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New York and Houston - New technologies soon will transform the way U.S. consumers view and use natural gas and could boost demand for natural gas by 60 percent in the next 20 years, according to Fueling the Future: Natural Gas & New Technologies for a Cleaner 21st Century, a study prepared for the American Gas Foundation. These natural gas technologies have the potential to advance the U.S. energy economy much like the Internet has revolutionized worldwide communications.
"Visionary market leaders are using these innovative natural gas technologies to create competitive advantages," said David Parker, a trustee of the American Gas Foundation. Parker is also president and CEO of the American Gas Association, which represents local natural gas utilities.
According to the study, new natural gas technologies may increase consumption of natural gas by almost 60 percent over current levels, from 22 quadrillion Btus (quads) in 1998 to 35 quads by 2020, if U.S. policies encourage greater natural gas use. (A single quad is enough to fuel the city of Cleveland for one year.) On-site generation of electricity using natural gas fuel cells and microturbines is among the many promising technologies that hold significant potential for the natural gas industry, the study found.
"Our study is the first to forecast this level of growth by 2020," said study co-author and former deputy U.S. Secretary of Energy William Martin, "But what makes our study truly unique is where and how we see the growth occurring -- primarily through the use of new technologies."
The Kroger Company, McDonald's and Wal-Mart are among the increasing number of businesses turning to natural gas-fueled on-site power, according to Dave Parker. Parker said, "This exciting technology is highly efficient, environmentally friendly and appealing to customers who value reliability."
New gas technologies represent a tremendous investment opportunity as evidenced by recent acquisitions and IPOs. American companies are poised to reap the economic benefits of this growing demand for gas both in the U.S. and abroad. Parker commented that "American gas utilities and other related companies are at the same stage now as fledgling "Dot.Coms" were five years ago. And so, anyone investing in these stocks could reap similar windfalls."
The study found the jump in demand for natural gas is not expected to make natural gas any more expensive for consumers, because supplies will remain plentiful.
In addition to the promise of distributed generation, Fueling the Future forecasts growth in the industrial market as a result of radical improvements in high-efficiency industrial gas equipment, which will attract many plant operators to natural gas. The study says natural gas cooling and dehumidification systems will drive demand in the commercial market, including hospitals and restaurants such as BOB EVANS FARMS, INC. The use of natural gas fleet vehicles, such as transit buses, will continue to expand in urban areas with air quality concerns.
"Increased use of natural gas - the cleanest fossil fuel -- addresses simultaneously a number of environmental challenges, such as greenhouse gas emissions, acid rain and smog," Parker said.
Washington Policy and Analysis (WPA) completed the study on behalf of the American Gas Foundation. The study's editorial review board included scientists representing the Massachusetts Institute of Technology and the World Resources Institute, among other institutions. WPA is an international consulting firm specializing in energy, environment, trade and technology issues. For more than a decade, WPA has prepared comprehensive studies of the U.S. and global energy outlook, using a combination of energy modeling, scholarly research and market analysis. The American Gas Foundation is a not-for-profit 501(c)(3) organization that was founded in 1989. The Foundation's mission is to advance education about the distribution and transmission of natural gas.
Fueling the Future: Natural Gas & New Technologies for the 21st Century is available in its entirety, along with hyperlinks with additional information about natural gas technologies and organizations, at www.fuelingthefuture.org.
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