Running Head: NATURAL GAS AND ITS ROLE IN U.S.

ENERGY

Natural Gas And Its Role In U.S. Energy Markets And Consumption
Joseph Sheaffer and Gabriel Reber
The Pennsylvania State University

NATURAL GAS AND ITS ROLE IN GLOBAL ENERGY

Abstract
Natural gas, like other fossil fuels, is made up of the remains of ancient plants and other
organisms that decomposed over millions of years to form useable hydrocarbons. Also like other
fossil fuels, natural gas is combustible, which makes it effective as a fuel source. For the past few
centuries, fossil fuels such as petroleum and coal have been the main fossil fuels in use by the
American people. However, more recently, natural gas has been on the rise. This can be
attributed to its cheapness, as well as the multitude of ways that one can use natural gas. From
residential and industrial sectors to electricity production, natural gas is utilized in many different
areas of the American economy. In fact, it is catching up to coal and petroleum in terms of
overall usage. Also, advancements in extraction such as hydraulic fracturing have opened up
huge swaths of natural gas to energy corporations. However, the relative safety and
environmental impact of hydraulic fracturing, or fracking has come into question, despite the
lack of government regulation of the practice. This essay examines the properties and uses of
natural gas, as well as discussing the impacts of its extraction and eventual utilization.

NATURAL GAS AND ITS ROLE IN GLOBAL ENERGY

Natural Gas and its Role in U.S. Energy Markets and Consumption
Currently, the human race is in an age where we require constant electricity and energy to
keep society moving. In order to meet the high demand for energy, there is a constant search for
more efficient energy sources. While searching for these sources, the safety and the protection of
the environment must also be considered. This paper looks at natural gas and its role in global
energy. The science behind natural gas is also broken down bit by bit, so as to provide a better
understanding of the compound itself. Using the research of Sovacool and Pierce, the extraction
process and retrieval of natural gas is examined.
The future of natural gas as an energy resource lies within the extraction process known
as hydraulic fracturing, or fracking. This drilling technique has allowed for a boom in gas
production, despite leaving many questioning its safety and environmental impact. This paper
examines both the positive and negative impacts that arise from hydrofracking.
The goal of the paper is to cumulate existing research into a report that provides a view of
the natural gas industry. While this is a broad topic to examine, the research was done to
establish an overview of natural gas. Using the evidence from the sources, conclusions were
drawn. Claims were only made if there were statistics strong enough to back up the statements.
Literature Review
For the very basic information about the compounds that make up natural gas,
Wisconsin.edus SciFun section worked quite well. It listed each different hydrocarbon that
could be found in natural gas. The site also gave a comprehensive explanation of methane, which
is what makes up a majority of natural gas per part.

NATURAL GAS AND ITS ROLE IN GLOBAL ENERGY

4
The EIA was a very good source for finding out exact numbers pertaining to
consumption. For instance, 5,072,030,000,000 cubic feet of natural gas is pumped into American
homes for residential use annually, as of 2014 (EIA, 2014). A large amount of natural gas that
goes to residential consumers is used for space heating -- according to Naturalgas.org, 56% of
homes use natural gas for their heating needs (Naturalgas.org, 2013). Also, Naturalgas,org states
that natural gas heating is one of the most efficient methods of energy conversion, with high-end
heaters having an efficiency of close to 90%. This, coupled with gas relative cheapness, is the
main reason why it is so popular to the typical American consumer, and becoming even more
popular, with 60-70% of new homes built each year being fitted with a gas heating system.
. Also, the EIA listed the Industrial sector as the second largest consumer of natural gas,
with 7,655,184,000,000 cubic feet consumed per annum in the United States -- the largest
consumer is the production of electricity (EIA, 2014). While Naturalgas.org explains that some
of this industrial gas goes into the same processes as in residential sectors, such as space heating
and appliances, there are many other uses for this fuel in industry that are detailed on the site as
well (Naturalgas.org, 2013). For instance, natural gas is often used to heat metals and incinerate
waste. Also, the different compounds in natural gas can be used as building blocks for other
chemicals -- the most important of which is methanol, a liquid that, according to Methanol.org,
can be used as fuel in certain fuel cells (Methanol Institute, 2011).
In the Encyclopedia of Energy, Pierce provided a strong basis of facts pertaining to
natural gas (2012). Natural gas was the worlds fastest growing fossil fuel in 2010 (Pierce, 2012).
It is growing rapidly because of its untapped reserves. According to the EIA, there are 48 shale
basins around the world that contain 70 shale formations (Sovacool, 2014). In total, there are

NATURAL GAS AND ITS ROLE IN GLOBAL ENERGY

5
5,760 trillion cubic feet of recoverable gas (Sovacool, 2014). Throughout the northeastern United
States alone, there is an estimated 1.9 trillion cubic feet of gas (Pierce, 2012). This large supply
is causing drilling companies to target these states for hydraulic fracturing (2012).
According to Pierce, the Fracking process involves drilling a horizontal well into shale,
then flooding the well with large volumes of water, sand, proppants and lubricants. From this
process, small cracks are created and gas that was previously unreachable can now be collected
(2012). Sovacools research indicates that most drilling sites in the United States need between
2.7 and 3.9 million gallons of water per well. The production of shale gas can damage the quality
of water (2014). Toxins and other gasses are released during the drilling process, which can lead
to health problems (Pierce, 2012). This drilling process produces waste that needs to be properly
treated and disposed of, or else pollution will occur (Sovacool, 2014). In fact, there are accounts
of contaminated water wells near some drilling sites (Pierce, 2012).
Sovacool looks at the methane emissions from fractal drilling, and the negative impact
they can have. The process of fracking allows for methane emissions to be released into the
atmosphere. This greenhouse gas is 20 times more damaging than carbon dioxide (Sovacool,
2014). Methane emissions from shale gas are 130-200% worse than those from conventional
natural gas (2014). The proponents of fracking and the opponents have tension growing between
them as the economic incentives for drilling have been increasing (Pierce, 2012).
Based on Sovacools research, natural gas typically ranges from $2 to $3 per thousand
feet of cubic feet of gas, which is about 50-66% cheaper than conventional gas wells. Advances
in technology have the potential to drive down prices even more (2014). According to Pierce,
natural gas burns cleaner than other fossil fuels, which has led to its increase in popularity

NATURAL GAS AND ITS ROLE IN GLOBAL ENERGY

6
(2012). There are lower admissions of sulfur oxides, nitrogen oxides, and mercury from natural
gas than from coal and oil (Sovacool, 2014).
Discussion
Natural gas is a compound that is made up of a combination of many different
molecules of similar nature. The majority of natural gas per part -- 75%, to be exact -- is
comprised of methane. Methane is a hydrocarbon with a chemical symbol of CH4, which, broken
down, is made up of one atom of carbon bonded to four atoms of hydrogen (Wisconsin.edu).
Along with a few other hydrocarbons, methane is a gas at room temperature, with a boiling point
of -164C. Also, similar to other molecules of the same group, methane is highly reactive; a
mixture as low as 5% with air is flammable. Other hydrocarbons that make up natural gas
include ethane, propane and butane.
Like petroleum and coal, natural gas is a fossil fuel, meaning it is a compound that is left
over from the decomposition of organic plant and animal matter over millions of years (Fossil
Fuels-IER, 2015). While still living, these organisms gathered energy from the Sun, and through
fossil fuels humans are able to access it. The vestiges of biomatter in the form of carbon and
hydrogen atoms allow these compounds to burn and release swaths of stored energy. Ever since
the Industrial Revolution of the 19th century, human civilization has utilized fossil fuels to
provide power for its rapid expansion and tremendous infrastructure, especially in developed
nations. In modern times, fossil fuels provide the overwhelming majority of energy in the United
States, as well as much of the developed world.
Natural gas is, as a whole, largely untapped and unused as a fossil fuel by developed
nations. During the economic downturn, when oil prices were surging, some looked for new,

NATURAL GAS AND ITS ROLE IN GLOBAL ENERGY

7
more cost-effective energy sources. Hydrofracking technology enabled natural gas to be
recovered in more efficient ways. Drilling corporations have seized upon this opportunity,
consequently making natural gas the fastest growing fossil fuel in terms of use in 2010 (Pierce,
2012). There is a lot of potential for companies and landowners to make a lot of money by
selling natural gas, especially in the northeastern United States, where there are 1.9 trillion cubic
feet of gas available (Pierce, 2012).
Not only is there a financial incentive for natural gas producers, but the consumers have
the opportunity to a save a lot as well. Through fracking, this fossil fuel has become very cheap.
In comparison to conventional gas, natural gas is 50-66% cheaper (Sovacool, 2014). As new
technology is introduced, the price will only continue to decrease. Natural gas is being primarily
utilized in electricity production, residential uses, and industry, in amounts such as 8 trillion, 5
trillion, and 7.6 trillion cubic feet, respectively. (EIA, 2014). Shrinking prices have led to
increases in its use in these areas, while also leading to the explorations of its use in
transportation. Currently only a small percentage of natural gas is used in transportation fuels,
but as prices plummet and new technology is created, this use could increase. Businesses and
individuals alike have financial incentives to increase natural gas drilling and production.
The sources above discuss the gains that can be made by utilizing natural gas as an
energy fuel. They also look at the environmental impacts that can result from hydrofracking. The
process requires a lot of water, so therefore the areas that have water shortages are unable to use
this drilling technique. Most drilling sites in the United States require nearly 3 million gallons of
water per well (Sovacool, 2014). Water used in fracking also becomes contaminated if not
properly disposed of, which is a major health risk. In the United States, a relative lack of strict

NATURAL GAS AND ITS ROLE IN GLOBAL ENERGY

8
regulations has allowed for natural gas production to rapidly increase. To many, however, the
contamination of water is not worth the financial compensations.
During this gas boom, many energy corporations have not taken their own environmental
impact into account. The above research discusses the impact of water contamination, as well as
air pollution. Fracking allows methane to be released into the atmosphere, which is 20 times
more destructive than carbon dioxide (Sovacool, 2014). Natural gas is often advertised as a
clean fossil fuel because it is low in the carbon dioxide emissions. This has led to its recent
increase in popularity (Pierce, 2012). However, this can be misleading since methane is more
damaging.
Policy on natural gas drilling has not been very strict in the United States, which has led
to its booming industry. States with large amounts of fracking, e.g Pennsylvania, have been
especially lenient with regulations. These relaxed policies are starting to change as the negative
ramifications from fracking are becoming more known. Recently, the EPA proposed stricter
regulations (Oil and Natural Gas Air Pollution Standards, 2015). Northeastern states are starting
to look much closer at the natural gas industry. For example, New York has banned fracking
(Conca, 2014). There is a future in natural gas as a powerful energy source, but its environmental
impact may deter it from gaining more traction.
Conclusion
In the wake of events such as the meteoric rise of gas prices and ominous predictions
about peak oil, it is about time that society starts looking for an alternative fuel that is more
reliable and less impactful toward the environment than sources such as coal and petroleum. For
a while, it looked as if natural gas would be this alternative energy source. It is cheap, much

NATURAL GAS AND ITS ROLE IN GLOBAL ENERGY

9
more abundant than we had thought, and was thought to be cleaner than other fossil fuels. After
more research, however, it had been proven that natural gas is not as clean as was previously
thought. While, yes, it does give off less carbon dioxide, natural gas is made up of mostly
methane, which in itself is a very potent greenhouse gas. Also, there are many environmental
impacts from the extraction of the fuel. The newest method of natural gas extraction, hydraulic
fracturing, is now well known to have negative effects on the environment; from egregious water
usage to the contamination of the surrounding area.
Despite these shortcomings, natural gas is still becoming increasingly popular as a fuel
source in the United States. This is probably due to the aforementioned cheapness, as well as the
ease in which energy corporations are able to extract and utilize the fuel. The federal and state
governments have, for the most part, kept most regulations out of the natural gas industry, except
for a few instances. This holds especially true for fracking. However, grassroots movements and
campaigns aim to bring more attention to the dangers of collecting and using natural gas. At this
point, this movement towards awareness has had little effect on the growth of the industry. In the
near future, unless the American populace becomes truly aware of the inherent dangers of natural
gas, it is likely that this trend will continue.

NATURAL GAS AND ITS ROLE IN GLOBAL ENERGY

10

References
Chemical of the Week -- Methane. (n.d.). Retrieved April 16, 2015.
Cleveland, C. (2004). Natural Gas. In Encyclopedia of energy (Vol. 3, pp. 879-884). Amsterdam:
Elsevier Academic Press.
Conca, J. (2014, December 27). New York Fracking Ban Contrary to State's Energy Future.
Retrieved April 19, 2015.
Energy Efficiency. (2015). Retrieved April 16, 2015.
Fossil Fuels - IER. (2015). Retrieved April 17, 2015.
Methanol Basics. (2011). Retrieved April 18, 2015.
NaturalGas.org. (2013, September 20). Retrieved April 17, 2015.
Oil and Natural Gas Air Pollution Standards. (2015). Retrieved April 19, 2015.
Pierce, M. A. (Ed.). (2012). Encyclopedia of Energy. Ipswich, MA, USA: Salem Press.
Sovacool, B. (2014). Cornucopia or Curse? Reviewing the Costs and Benefits of Shale Gas
Hydraulic Fracturing (Fracking). Renewable & Sustainable Energy Reviews, 37, 249-264.
U.S. Energy Information Administration - EIA - Independent Statistics and Analysis. (2015).
Retrieved April 16, 2015.