Natural Gas

Question 2

Nat Gas: Current growth trend? Drivers of growth? (Global + US)

Answer 2

Trend: global consumption is +3.5%/yr since 1965 (US: +1%/yr). Drivers: new technologies/policies (e.g., horizontal drilling/frac-ing)

Question 3

Nat Gas: Formation (condition+ingredients)

Answer 3

woody peaty plants. Sedimentary porous rock contains methane (nat gas is >90% CH4) trapped beneath cap rock. Can coexist w/ oil

Question 4

Nat Gas: Qualifying Terms

Answer 4

Sweet vs Sour (low/high sulfur), Associated/Non-associated (w/wo(88% PR) oil production). Conventional/Unconventional (high/low permeability)

Question 5

Nat Gas: Types of Unconventional Reservoirs

Answer 5

Shale Gas, Tight sands, Coalbed Methane

Question 6

Nat Gas: Geologic Terms

Answer 6

Basin. Reservoir. Play (similar geology geography or temporal properties)

Question 7

Nat Gas: Global Use/Electricity use

Answer 7

Global (Energy Use: 24%, Electricity use: 22%). World Elec use accts for 35% of total primary energy

Question 8

Nat Gas: US Use/Electricity use

Answer 8

US (Energy use: 26%, Electricity: 25%). #1 use of Nat Gas is elec gen. Nat Gas accounted for 80% of new generators from 2001-2010

Question 9

Nat Gas: Reserve Countries

Answer 9

7400 TCF. Russia + Iran + Qatar = 49%

Question 10

Nat Gas: Production Countries

Answer 10

116 TCF. Russia + US

Question 11

Nat Gas: 1 TCM = ? TCF

Answer 11

1 TCM = 35.3 TCF

Question 12

Nat Gas: Global R/P Ratio? Trends?

Answer 12

Reserves are growth with Production. Global R/P ~ 65yrs

Question 13

Nat Gas: Consumer Countries

Answer 13

Asia. Global consumption growth rate = 2.4%

Question 14

Nat Gas: US Reserves + Production

Answer 14

Texas (29% reserves + production). US consumes 24.4 TCF/yr, produces 23TCF/yr, R/P: 13yrs

Question 15

Nat Gas: US Rig count to Production trends

Answer 15

Record drilling in 2008, increasing production with 1/3 the rigs (technology). However avg/well is down b/c old wells

Question 16

Nat Gas: Whole Process

Answer 16

Extraction, processing, transport, consumption/storage

Question 17

Nat Gas: Refining + Pipeline Specs

Answer 17

Nat Gas needs little refining. Pipeline Specs (1035 Btu/cf, HC Tdew, trace impurities+particulates)

Question 18

Nat Gas: GTL

Answer 18

Fischer Tropsch. Less than 0.3% of world liquid fuels

Question 19

Nat Gas: Transport

Answer 19

300,00 US miles (2/3 global) of Pipeline (low energy density). Compressed (100miles) to 200-1500 psi. Compressing takes 3% of energy.

Question 20

Nat Gas: Pipeline Trade Movement

Answer 20

Buyer: US (13%). Seller: Rus (30%). Trader (Can-US, 13%)

Question 21

Nat Gas: LNG movement

Answer 21

Ships. Buyer: Japan (32%). Seller: Qatar (31%). Trader Japan (6%). Internat trade is growing

Question 22

Nat Gas: LNG production

Answer 22

1/600 vol of Nat Gas. Made for transport/storage. Cooled to -260F. Uses a ton of energy, increass GHG by 25%

Question 23

Nat Gas: LNG siting is contentious

Answer 23

Jurisdiction? (FERC, US Coast Guard, DoT, DOE) Main issues? (failures, safety, CO2e)

Question 24

Nat Gas: Why use Nat Gas for electric power (6)

Answer 24

Meet demands, scalable, low NIMBY, reasonable cost, high eff, low emissions

Question 25

Nat Gas: Enviro Impacts

Answer 25

Leakage from storage, explosions, compressor contamination, pollution,

Question 26

Nat Gas: Price Drivers

Answer 26

Weather, Economy, Technology

Question 27

Nat Gas: Future

Answer 27

Efficiency, GHG, costs, Transportation Fuel,