New energy revolution: US natural gas reserves mounting

Reported natural gas reserve figures have increased the most in US history, raising concerns that renewable energy will struggle to compete against fossil fuel use in the US.

The Energy Information Administration reported figures in an annual report on Tuesday, showing that natural gas reserves rose 11 per cent, or 28.8 trillion cubic feet (tcf), in 2009 to total 284 tcf.

Technological advancements have unlocked vast tracts of gas-bearing shale in the US, revolutionising the energy market- and further extraction success is expected. According to an article from the Economist, "An unconventional glut", published 11th March 2010: "Geologists had always known of [the gas reserves]"

Proved reserves -- which currently stand at the equivalent of 12 years of gas consumption and 3.3 years of oil demand -- represent energy supplies that investigations show could be tapped under current market conditions. Total recoverable reserves could be far higher.

In the Statistical Review of World Energy report published last June, EIA's estimates of 2009 US proved natural gas reserves were 16 per cent higher than the 244.7 trillion cubic feet BP said are viably recoverable in the US.

The plentiful, cheap gas will provide the US with a high level of energy security, with significantly less dependence on gas imports from nations including Russia. EIA researchers said in their report: "These increases demonstrate the possibility of an expanding role for domestic natural gas and crude oil in meeting both current and projected U.S. energy demands."

It is widely believed that there is a global supply of cheap gas that is set to last for years to come, and may soon filter through to markets in Europe, including the UK.

The new development in the energy market is believed to provide further security for some European nations in time, and make them less reliant on petroleum gas imports from Russia.

Natural gas is not a low carbon alternative, but it is a less carbon intense and more economical alternative to oil and coal. The cheap, abundant and lower carbon natural gas is expected to also have a significant impact on both nuclear and renewable energy.

Looking ahead it appears it will be difficult for expensive forms of renewable energy to compete with shale gas. Further investments need to be made in clean energy and technology to harness renewable sources, however gas could be a useful and necessary balancing energy source for intermittent green energy sources.

Russian Energy Minister Sergei Shmatko told reporters on 22nd November, ahead of a meeting with EU officials regarding the European energy market: "Wind and solar will always need a balancing source of energy, and this is a spot where gas generally fits quite well."

The high supply of cheap natural gas is expected to lower the demand for Russian petroleum gas. Natural gas produces less CO2 than other carbon based fuels, however it releases high levels of methane. According to a 2009 New Scientist article written by Kirk Smith, only about half the warming that has occurred up to now is due to CO2. Methane and nitrous oxide are widely considered to be the most significant greenhouse gases. Smith adds: "methane is removed from the atmosphere much more rapidly than CO2, with a half-life of 8.5 years compared with many decades for CO2"

According to Unconventional Wisdom Market Intelligence, "Natural gas can provide a reliable, resilient and economical back up to wind or any other renewable source. This could lead to significantly greater wind generation at lower overall cost."

It is increasingly recognised that a future powered almost entirely by renewable energy is unattainable. The ideological opposition to nuclear energy has led to the undesirable consequence of more coal being burnt. A more realistic view could involve natural gas in the energy mix.

The indication is that natural gas is not an alternative to clean energy, emitting high levels of GHGs, however it looks set to be an alternative to coal and oil for balancing flexible renewable energy, while providing the US for the foreseeable future with greater energy security.

Author: Marianna Keen | Climate Action

Image: todbaker/ Flickr