There are a lot of opinions about America’s energy future, particularly in light of oil spill in the Gulf of Mexico. Yet as Forbes contributor Jonathan Fahey recently pointed out in an article titled “The Future is a (Natural) Gas,” an effective solution already exists:
It’s hard to argue there is a fuel or energy technology more important to the future economy of United States and maybe the world, than natural gas. There’s a lot of it in the U.S., it’s cleaner than the two biggest energy sources, coal (for electricity) and oil (for transportation), and it has the potential to at least partially displace both of them.
Natural gas is already important — it provides 21% of the country’s electricity, it sets the price of electricity in most regions of the country, and is relied upon heavily by industry.
Hopes are high for natural gas in part because there is so much of it. The report estimates there are 16,200 trillion cubic feet (Tcf) of recoverable reserves worldwide, that’s 150 times current annual global consumption. Gas companies could produce 9,000 Tcf of that and make money with gas priced at $4 per million British thermal units (MMBtu). (Recent spot prices in the U.S. were just under $5 per MMBtu.)
If Washington decides to limit carbon either by capping it or taxing it, gas will become even more important. It’s far cleaner than coal and it emits 45% less carbon than coal. Natural gas will have a harder time replacing oil as a transportation fuel, but there are movements spearheaded by T. Boone Pickens and by some lawmakers to promote burning it in the engines of cars and trucks. It will also be able to power cars indirectly, as an electricity source for electric vehicles starting to arrive in showrooms.
Read the entire article HERE.