ships that are now under development may be competitive with LNG transport in specific conditions.

Gas is turned into liquid at a liquefaction plant, and is returned to gas form at regasification plant at the terminal. Shipborne regasification equipment is also used. LNG is the preferred form for long distance, high volume transportation of natural gas, whereas pipeline is preferred for transport for distances up to 4,000 km (2,485 mi) over land and approximately half that distance offshore.

CNG is transported at high pressure, typically above 200 bars. Compressors and decompression equipment are less capital intensive and may be economical in smaller unit sizes than liquefaction/regasification plants. Natural gas trucks and carriers may transport natural gas directly to end-users, or to distribution points such as pipelines.

Peoples Gas Manlove Field natural gas storage area in Newcomb Township, Champaign County, Illinois. In the foreground (left) is one of the numerous wells for the underground storage area, with an LNG plant, and above ground storage tanks are in the background (right).

In the past, the natural gas which was recovered in the course of recovering petroleum could not be profitably sold, and was simply burned at the oil field in a process known as flaring. Flaring is now illegal in many countries.[45] Additionally, companies now recognize that gas may be sold to consumers in the form of LNG or CNG, or through other transportation methods. The gas is now re-injected into the formation for later recovery. The re-injection also assists oil pumping by keeping underground pressures higher.

A "master gas system" was invented in Saudi Arabia in the late 1970s, ending any necessity for flaring. Satellite observation, however, shows that flaring[46] and venting[47] are still practiced in some gas-extracting countries.

Natural gas is used to generate electricity and heat for desalination. Similarly, some landfills that also discharge methane gases have been set up to capture the methane and generate electricity.

Natural gas is often stored underground inside depleted gas reservoirs from previous gas wells, salt domes, or in tanks as liquefied natural gas. The gas is injected in a time of low demand and extracted when demand picks up. Storage nearby end users helps to meet volatile demands, but such storage may not always be practicable.

With 15 countries accounting for 84 per cent of the worldwide extraction, access to natural gas has become an important issue in international politics, and countries vie for control of pipelines.[48] In the first decade of the 21st century, Gazprom, the state-owned energy company in Russia, engaged in disputes with Ukraine and Belarus over the price of natural gas, which have created concerns that gas deliveries to parts of Europe could be cut off for political reasons.[49]

Floating Liquefied Natural Gas (FLNG) is an innovative technology designed to enable the development of offshore gas resources that would otherwise remain untapped because due to environmental or economic factors it is nonviable to develop them via a land-based LNG operation. FLNG technology also provides a number of environmental and economic advantages:

  • Environmental – Because all processing is done at the gas field, there is no requirement for long pipelines to shore, compression units to pump the gas to shore, dredging and jetty construction, and onshore construction of an LNG processing plant, which significantly reduces the environmental footprint.[50] Avoiding construction also helps preserve marine and coastal environments. In addition, environmental disturbance will be minimised during decommissioning because the facility can easily be disconnected and removed before being refurbished and re-deployed elsewhere.
  • Economic – Where pumping gas to shore can be prohibitively expensive, FLNG makes development economically viable. As a result, it will open up new business opportunities for countries to develop offshore gas fields that would otherwise remain stranded, such as those offshore East Africa.[51]

Many gas and oil companies are considering the economic and environmental benefits of Floating Liquefied Natural Gas (FLNG). However, for the time being, the only FLNG facility now in development is being built by Shell,[52] due for completion around 2017.[53]

Environmental effects

CO2 emissions

Natural gas is often described as the cleanest fossil fuel, producing less carbon dioxide per joule delivered than either coal or oil[33] and far fewer pollutants than other hydrocarbon fuels[citation needed]. However, in absolute terms, it does contribute substantially to global carbon emissions, and this contribution is projected to grow. According to the IPCC Fourth Assessment Report (Working Group III Report, chapter 4), in 2004, natural gas produced about 5.3 billion tons a year of CO2 emissions, while coal and oil produced 10.6 and 10.2 billion tons respectively (figure 4.4). According to an updated version of the SRES B2 emissions scenario by 2030 natural gas would be the source of 11 billion tons a year, with coal and oil now 8.4 and 17.2 billion respectively because demand is increasing 1.9 per cent a year.[54] (Total global emissions for 2004 were estimated at over 27,200 million tons.)

In addition, natural gas itself is a greenhouse gas more potent than carbon dioxide. Although natural gas is released into the atmosphere in much smaller quantities, methane is oxidized in the atmosphere into CO2, and hence natural gas affects the atmosphere for approximately 12 years, compared to CO2, which is already oxidized, and has effect for 100 to 500 years. Natural gas is composed mainly of methane, which has a radiative forcing twenty times greater than carbon dioxide. Based on such composition, a ton of methane in the atmosphere traps as much radiation as 20 tons of carbon dioxide; however, it remains in the atmosphere for 8–40 times less time. Carbon dioxide still receives the lion's share of attention concerning greenhouse gases because it is released in much larger amounts. Still, it is inevitable when natural gas is used on a large scale that some of it will leak into the atmosphere. (Coal methane not captured by coal bed methane extraction techniques is simply lost into the atmosphere. Current estimates by the EPA place global emissions of methane at 3 trillion cubic feet (85 km3) annually,[55] or 3.2 per cent of global production.[56] Direct emissions of methane represented 14.3 per cent of all global anthropogenic greenhouse gas emissions in 2004.[57]

Other pollutants

Natural gas produces far lower amounts of sulfur dioxide and nitrous oxides than any other hydrocarbon fuel (fossil fuels).[58] Carbon dioxide produced is 117,000 ppm vs 208,000 for burning coal. Carbon monoxide produced is 40 ppm vs 208 for burning coal[citation needed]. Nitrogen oxides produced is 92 ppm vs 457 for burning coal. Sulfur dioxide is 1 ppm vs 2,591 for burning coal. Mercury is 0 vs .016 for burning coal.[59] Particulates are also a major contribution to global warming. Natural gas has 7ppm vs coal's 2,744ppm.[60] Natural gas also has Radon, from 5 to 200,000 Becquerels per cubic meter.[61]

Extraction

According to Business Week, scientists at the National Oceanic and Atmospheric Administration (NOAA), which conducts much of the climate science of the United States, then surprised nearly everyone in February when they revealed that air samples from an area of Colorado with a lot of wells contained twice the amount of methane the United States Environmental Protection Agency (EPA) estimated came from that production method.[62]

Safety concerns

A pipeline odorant injection station

Production

In mines, where methane seeping from rock formations has no odor, sensors are used, and mining apparatus such as the Davy lamp has been specifically developed to avoid ignition sources.

Some gas fields yield sour gas containing hydrogen sulfide (H2S). This untreated gas is toxic. Amine gas treating, an industrial scale process which removes acidic gaseous components, is often used to remove hydrogen sulfide from natural gas.[63]

Extraction of natural gas (or oil) leads to decrease in pressure in the reservoir. Such decrease in pressure in turn may result in subsidence, sinking of the ground above. Subsidence may affect ecosystems, waterways, sewer and water supply systems, foundations, and so on.

Another ecosystem effect results from the noise of the process. This can change the composition of animal life in the area, and have consequences for plants as well in that animals disperse seeds and pollen.

Releasing the gas from low-permeability reservoirs is accomplished by a process called hydraulic fracturing or "hydrofracking". To allow the natural gas to flow out of the shale, oil operators force 1 to 9 million US gallons (34,000 m3) of water mixed with a variety of chemicals through the wellbore casing into the shale. The high pressure water breaks up or "fracks" the shale, which releases the trapped gas. Sand is added to the water as a proppant to keep the fractures in the shale open, thus enabling the gas to flow into the casing and then to the surface. The chemicals are added to the frack fluid to reduce friction and combat corrosion. During the extracting life of a gas well, other low concentrations of other chemical substances may be used, such as biocides to eliminate fouling, scale and corrosion inhibitors, oxygen scavengers to remove a source of corrosion, and acids to clean the perforations in the pipe.

Dealing with fracking fluid can be a challenge. Along with the gas, 30 per cent to 70 per cent of the chemically laced frack fluid, or flow back, returns to the surface. Additionally, a significant amount of salt and other minerals, once a part of the rock layers that were under prehistoric seas, may be incorporated in the flow back as they dissolve in the frack fluid.

Use

In order to assist in detecting leaks, a minute amount of odorant is added to the otherwise colorless and almost odorless gas used by consumers. The odor has been compared to the smell of rotten eggs, due to the added tert-Butylthiol (t-butyl mercaptan). Sometimes a related compound, thiophane may be used in the mixture. Situations in which an odorant that is added to natural gas can be detected by analytical instrumentation, but cannot be properly detected by an observer with a normal sense of smell, have occurred in the natural gas industry. This is caused by odor masking, when one odorant overpowers the sensation of another. As of 2011, the industry is conducting research on the causes of odor masking.[64]

Gas network emergency vehicle responding to a major fire in Kiev, Ukraine

Explosions caused by natural gas leaks occur a few times each year. Individual homes, small businesses and other structures are most frequently affected when an internal leak builds up gas inside the structure. Frequently, the blast will be enough to significantly damage a building but leave it standing. In these cases, the people inside tend to have minor to moderate injuries. Occasionally, the gas can collect in high enough quantities to cause a deadly explosion, disintegrating one or more buildings in the process. The gas usually dissipates readily outdoors, but can sometimes collect in dangerous quantities if flow rates are high enough. However, considering the tens of millions of structures that use the fuel, the individual risk of using natural gas is very low.

Natural gas heating systems are a minor source of carbon monoxide deaths in the United States. According to the US Consumer Product Safety Commission (2008), 56 per cent of unintentional deaths from non-fire CO poisoning were associated with engine-driven tools like gas-powered generators and lawn mowers. Natural gas heating systems accounted for 4 per cent of these deaths. Improvements in natural gas furnace designs have greatly reduced CO poisoning concerns. Detectors are also available that warn of carbon monoxide and/or explosive gas (methane, propane, etc.).

Energy content, statistics, and pricing

Natural gas prices at the Henry Hub in US dollars per million BTUs ($/mmbtu).

Quantities of natural gas are measured in normal cubic meters (corresponding to 0 °C at 101.325 kPa) or in standard cubic feet (corresponding to 60 °F (16 °C) and 14.73 psia). The gross heat of combustion of one cubic meter of commercial quality natural gas is around 39 megajoules (≈10.8 kWh), but this can vary by several percent. This comes to about 49 megajoules (≈13.5 kWh) for one kg of natural gas (assuming 0.8 kg/m^3, an approximate value).[citation needed]

The price of natural gas varies greatly depending on location and type of consumer. In 2007, a price of $7 per 1,000 cubic feet (28 m3) was typical in the United States. The typical caloric value of natural gas is roughly 1,000 British thermal units (BTU) per cubic foot, depending on gas composition. This corresponds to around $7 per million BTU, or around $7 per gigajoule. In April 2008, the wholesale price was $10 per 1,000 cubic feet (28 m3) ($10/MMBTU).[65] The residential price varies from 50 per cent to 300 per cent more than the wholesale price. At the end of 2007, this was $12–$16 per 1,000 cu ft (28 m3).[66] Natural gas in the United States is traded as a futures contract on the New York Mercantile Exchange. Each contract is for 10,000 MMBTU (~10,550 gigajoules), or 10 billion BTU. Thus, if the price of gas is $10 per million BTUs on the NYMEX, the contract is worth $100,000.

European Union

As one of the world's largest importers of natural gas, the EU is a major player on the international gas market.

Gas prices for end users vary greatly across the EU.[67] A single European energy market, one of the key objectives of the European Union, should level the prices of gas in all EU member states.

United States

U.S. Natural Gas Marketed Production (cubic feet) 1900 to 2011 US EIA

In US units, one standard cubic foot of natural gas produces around 1,028 British thermal units (BTU). The actual heating value when the water formed does not condense is the net heat of combustion and can be as much as 10 per cent less.[68]

In the United States, retail sales are often in units of therms (th); 1 therm = 100,000 BTU. Gas meters measure the volume of gas used, and this is converted to therms by multiplying the volume by the energy content of the gas used during that period, which varies slightly over time. Wholesale transactions are generally done in decatherms (Dth), or in thousand decatherms (MDth), or in million decatherms (MMDth). A million decatherms is roughly a billion cubic feet of natural gas. Gas sales to domestic consumers may be in units of 100 standard cubic feet (Ccf).

Canada

Canada uses metric measure for internal trade of petrochemical products. Consequently, natural gas is sold by the Gigajoule, a measure approximately equal to 1/2 of a barrel (250lbs) of oil, or 1 million BTUs, or 1000 cu ft of gas, or 28cu metres of gas.

Elsewhere

In the rest of the world, natural gas is sold in Gigajoule retail units. LNG (liquefied natural gas) and LPG (liquefied petroleum gas) are traded in metric tons or mmBTU as spot deliveries. Long term natural gas distribution contracts are signed in cubic metres, and LNG contracts are in metric tonnes (1,000kg). The LNG and LPG is transported by specialized transport ships, as the gas is liquified at cryogenic temperatures. The specification of each LNG/LPG cargo will usually contain the energy content, but this information is in general not available to the public.

In the Russian Federation, Gazprom sold approximately 250 billion cubic metres of natural gas in 2008.

Natural gas as an asset class for institutional investors

Research conducted by the World Pensions Council (WPC) suggests that large US and Canadian pension funds and Asian and MENA area SWF investors have become particularly active in the fields of natural gas and natural gas infrastructure, a trend started in 2005 by the formation of Scotia Gas Networks in the UK by OMERS and Ontario Teachers' Pension Plan.[32]

See also

References

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    • Petroleum: 10,995
    • Coal: 11,357
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