Will Natural Gas Fuel Our Future Economy?

HARTENERGY WILL NATURAL GAS FUEL OUR FUTURE ECONOMY? The U.S. had a gross production of about 28 trillion cubic feet (Tcf) of natural gas in 2011. [1] U.S. 28Tcf The U.S. surpassed Russia as the largest The use of shale drilling helped this increase in gas producer in the world. [2] RUSSIA production. [1] 20.5Tcf Because the price of natural gas dropped, [2] The cost of manufacturing has gone down. Thousands of Electricity rates have lowered. jobs have been created. TA MANUFACTURING AND PRODUCTION Because natural gas prices are at a 10-year low, energy is inexpensive, so companies have been moving manufacturing back to the United States. [3) Natural Gas Prices S/Mcf 12 10 8 6. 4 2 1980 1985 1980 1990 2000 2005 2010 Other means of production have benefited from this price drop. Natural gas is a key component in fertilizer companies' products. [4] Their profit margins have improved. [4] Natural gas is used to create anhydrous ammonia, too. (5] With the boost of natural gas usage in the electric power sector, coal consumption is expected to decline. [6] The sector's coal demand is expected to fall about 5% in 2012. Natural gas's share of power generation in the U.S. is expected to increase to 27.1% this year. JOB CREATION In President Obama's 2012 State of the Union address, he said natural-gas development could create more than t*t 600,000 jobs by 2020. 71 The Marcellus play alone created 123,000 new jobs since 2009. [8] 23 of these jobs had an average salary of $77,000. Drilling Marcellus shale added about $10 billion in value to the 2011 Pennsylvania economy. 19) Household Benefits of energy in the More than U.S. 50% of U.S. households is made from natural gas. [10] use natural gas for heat. [10] Average disposable household income is The savings in household energy cost and lower prices for consumer purchases have led to this growth. expected to grow more than $2,000 per year by 2035. [11) Transportation There are about I ///// 112,000 natural gas vehicles on U.S. roads. [12] On average, natural gas costs less than gasoline at the pump. [12] /3 The use of natural gas would help America become energy independent. [12] In general, natural gas vehicles vehicles. [12] emit much less exhaust than gasoline-powered /////// Natural gas has less carbon than other fossil fuels per unit of energy. Because of this, natural gas vehicles produce lower CO2 emissions per vehicle mile traveled. [12] Conclusion The increase of natural gas production and the accompanying lower prices can help to stimulate the economy and create jobs for Americans. SouRces HARTENERGY [1] http://www.eia.gov/naturalgas/monthly/ [2] http://www.washingtonpost.com/opinions/natural-gas-exports- offer-much-to-the-us-economy/2012/03/13/glQA4WibCS_story.html [3] http://www.cbsnews.com/8301-505123_162-57384014/us-recovery- fueled-by-record-low-natural-gas-prices/ [4] http://www.forbes.com/sites/ycharts/2012/03/15/natural-gas- glut-killing-drillers-and-enriching-fertilizer-companies/ [5] http://web.extension.illinois.edu/state/newsdetail.cfm?NewsID=26510 [6] http://www.ugcenter.com/US-Coalbed/Power-Sectors-Coal- Consumption-Declines-Natural-Gas-Usage-Grows_98589 [7] http://www.bloomberg.com/news/2012-01-25/obama-backs- fracking-to-create-600-000-jobs-vows-safe-drilling.html [8] http://www.ugcenter.com/Marcellus/Marcellus-Midstream-2012- Pa-Lt-Gov-Cawley-Marcellus-Providing-Economic-Opportunities-Pennsylvania_98416 [9] http://www.ugcenter.com/item/CERAWeek-Tillerson-Sees-North- America-Leading-Historic-Energy-Transformation_97538 [10] http://www.usatoday.com/money/industries/energy/story/2012- 01-16/low-natural-gas-prices/52592508/1 [11] http://www.oilandgasinvestor.com/OGI-Magazine/Shale-Gas-Jobs-Light-Economy_94274?ch=more-title [12] http://www.ngvc.org/about_ngv/index.html