An Abundant Domestic Source of Energy
/101 natural gas END USE
Distribution
transmission
production
extraction
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/101 natural gas END USE
what is natural gaS?
common components of unprocessed natural gas
Natural gas
originated from
the decomposition
of organic matter
under many layers
of sediment deposits.
Heat, underground
pressure and other
factors created
chemical changes
over time, forming
hydrocarbons such
as natural gas. The
primary component
of natural gas is
methane – the
chemical compound
CH4 – one atom
of carbon and
four hydrogen.
Methane (CH4)
Ethane (C2 H 6)
Propane (C3 H 8)
Butane (C4 H10)
Condensates (C5 H12 – C10 H 22)
Nitrogen (N2)
Carbon Dioxide (CO2)
Hydrogen Sulphide (H2S)
Helium (He)
Natural gas is the cleanest burning fossil fuel
Difference between CNG and LNG
The main combustion byproducts are carbon dioxide (CO 2 )
and water vapour, the same compounds we exhale. Combustion
produces 25 percent less CO 2 than oil and about 50 percent
less than coal.(1) But because of higher efficiency power plants,
this results in CO 2 emissions per kWh that are up to 65 percent
less than coal.
Compressed Natural Gas (CNG): Natural gas condensed under high pressures –
between 2,000 and 3,600 pounds per square inch (psi) – and held in a special,
reinforced container; the gas expands when released for use as a fuel.
Natural gas emits almost no particulates
into the atmosphere: particulates from
natural gas combustion are 90 percent
lower than oil and 99 percent lower than
coal combustion.(2)
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Liquefied Natural Gas (LNG): Natural gas converted temporarily to a liquid form
for ease of storage or transport by cooling it to approximately -162°C (-260°F); (3)
LNG takes up 1/600 of the volume of natural gas in a gaseous state. (4)
ENERGY MIX & EMISSIONS BY SOURCES: USA + CANADA
ENERGY MIX PROPOSED
WITH 25 BCF/D NATURAL
GAS CONVERSION
ENERGY MIX TODAY
1% 5%
8%
20%
9%
4%
12%
4%
23%
33%
39%
Coal
1% 5%
Oil
Natural Gas
Hydro
Nuclear
36%
Wind
Biomass/Other
Source: EIA; StatsCan; Encana estimates
C0 2 EMISSIONS REDUCTIONS:
WITH 25 BCF/D NATURAL GAS CONVERSION
CO2 Emissions (million tonnes)
6.5
Coal and oil displacement are
approximately 1 million metric
tons (2.2 billion lb) and 1.7 million
barrels of oil per day respectively.
6
5.5
Natural gas is an essential part of our daily lives
Canadians and Americans use more than
6.7 trillion cubic feet of natural gas annually (7)
to heat and cool their homes, heat water,
dry their clothing and cook their food.
A very efficient fuel for cooking, 460 Bcf of natural gas is used in the
kitchen each year (8)
Although gas-powered appliances may currently be more expensive
than electrical, they are cheaper to operate, have a longer expected
life and require relatively low maintenance
W ith 55 percent of homes using natural gas for space heating,(9)
the natural gas delivery infrastructure is already in place, making
it very simple and affordable to install natural gas appliances in
those homes
Combined, Canada and the U.S. import
approximately 45 percent of the crude oil
they use.(10)
5
Today
Potential
Natural gas is measured in millions, billions
and trillions of cubic feet.
1 Bcf/d of natural gas could fuel 3.9 million midsized cars to
travel 25,000 kilometres (15,000 miles) per year (5)
35
CLEANER, HEALTHIER AIR: EMISSION REDUCTIONS
ACHIEVED BY USING NATURAL GAS
Mercury
100%
100%
Sulfur Dioxide
100%
99.9%
Particulates
99.8%
91.3%
Nitrogen Oxides
87.4%
78.4%
Carbon Dioxide
64.8%
25.1%
1 Bcf/d of natural gas = 8.3 million U.S. gallons or 31.5 million
litres per day of gasoline equivalent
thousand
north
american
jobs
Emission
Reduction
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
Displacing 1 kWh of coal-based electricity with natural gas
Displacing 1 Gasoline Gallon Equivalent (GGE) of vehicle fuel with natural gas
35,000 North American jobs are created with each additional
Bcf/d of production. (6)
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/101 natural gas END USE
NATURAL GAS IS ONE OF NORTH AMERICA’S
MOST VALUABLE RESOURCES
The Growth Picture
Primary growth opportunities are in unconventional gas – natural
gas from reservoir rocks that are less porous and permeable than
conventional reservoirs.
Simply put, unconventional gas does not readily flow to the well
bore. Examples are tight gas, shales and coalbeds.
Unconventional reservoirs were once thought to be too difficult
to develop. Advanced technologies, such as horizontal drilling,
hydraulic fracturing and multi-lateral wellbores, have made it
possible to profitably unlock these reservoirs at lower and lower
costs. Now about 40 percent of current North American natural
gas production is from unconventional sources.(17)
By 2020, it is expected that nearly 70
percent of Canadian and American natural
gas will be from unconventional reservoirs.(18)
10
Natural gas provides fuel for
million
vehicles
(19)
and is considered safer and cheaper than gasoline. (20)
Natural gas basins
Shale gas plays
Combined, Canada and the U.S. have approximately 100
abundant, affordable natural gas.
(11)
years of clean-burning,
Natural Gas Vehicles Yearly Growth Worldwide
(Millions of vehicles) (Source: iangv.org)
2000
2000Y
2001
2001y
Natural gas is a clean and efficient source of electricity
It takes 60 percent more coal than natural gas to
produce one kilowatt-hour of electricity.(12)
Even if coal generation were as efficient, natural gas would still have almost 50
percent lower CO 2 emissions, 99 percent less sulphur dioxide (SO 2 ) emissions
and zero mercury emissions. (13)
The most advanced coal plants (new technology for completion in 2012 to 2016)
can achieve 38 percent efficiency .(14) They cost twice as much as advanced
combined cycle natural gas plants to build and operate. (15)
About 35 Bcf/d of natural gas in advanced combined cycle natural gas
generation would displace all coal-based generation in the U.S. and yield
emission reductions of about 50 percent in the electricity sector. (16)
What is combined cycle natural gas generation? Waste heat from gas turbine
generated electricity is used to make steam, which is then used to fuel steam
turbines to generate additional electricity, enhancing efficiency as a result.
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2002
2002y
2003
2003y
2004
2004y
2005
2005y
2006
2006y
2007
2007y
2008
2008y
0
2
4
6
8
10
0
2
4
6
8
10
ENDnotes
1. United States Energy
Information Administration
(EIA); Encana estimates
2. EIA
3. Sempra LNG; EIA
4. EIA
5. Encana estimate
6. IHS Insights; CERI
7. EIA; Statistics Canada;
Encana estimates
8. EIA; Encana estimate
9. EIA; Encana estimate
10. EIA; Statistics Canada;
Encana estimate
11. Potential Gas Committee
(PGC); Encana estimate
12. EIA; Encana estimate
13. EIA; Encana estimate
14. EIA; Encana estimate
15. EIA; Encana estimate
16. EIA; Encana estimate
17. IHS Encana estimate
18. IHS Encana estimate
19. International Association
for Natural Gas Vehicles
20. Clean Vehicle Education
Foundation