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Introduction to “Conventional” Natural Gas. Kenneth M. Klemow, Ph.D. BIO / EES 105 at Wilkes University. What is natural gas?. Composed mainly of methane and other molecules. About methane: Energy content: 55.7 kJ/g Vaporization point: -260oF 160oC. NG has two general forms.
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Introduction to “Conventional” Natural Gas Kenneth M. Klemow, Ph.D. BIO / EES 105 at Wilkes University
What is natural gas? • Composed mainly of methane and other molecules. • About methane: • Energy content: 55.7 kJ/g • Vaporization point: -260oF 160oC
NG has two general forms • Thermogenic – From breakdown of fossil organic matter below earth’s surface • Hundreds of feet to miles below surface • Need heat and pressure • Biogenic – From breakdown of organic matter at earth’s surface. • Decomposition without oxygen • Wetlands, garbage dumps
Wet Gas Vs Dry Gas • Dry gas – mainly methane • Wet gas – includes ethane, propane butane
Conventional vs Unconventional Natural Gas • Conventional gas • Relatively easy to extract • Forms include • Associated with oil • Not associated with oil • Can be onshore or offshore • Unconventional gas • More difficult to extract • Derived from • Shale, coal-bed
Geology of gas http://www.safehaven.com/article/16566/shale-gas-miracle-pill-or-empty-promise
How does thermogenic NG form? • Organic matter gets buried by other sediments • Breaks down without oxygen under pressure, forming hydrocarbons • Temperature dependent • Lower – petroleum • Higher – methane • Often gas mixed with petroleum, released when pressure reduced.
History of natural gas development • First isolated by Chinese about 500 BC. • Captured gas seeping from ground, piped it using crude pipelines. • Mid-19th Century • Burned off during oil production (flaring) • Early 20th Century • Pipelines constructed to capture and transport
Gas utilization • Energy • Electrical generation • Heating / cooking • Transportation • Feedstock for industrial processes • Plastics • Organic chemicals • Fertilizers
Energy use of natural gas http://www.c2es.org/publications/natural-gas-markets-use-overview
Conventional well production • Geologists find gas reservoir • Drill borehole • Case well in steel and concrete • Gas flows upward • Captured into pipeline
Wells sometimes need to be stimulated • Add acid, water, or gases to promote NG flow from the well http://www.businessweek.com
Natural gas must be processed • Remove impurities • Hydrocarbons (ethane, propane, butane) • Hydrogen sulfide • Water vapor • Nitrogen compounds
Gas distribution system http://www.c2es.org/publications/natural-gas-infrastructure
NG can be compressed and liquified • Both reduce volume making it easier to transport
CNG – Compressed to 1% original volume • Used as a fuel for vehicles • Cars, trucks, buses, locomotives • Some engines run on both CNG and gasoline • Common in Iran, Pakistan, Argentina, Brazil • Efforts to increase use in US http://www.ngvglobal.com/ http://gas2.org/
LNG – Cooled to -260oF • Has 2.4 times more energy than CNG • Transported via trucks and ships where pipelines not present • Must be stored in cryogenic tanks • Not used as fuel http://ubpost.mongolnews.mn http://cryptome.org/eyeball/lng/lng-eyeball.htm
Pricing natural gas • Natural gas sold by volume • Typical basis 1000 cubic feet (Mcf) • Also used • 1 million cf (MMcf) • 1 billion cf (Bcf) • 1 trillion cf (Tcf) • 1 Mcf = 1 million BTU
Pricing natural gas • Different prices often quoted • Wellhead – Unprocessed NG at well • Henry Hub – Port in Louisiana, used as basis for NY Mercantile Exchange • Futures price – Contract price for specified amount of gas at specified time • City Gate – Price paid by utility receiving gas from major pipeline • Electric Power price – Paid by electric utility • Residential price – Paid by consumer
Pricing natural gas http://geology.com/articles/natural-gas-prices/
Pricing long term trend http://geology.com/articles/natural-gas-prices/
Pricing NG – more recently http://marketrealist.com/2013/05/natural-gas-rig-count-fell-by-four-last-week-down-20-since-start-of-2013/
Pricing NG – Comparing fuels http://www.aei-ideas.org/2013/02/us-households-will-save-billions-in-2012-from-falling-natural-gas-prices-offsetting-higher-gasoline-prices/
International price trends http://ourfiniteworld.com/2012/03/23/why-us-natural-gas-prices-are-so-low-are-changes-needed/
Benefits of Conventional Natural Gas • High energy density • Less polluting than coal • Easy to transport • Does not cause radioactivity • Reliable
Drawbacks of Conventional Natural Gas • Burning releases greenhouse gases • Drilling and pipelines impacts habitat • Supplies dwindling