7 Comments

    • Compressed Natural Gas: Key to American Energy Independence? [view article]
      Medium Dave: We import about 15 % of our gas from Canada because it's cheaper to send gas down from Canada to New England, Michigan, Wisconsin, Washington State, etc. than bringing it up from Louisiana or Texas --- not because we don't have the gas.

      As to the study done for the American Clean Skies Foundation, just because they are supportive of natural gas, doesn't mean the study is incorrect. Just Google "gas shale" and see all the hits. The NY Times just ran a long story on the extraordinary prospects for gas shale. I'm confident that the 2009 Potential Gas Agency estimate of gas resources will reflect a huge jump in gas from shale (and be very close to the American Clean Skies number).

      Finally, why do you assume that the current mix of gas use is the optimal mix. Shouldn't the market decide which is a high valued market and which is a low priority one? Last year, the average price paid for natural gas per million Btus by market was: Power generation: $ 6.90; Industrial: $ 7.04: Commercial: $10.75; and Residential: $12.52. When gasoline is selling at $4.00 per gallon, it is selling at $32.00 per million Btus. Let's say that natural gas needs to sell at a 25% discount to gasoline to attract customers. That's $24.00 per MMBtu. Therefore, the market says that NGVs are the highest valued of all the markets. Pickens wants to move gas from the lowest priority market (power generation) to the highest (NGVs). What's wrong with that?
      Aug 27 11:32 AM
    • Compressed Natural Gas: Key to American Energy Independence? [view article]
      ZE: The study in question was paid for by the American Clean Skies Foundation. It was actually performed by Navigant Consulting. The Potential Gas Agency will do its next estimate next year. I'll bet the numbers will be close to the Navigant study's estimate. Aug 26 04:14 PM
    • Compressed Natural Gas: Key to American Energy Independence? [view article]
      Paul8756: Yes on the hydrate work. Japan, Canada, Russia, Korea and the US are all working on projects. In fact, japan wants commercial production within 10 years. Aug 26 04:05 PM
    • Compressed Natural Gas: Key to American Energy Independence? [view article]
      happycajun: No one said NGVs are a "silver bullet." There is no silver bullet. We don't have alt fuel choices; We have to use them all. We use roughly 200 billion gallons of gasoline per year and 50 billion gallons of diesel. Displacing all the NG from power gen (the Pickens Plan), would be enough jto just displace the diesel we use. A great goal, but not a panacea. Could we get there? Maybe. But it will take a while. However, until we start, nothing will happen. Waiting for something magical to come along is a bad strategy. We need to use the technology that's available and economic NOW. And NGVs is one of those technologies. Aug 26 04:01 PM
    • Compressed Natural Gas: Key to American Energy Independence? [view article]
      As to taxes, natural gas at the pump pays the same federal excise tax as gasoline (18.3 cents per GGE). State tax policies differ.

      As to supply, where do I begin? In 1990 the Potential Gas Agency (the experts) estimated that, in the US, we had 1100 trillion cubic feet (Tcf) of gas resources (i.e., gas that could be produced economically at that time). We produce a little over 19 Tcf per year in the US. From 1990 to 2006, we produced and consumed about 300 Tcf. In 2007, the Potential Gas Agency estimated that we had 1500 Tcf in gas resources. Technology and economics had changed. Last month, a study by Navigant Consulting concluded the real number is closer to 2200 Tcf, primarily because we now know how to produce gas from gas shale economically. This would be 118 years of supply at current US production levels.
      There also is the issue of methane hydrates. This is methane trapped in ice structures found off of every continent. It is estimated by the USGS that there is twice as much energy trapped in methane hydrates than in all the oil, coal and natural gas combined. The problem is that we don’t yet know how to mine it. But, keep in mind, we didn’t know now to mine gas from shale 15 years ago, and now it’s half our resource base.
      Oh … and then there is biomethane. Methane is produced when organic matter decomposes without oxygen. DOE estimates that we could produce 1.25 Tcf PER YEAR easily from just landfill gas, sewage and animal waste alone. This is enough to fuel 10 million average cars. Importantly, in Europe, they have concluded that producing biomethane from cellulosic matter (crop waste and energy crops like switchgrass) is far more productive and less expensive than producing cellulosic ethanol. Cellulosic biomethane could provide a virtually inexhaustible supply of renewable methane.
      Anyone that uses the “we’re running out of gas” argument against moving to NGVs is either misinformed or has another agenda.

      As to price, unlike with oil, the US is not tied to world natural gas prices. Except for one small exception, there is no way to export natural gas from North America. As a result, while the world price is about $13 per MMBtu, the average US price is now below $8. (That’s $1 per GGE at the wellhead.) We have several LNG terminals in the US to import liquefied natural gas. Unfortunately for them, they can’t compete with the low US prices, and, therefore, are only operating at about 20% capacity – and that’s need just to keep the terminals from shutting down.
      Aug 26 01:23 PM
    • Implementing Pickens' Plan for Public Energy Policy [view article]
      Paulk8756:
      The Honda Civic GX does qualify for the federal tax credit of $4,000, but Civic GX sells for $5,000 more than its gasoline twin. NGVs inherently cost more than a gasoline vehicle. The biggest difference is the fuel storage tanks. Gasoline is stored in an inexpensive rigid plastic bag. Because natural gas is stored at 3600 psi, the tanks must able to handle twice that pressure for safety. That's not cheap. Also, most US vehicles use Type 4 tanks. They're much lighter than the all metal tanks but they are more expensive. Honda had the higher incremental price even before the tax credit went into effect in 2006.
      Jul 17 03:13 PM
    • Implementing Pickens' Plan for Public Energy Policy [view article]
      To Bill Lo: Westport Technologies already makes a class 8 heavy-duty natural gas engine. Kenworth offers in it in a class 8 truck. It costs much less to operate than a comparable diesel truck.


      To Maurice: We're finding much more gas than we're extracting. In 1990, the Potential Gas Agency (the experts on the subject) estimated that America had 1100 trillion cubic feet (Tcf) of recoverable gas resources. Since then we've produced and used 300 Tcf. Last year, the Potental Gas Agency estimated that America had 1500 Tcf of recoverable gas resources. As technology improves and economics change, we keep finding more gas. Google "gas shale". It's very excting.

      To gadgethound: Natural gas vehicles are better for greenhouse gases, but their not zero. The Caliofrnia Energy Commission recently reported that natural gas vehicles produce 22% less greenhouse gases than diesel vehilces and 29% less than gasoline vehicles.

      To Brahm: Yikes! Where do I start. Pickens is NOT proposing diesel fuel made from natural gas. He's proposing the direct use of natural gas in light-, medium- and heavy-duty engines. As to safety, natural gas is safer than gasoline. If gasoline was not yet a vehicle fuel and you tried to introduce it today, it would not be possible. Too dangerous. We just are use to and accept the dangers. Look at it this way, we already use natural gas for vehicles, but no one uses gasoline in their homes for cooking and heating. As to an infrastructure, America already has 1.6 million miles of gas lines bringing gas to every major population area in the country. As to price, when gasoline is $4.00 per gallon, it is selling at $32.00 per million Btus. Natural gas is selling about $12.00 a million BTU at the wellhead. That's $1.50 per gallon equivalent. Add $1 for transmission, taxes, compression, and profit. $2.50 is much better than $4.00. Also note that natural gas is sold as a "gasoline gallon equivalent" or 124,800 Btu. Because almost all gasoline is now blended with ethanol (which has less energy per liquid gallon), a gallon of gasoline is no lionger 124,800 Btu. The more ethanol, the less energy in a gallon. So, natural gas is providing more energy and at $2.50 per gallon.

      To bones33: Boone Pickens is 80 years old and a multi-billionaire. He's given away to charity over $700 million. Maybe he actually believes that America has a big energy problem and maybe he actually believes that he has a plan that will work. Keep in mind that both wind power and natural gas vehicles are here-and-now technologies. Neither requires major technical breakthroughs and neither requires a decade of lead time. Maybe we ought to use the tools we have today rather then hope that a silver bullet answer magically will come along some day.
      Jul 16 11:55 PM
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