NATURAL GASnature’s choice for clean energy

www.nationalfuelgas.com

Technical Review Provided By:

Global Environmental Specialistswww.ene.com

ecology and environment, inc.

IT’S MORE EFFICIENT…

HAS LOWER EMISSIONS…

IS MORE ECONOMICAL…

…AND PROMOTESENERGY SECURITY

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IntroductionClean, efficient, abundant, American-produced natural gas offers a realistic solution, helping to reduce greenhouse gas emissions while at the same time providing the reasonably priced, reliable energy source our country needs to sustain and grow our economy. With global climate change on every-one’s mind and how to lighten our “carbon footprint” on everyone’s to-do list, all the talk is about switching to renewable “green” fuels, such as wind and solar energy. Realistically, however, these energy sources currently only supply about 2% to 3% of our nation’s energy needs and cannot be the only solution to help us reduce greenhouse gas emissions to levels considered “safe” by most scientists.

Natural gas is part of the carbon management and

energy security solution.

You might ask why natural gas? When compared to other traditional fuels it’s the natural choice.

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EmissionsNatural gas—among the cleanest, most efficient, cost effective, and abundant energy sources in the United States—produces less harmful emissions than its fuel counterparts: coal, oil, and propane.

Natural gas produces less carbon dioxide (CO2)—the primary greenhouse gas believed to be contributing to global climate change—than other commonly used energy sources. The primary byproducts from the use of natural gas are CO2 and water. In fact, natural gas energy emits approximately 45% less CO2 than coal fueled electricity and nearly 30% less CO2 than fuel oil.

Natural gas produces virtually no emissions of sulfur dioxide (SO2)—the primary pollutant that forms acid rain—particulate matter, or mercury, and far less nitrogen oxides (NOx)—the primary precursor in the formation of smog—than either coal or oil. In addition, it produces virtually no solid waste and has much less impact on water quality than these competing energy sources.

POUNDS PER BILLION BTU OF ENERGY INPUTEMISSIONS

SOURCE: Energy Information AdministrationPOUNDS PER BILLION BTU OF ENERGY INPUT

EMISSIONS

SOURCE: Energy Information Administration

NATURAL GAS COALOIL

SO2CO2 NOX PARTICULATES

NATURALGAS

NATURALGAS

NATURALGAS

NATURALGAS

Natural gas is among the most efficient and cleanest energy sources.

OIL$16.22

MMBTU

PROPANE$21.02

MMBTU

ELECTRICITY$33.41

MMBTU

NATURALGAS

$11.12MMBTU

2009 U.S. REPRESENTATIVEAVERAGE UNIT COST

SOURCE: US DOE, Federal Register, Vol. 74

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EfficiencyElectricity has to be produced at large central plants by using something else as a fuel source. While this process can generate a lot of power, it also generates a lot of waste—and wastes a lot of energy. The environmental impacts from energy consumption apply to more than the energy used directly at our homes and businesses.

Natural gas is three times as efficient as

electricity when total energy efficiency is compared.

Centralized electricity consumes significant energy, with resulting polluting emissions, during all stages of production and delivery. The point of greatest inefficiency is at the electric generating plant, where roughly two-thirds of the input energy is lost as heat in the production of steam to turn large turbine/generators.

Don’t be fooled by the stated higher end-use efficiency of electric equipment. In a particular end-use application, such as water heating, the total energy required for the gas option is less when total fuel cycle is considered. The overall efficiency of natural gas more than offsets the difference.

When the entire cycle of producing, processing, and transporting is considered, natural gas is delivered to the consumer with a “total energy efficiency” of about 90% compared with about 27% for electricity.

NATURAL GAS

ELECTRICITY

Extraction,Processing, andTransportation

Losses

ConversionLosses

Extraction, Processing,and Transportation

Losses

Based on Current Fossil Fuel Mix of Coal, Oil, and Natural GasSOURCE: Energy Solutions Center

DistributionLosses

DistributionLosses

29UNITS OFENERGY

88UNITS OFENERGY

92UNITS OFENERGY

27UNITS DELIVERED

TO CUSTOMER

90UNITS DELIVERED

TO CUSTOMER

100UNITS OF SOURCE

ENERGY

100UNITS OF SOURCE

ENERGY

OIL$16.22

MMBTU

PROPANE$21.02

MMBTU

ELECTRICITY$33.41

MMBTU

NATURALGAS

$11.12MMBTU

2009 U.S. REPRESENTATIVEAVERAGE UNIT COST

SOURCE: US DOE, Federal Register, Vol. 74

OF SUPPLYFROM U.S. NATURAL

GAS RESERVES

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Compared with Other Energy Sources, Natural Gas is the Most EconomicalAlthough the actual prices vary across the country, natural gas is largely the most economical form of energy available regardless of which competing fuel it is measured against, the appli-cation involved, or the geographic location of the consumer.

When equivalent energy content is considered, natural gas is the most economical energy choice for residential and commercial applications.

Nearly all of the natural gas used in the U.S. is from North America sources, unlike oil, 60% of which is imported from foreign, and often, politically unstable countries.

Energy SecurityToday, approximately 85% of the natural gas used in the U.S. is produced domestically, with the remaining 15% coming primarily from Canada. Advances in technology have made finding and producing natural gas more efficient and successful with less impact on the environment. New and evolving technology also helps natural gas producers extract new resources from old, mature fields.

The natural gas resource base continues to expand—estimates of its size are larger today than in the early 1990s, with the current estimate at a 100-year supply. Since natural gas is produced here in the U.S., higher demand for gas will create jobs here in the U.S. Furthermore, natural gas is a reliable source of fuel because the pipeline delivery system is underground and protected from weather-related and unforeseen disruptions.

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Comparing the benefits of natural gasEnergy Source Emissions Efficiency and Economics Energy Reliability/Security

Natural Gas

Electricity

Oil

Propane

Wood

Very efficient, delivering approximately 90% of source energy to households, and typically less expensive than competing fuels

Fossil fuel plants are very inefficient, delivering less than 30% of source energy to households, electricity is typically 2 to 4 times more expensive on an energy-equivalent basis

Fuel oil is more expensive on an energy- equivalent basis and requires higher expense to clean and maintain

Propane is more expensive on an energy equivalent basis, very regionalized and highly variable

Wood is very inefficient and requires hauling, storage, and ash disposal; prices are regionalized and highly variable

97% of U.S. natural gas supply is produced in North America, 85% within the U.S. itself, with the bulk of the remainder from Canada

Electric systems/equipment are more subject to outages due to weather conditions and high system demands, often generated by foreign oil

The majority of the oil supply is sourced from overseas production, requires storage tank and prepayment, and often originates in unstable countries

The majority of propane supply is from overseas production and requires storage tanks and prepayment

Requires constant stoking to maintain the availability of heat; there are restrictions on wood supplies; and availability jeopardizes carbon capturing forests

Low NOx, SOx, and CO2 emissions, virtually no particulates, and no solid waste or mercury generation

Fossil fuel generating plants produce more NOx, SOx, CO2 , particulates, solid waste, and mercury than the direct use of natural gas

Oil equipment produces more CO2, NOx, SOx, particulates and mercury than natural gas

Propane equipment produces more CO2 than natural gas

Wood equipment produces more CO2, particulates and solid waste than natural gas, and can produce significant smoke and odors

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Comparing the benefits of natural gasEnergy Source Emissions Efficiency and Economics Energy Reliability/Security

Natural Gas

Electricity

Oil

Propane

Wood

Very efficient, delivering approximately 90% of source energy to households, and typically less expensive than competing fuels

Fossil fuel plants are very inefficient, delivering less than 30% of source energy to households, electricity is typically 2 to 4 times more expensive on an energy-equivalent basis

Fuel oil is more expensive on an energy- equivalent basis and requires higher expense to clean and maintain

Propane is more expensive on an energy equivalent basis, very regionalized and highly variable

Wood is very inefficient and requires hauling, storage, and ash disposal; prices are regionalized and highly variable

97% of U.S. natural gas supply is produced in North America, 85% within the U.S. itself, with the bulk of the remainder from Canada

Electric systems/equipment are more subject to outages due to weather conditions and high system demands, often generated by foreign oil

The majority of the oil supply is sourced from overseas production, requires storage tank and prepayment, and often originates in unstable countries

The majority of propane supply is from overseas production and requires storage tanks and prepayment

Requires constant stoking to maintain the availability of heat; there are restrictions on wood supplies; and availability jeopardizes carbon capturing forests

Low NOx, SOx, and CO2 emissions, virtually no particulates, and no solid waste or mercury generation

Fossil fuel generating plants produce more NOx, SOx, CO2 , particulates, solid waste, and mercury than the direct use of natural gas

Oil equipment produces more CO2, NOx, SOx, particulates and mercury than natural gas

Propane equipment produces more CO2 than natural gas

Wood equipment produces more CO2, particulates and solid waste than natural gas, and can produce significant smoke and odors

• Space Heating• Water Heating• Clothes Drying• Cooking• Fireplaces• Outdoor Equipment• On-site Power Generation• Advanced Heating and

Cooling Systems• Emergency Generators

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The most environmentally

friendly and economical way to benefit from

natural gas is to use it directly in

our homes and businesses.

The Direct Use of Natural Gas Maximizes Efficiency and Minimizes Environmental ImpactWhen comparing efficiency and environmental impact, it is important to consider the full fuel cycle of the energy source. Considering only the energy used at the point of use can dramatically understate the total energy consumed

and the associated emissions and pollutants, particularly with secondary energy sources such as electricity. Incorporating the true overall energy efficiency and emissions on a full fuel cycle basis reveals that the direct use of natural gas delivers significant benefits…less total energy consumed, lower energy costs and reduced emissions.

Space heating is the most common use of natural gas in our region due to the comfort, convenience, reliability, and lower operating costs. But these same savings and benefits are available for a wide variety of indoor and outdoor residential equipment and commercial and industrial applications, including:

• Space Heating and Air Conditioning

• Domestic Water Heating

• Process Water Heating

• Industrial Process Heating

• Commercial Food Service

• Process Cooling and Refrigeration

• Humidity Control• On-site Power

Generation• Compressed Air• Water and Waste-

water Pumping• Solids and Liquid

Waste Treatment• Transportation Fuel• Emergency

Generators

RESIDENTIAL NON-RESIDENTIAL

High-Efficiency natural gas uses—space heating, water heating, household/commercial appliances, and industrial process equipment—are integral parts of high performance building design. Installed within well insulated buildings with high performance windows and doors, integrated high efficiency lighting, heat recovery and control systems, natural gas equipment provides increased energy savings and exceptional comfort.

And for those wishing to take energy efficiency to the next level, the use of natural gas for on-site electric generation, cooling, commercial refriger-ation, and other non-traditional uses of natural gas, presents exciting new opportunities to signifi-cantly reduce the total use of our energy resources. The direct use of natural gas benefits both the environment and the bottom line, reducing our dependence on power obtained from less efficient and more polluting fossil-fueled electric generating plants and reducing the need to construct costly new generating plants.

Natural gas can warm our homes and businesses, provide hot water, cook our food, dry our clothes, generate clean power, and fuel our industries—all without destroying our environment. It does so economically, with proven and reliable technology and it is produced right here in North America…all of which makes natural gas the fuel of choice.

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Partnering with RenewablesNatural gas has significantly fewer emissions than oil, coal, and propane. Additionally, there is an abundant, domestic supply that is readily available for use.

This creates an unprecedented opportunity to use gas as a path to a new, greener energy economy that relies on efficiency and conservation, renewable energy, and low-carbon natural gas. A solar thermal-assisted, gas hot water heater is an example of combined technologies delivering increased efficiencies.

Natural Gas is a critical piece of the hybrid energy solution, providing a reliable clean fuel for central electrical generation or on-site applications. Natural gas is part of the sustainable mix that will meet America’s energy needs.

The Tom Ridge Environmental Center in Erie Pennsylvania earned LEED accreditation from the U.S. Green Building Council, thanks in part to the high-efficiency natural gas boiler system chosen for this state-of-the-art educational, research, and visitor center.

Green Buildings and Natural GasThe use of natural gas can advance green building. Also referred to as sustainable design, green building is a whole-building and systems approach to facility design, construction, and operation that employs techniques and strategies to minimize environmental impacts and reduce energy consumption of buildings while contributing to the health and productivity of the occupants. Therefore, the use of high efficiency natural gas technologies and equipment can help a building project achieve environ-mental certification.

Leadership in Energy and Environmental Design (LEED) is the nationally recog-nized rating system for green buildings in the U.S. developed by the United States Green Building Council (USGBC). The LEED system awards points in five categories—Sustainable Sites, Water Efficiency, Energy and Atmosphere, Materials and Resources, and Indoor Environmental Quality—and includes options to achieve additional points for innovation and regional credits.

The level of LEED certification is based on the number of points achieved. Certification levels are Certified, Silver, Gold, and Platinum. The LEED category with the most number of points available is Energy and Atmosphere.

Green Globes is another green building rating system administered by The Green Building Initiative. Green Globes utilizes an on-site assessment and rating tool assessing building performance on a 1,000-point scale in multiple categories: Site, Energy, Water, Resources, Indoor Environment, Emissions, and Project/Environmental Management.

Energy Star is a label introduced by the EPA in 1992 to identify and promote energy efficient products as well as residential and non-residential buildings. The Energy Star label is available for 13 types of commercial buildings, including retail stores, hotels, schools, supermarkets, and more. Energy Star buildings normally use 35% less energy and emit 35% less CO2 into the atmosphere than average buildings.

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Natural gas has many uses: residential, commercial, and industrial. It is among the CLEANEST energy sources and its many applications serve to decrease harmful pollution levels from all sectors.

The cleanest energy is the energy not consumed—SO PLEASE CONSERVE!

More Efficient

Domestic Supply

Summary of Natural Gas Benefits

Lower Cost per BTU

Reduce Demand on Electric Grid

Less CO2

Less SO2 and NOx

www.nationalfuelgas.com

For Additional Information on the Benefits and Uses of Natural Gas, See the Following Resources:

American Clean Skies Foundationwww.cleanskies.org

American Gas Associationwww.aga.org

American Gas Foundationwww.gasfoundation.org

American’s Natural Gas Alliancewww.newnaturalgas.org

Council for Responsible Energywww.comfortableresponsible.org

Energy Solutions Centerwww.energysolutionscenter.org

Natural Gas Supply Associationwww.naturalgas.org

Technical Review Provided By:

Global Environmental Specialistswww.ene.com

ecology and environment, inc.