Natural Gas:Friend or Foe to Energy Sustainability?

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About the Panel

Marc Gunther is a veteran journalist, speaker, writer and consultant whose focus is business and sustainability. Marc is a contributing editor at FORTUNE magazine, a senior writer at Greenbiz.com, a lead blogger at The Energy Collective. He's also a husband and father, a lover of the outdoors and a marathon runner. Marc is the author or co-author of four books, including Faith and Fortune: How Compassionate Capitalism is Transforming American Business. He's a graduate of Yale who lives in Bethesda, MD.

Geoffrey Styles is Managing Director of GSW Strategy Group, LLC, an energy and environmental strategy consulting firm. His industry experience includes 22 years at Texaco Inc., culminating in a senior position on Texaco’s leadership team for strategy development, focused on the global refining, marketing, transportation and alternative energy businesses, and global issues such as climate change. Previously he held senior positions in alliance management, planning, supply & distribution, and risk management.

David Hone is Climate Change Advisor for Shell since 2001, as well as a board member and Vice Chairman of the International Emissions Trading Association. He works closely with the World Business Council for Sustainable Development and has been a lead contributor to its recent energy and climate change publications. Previously, David has worked as a refinery engineer in Australia, an oil economics and supply specialist, and manager of the global trading and chartering of Shell's crude oil tanker fleet.

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Unconventional Gas – The New Conventional!

Tight Gas Shale Gas Coalbed Methane

• Occurs in ‘tight’ sandstone

• Low porosity = Little pore space between the rock grains

• Low permeability = gas does not move easily through the rock

• Natural gas in coal (organic material converted to methane)

• Permeability low

• Production via natural fractures (“cleats”) in coal

• Recovery rates low

• Natural gas trapped betweens between layers of shale

• Low porosity & ultra-low permeability (0.02-0.1 mD)

• Production via natural fractures

Abundant: Huge Global Resources

IEA estimates 250 years global supply at current production levels

North America

Eurasia

Middle East

Asia PacificAfrica

Europe

LatinAmerica

Conventional Gas Resources (tcm) Unconventional Gas Resources (tcm)

Source: IEA World Energy Outlook, WoodMackenzie, Shell Interpretation

United States Gas Production (EIA Data):U.S. Natural Gas Marketed Production (MMcf per month)

1200000

1300000

1400000

1500000

1600000

1700000

1800000

1900000

2000000

Jul-

72

Ap

r-75

Jan

-78

Oct

-80

Jul-

83

Mar

-86

Dec

-88

Sep

-91

Jun

-94

Mar

-97

Dec

-99

Sep

-02

May

-05

Feb

-08

No

v-10

Natural Gas and Climate Change: US Electricity

Coal (IGCC or Supercritical PC)1.8 lb/kWh

45.3%

Natural Gas (CCGT)0.8 lb/kWh

23.9%

Wind0.03 lb/kWh

2.1%

Gasoline (Chevrolet Volt)~1.7 lb/kWh

EV powerKeyCO2 emissions from advanced generationShare of August 2010 ytd generation

Local Impacts of Natural Gas

The same technology that has dramatically increased gas supplies has also elevated local environmental concerns. Why?1. Potential water impacts

• Quantity• Quality

2. Greatly expanded drilling footprint• Number of US gas wells up by over 40% since 2000• Drilling in unaccustomed places

Some of these concerns are reasonable, but many are based on a poor understanding of what happens underground in a shale gas well.

Shale Drilling and Hydraulic Fracturing

• Shale gas reservoirs are isolated from drinking water aquifers by thousands of feet of impermeable rock.

• The well is isolated from drinking water by casing cemented to rock beyond the aquifer depth.

• “Frackwater” produced from the well is either recycled or disposed of per state regulations.

• Accidents can happen, but they are not unique to fracking.

Illustration credit: API

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