essay on natural gas in english

The biggest advantages and disadvantages of natural gas

Natural gas is a non-renewable, odorless, colorless hydrocarbon. It is non-toxic but extremely flammable.

In 2017, natural gas accounted for 36% of the EU energy consumption, next to electricity, which accounted for 24%, renewables for 18%, and petroleum for 11% – according to Eurostat. In the U.S., it accounts for more than 25% of energy consumption. It is used as a source of energy for:

• Electricity
• Fuel for vehicles

These are facts. But is it okay that we rely on natural gas so much? In this article, we will find out.

What are the biggest advantages and disadvantages of natural gas, what are the pros and cons of fossil fuels, and what else should we know about natural gas?

Advantages and disadvantages of natural gas

If we want to examine the pros and cons of natural gas objectively, we should first clarify what “advantages” and “disadvantages” mean.

What is an advantage to one is a disadvantage to another. For example, natural gas is an extremely flammable gas. It is its most significant advantage because, without it, we could extract much less energy from it.

But extreme inflammation is a potential danger because if a gas leak occurs, and it reaches a certain concentration, there will be a risk of explosion.

Sadly, there is no heating season without tragedies linked to natural gas. So, its advantages and disadvantages depend largely on the way it is used.

Benefits of natural gas

What are the advantages of natural gas?

First of all, natural gas is a fossil fuel. That is why it is worth comparing it to other fossil fuels first.

Natural gas is less expensive than other fossil fuels.

If somebody asks what the 3 main advantages of natural gas are, the price will definitely be among them.

According to  Ourworldindata.org , natural gas is much less expensive than other fossil fuels, such as oil or coal.

Natural gas is the most environmentally friendly fossil fuel because it burns cleaner

Other fossil fuels have many more harmful combustion products than natural gas.

If we burn natural gas under perfect combustion circumstances, its light will be blue and there will be minimal to none harmful compounds.

Natural gas is  one of the best energy sources to store and transport . It can be transported via international pipelines, or with tankers (in LNG form). It is safer and easier to store than other fossil fuels

It is clear that natural gas is one of the best non-renewable sources of energy. But what about renewable energy?

Natural gas is extremely reliable

Electric power is great until a storm comes. It can be knocked out during the storm, and our electrical devices may malfunction after it.

A similar problem cannot occur with natural gas.

More efficient storage and transportation compared to renewable energy

Transportation over long distances is much more efficient than in the case of sustainable energy (less network loss).

It is one of the biggest disadvantages of renewable energy – we cannot store it effectively.

Natural gas disadvantages

What are the disadvantages of natural gas?

It is dangerous in case of irresponsible use

Natural gas must be handled very carefully because it is a combustible material which can explode, as mentioned in the introduction.

It is not worth saving on installation and inspection costs. A gas leak meter is a very important accessory if we want to be sure that natural gas works properly.

It pollutes the environment

Yes, natural gas does contribute to greenhouse gases, if it is burnt under inappropriate conditions – and it is inevitable.

It is more environmentally friendly than other fossil fuels because it burns cleaner, but natural gas still pollutes the environment.

Non-renewable energy source

It comes from decomposed plants and animals buried deep under the Earth’s surface – for millions of years. That is why we call it non-renewable. If it’s gone, we cannot produce more.

If we do not reduce consumption, we will run out of natural gas in 52 years — according to  Worldometers . 

Natural gas has a long processing process

Before commercial and residential use, there is a long and costly process. 

First, it is mixed with a liquid called crude oil. Then most by-products are extracted from it, such as:

The extracted by-products can be used elsewhere – and natural gas is almost in its final form, which can be used in everyday life.

However, this is preceded by another important last step, as natural gas is a colorless and odorless hydrocarbon and, although non-toxic, extremely flammable. To avoid accidents, it will be scented to make gas leaks easily recognizable.

After that, a new composition of natural gas is formed – this is how it reaches end-users. This process raises the complexity and the cost of natural gas production.

Relatively expensive storage

Even though natural gas is easier to store and transport than other fossil fuels and renewables, it has one big storage disadvantage. Its volume happens to be four times as big as petrol’s.

Because of this, natural gas storage is much more expensive since more storage space is needed.

Conclusion — pros and cons of natural gas 

Natural gas is the most important energy source in the world right now. It accounts for 36% of the EU energy consumption and for more than 25% of the U.S. energy consumption.

There are a lot of advantages of using natural gas, but like everything, it also has its drawbacks. What is an advantage to one is a disadvantage to another.

If we want a cheap, reliable energy source, natural gas will be perfect. But in the long term, if we want to use a green energy source that will never run out, there are better alternatives than natural gas.

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112 Natural Gas Essay Topic Ideas & Examples

Inside This Article

Natural gas is a valuable resource that plays a significant role in our daily lives. From heating our homes to powering our vehicles, natural gas is used in a variety of ways. If you are tasked with writing an essay on natural gas, it can be helpful to have some topic ideas to get you started. Here are 112 natural gas essay topic ideas and examples to inspire your writing:

• The benefits of natural gas as a clean energy source
• The environmental impact of natural gas extraction
• The role of natural gas in reducing greenhouse gas emissions
• The economic benefits of natural gas production
• The challenges of transporting natural gas
• The history of natural gas usage
• The future of natural gas as an energy source
• The impact of natural gas on global energy markets
• The potential for renewable natural gas production
• The advantages of natural gas over other fossil fuels
• The impact of natural gas fracking on local communities
• The health effects of natural gas production
• The role of natural gas in electricity generation
• The impact of natural gas on air quality
• The potential for natural gas to replace coal in power generation
• The impact of natural gas on water resources
• The benefits of natural gas as a backup power source
• The challenges of storing natural gas
• The impact of natural gas on wildlife
• The potential for natural gas to reduce dependence on foreign oil
• The impact of natural gas on climate change
• The benefits of natural gas vehicles
• The challenges of integrating natural gas into the transportation sector
• The impact of natural gas on energy prices
• The potential for natural gas to be used in hydrogen production
• The impact of natural gas on rural communities
• The benefits of natural gas as a heating fuel
• The challenges of natural gas flaring
• The impact of natural gas on soil quality
• The potential for natural gas to be used in agriculture
• The benefits of natural gas as a cooking fuel
• The challenges of natural gas pipeline construction
• The impact of natural gas on water quality
• The potential for natural gas to be used in manufacturing
• The benefits of natural gas as a chemical feedstock
• The challenges of natural gas storage
• The impact of natural gas on wildlife habitats
• The potential for natural gas to be used in space heating
• The benefits of natural gas as a power plant fuel
• The challenges of natural gas distribution
• The impact of natural gas on marine ecosystems
• The potential for natural gas to be used in transportation
• The benefits of natural gas as a fuel for buses
• The challenges of natural gas vehicle infrastructure
• The impact of natural gas on urban air quality
• The potential for natural gas to be used in aviation
• The benefits of natural gas as a fuel for ships
• The challenges of natural gas refueling stations
• The impact of natural gas on public health
• The potential for natural gas to be used in rail transportation
• The benefits of natural gas as a fuel for trains
• The challenges of natural gas train infrastructure
• The impact of natural gas on wildlife conservation
• The benefits of natural gas as a fertilizer
• The challenges of natural gas fertilizer production
• The impact of natural gas on soil health
• The potential for natural gas to be used in aquaculture
• The benefits of natural gas as a feedstock for aquaculture
• The challenges of natural gas aquaculture production
• The impact of natural gas on water quality in aquaculture
• The potential for natural gas to be used in forestry
• The benefits of natural gas as a fuel for forestry machinery
• The challenges of natural gas forestry equipment
• The impact of natural gas on forest ecosystems
• The potential for natural gas to be used in mining
• The benefits of natural gas as a fuel for mining operations
• The challenges of natural gas mining equipment
• The impact of natural gas on water quality in mining
• The potential for natural gas to be used in construction
• The benefits of natural gas as a fuel for construction machinery
• The challenges of natural gas construction equipment
• The impact of natural gas on air quality in construction
• The potential for natural gas to be used in waste management
• The benefits of natural gas as a fuel for waste management vehicles
• The challenges of natural gas waste management infrastructure
• The impact of natural gas on air quality in waste management
• The potential for natural gas to be used in recycling
• The benefits of natural gas as a fuel for recycling operations
• The challenges of natural gas recycling equipment
• The impact of natural gas on water quality in recycling
• The potential for natural gas to be used in renewable energy
• The benefits of natural gas as a backup fuel for renewable energy
• The challenges of natural gas renewable energy integration
• The impact of natural gas on air quality in renewable energy
• The potential for natural gas to be used in energy storage
• The benefits of natural gas as a fuel for energy storage
• The challenges of natural gas energy storage infrastructure
• The impact of natural gas on water quality in energy storage
• The potential for natural gas to be used in energy efficiency
• The benefits of natural gas as a fuel for energy-efficient appliances
• The challenges of natural gas energy efficiency programs
• The impact of natural gas on air quality in energy efficiency
• The potential for natural gas to be used in sustainable development
• The benefits of natural gas as a fuel for sustainable development projects
• The challenges of natural gas sustainable development initiatives
• The impact of natural gas on water quality in sustainable development
• The potential for natural gas to be used in climate change mitigation
• The benefits of natural gas as a fuel for climate change mitigation efforts
• The challenges of natural gas climate change mitigation strategies
• The impact of natural gas on air quality in climate change mitigation
• The potential for natural gas to be used in disaster response
• The benefits of natural gas as a fuel for disaster response vehicles
• The challenges of natural gas disaster response infrastructure
• The impact of natural gas on water quality in disaster response
• The potential for natural gas to be used in emergency preparedness
• The benefits of natural gas as a fuel for emergency preparedness efforts
• The challenges of natural gas emergency preparedness programs
• The impact of natural gas on air quality in emergency preparedness
• The potential for natural gas to be used in public safety
• The benefits of natural gas as a fuel for public safety vehicles
• The challenges of natural gas public safety infrastructure

These are just a few ideas to get you started on your natural gas essay. Whether you are exploring the environmental impact of natural gas extraction or the potential for renewable natural gas production, there are plenty of interesting topics to choose from. Happy writing!

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• Coal and Petroleum
• Natural Gas Uses Advantages

Natural Gas: Uses And Advantages

Natural Gas is mainly extracted from the petroleum deposits deep beneath the earth. In fact, it occurs just above the layer of crude oil, as gases are lighter than oil. It is formed through the same process through which petroleum is formed. High temperatures and pressure leads to the conversion of the remains of plants and animals buried under the earth into naturally occurring gas along with petroleum and coal.

What is Natural Gas used for?

• Natural Gas was used mainly for street and household lighting in the 19 th and 20 th  century.
• Now, it has a lot more uses in the homes and industrial applications.
• It is used to turn turbines for wind and solar energy generation.
• This fossil fuel is used for the production of ammonia which itself is used for making fertilizers.
• It is a domestic fuel as well. It fires stoves in our houses and also runs heaters, ovens, boilers, etc.
• Compressed Natural Gas or CNG, that is gas stored at high pressure, is also used in some households for heating and cooking purposes.
• CNG is also a cheap and environment friendly alternative for a transportation fuel used in low load vehicles requiring high fuel efficiency.
• Liquefied Natural Gas or LNG is used to power vehicles such as off-road trucks and trains.

What are the advantages of Natural Gas?

• Natural Gas is a cleaner fuel. It is less harmful to the environment than coal, petrol or diesel as it has less carbon dioxide emissions.
• It can be easily stored and transferred through pipelines.
• It is relatively more abundant than other fossil fuels i.e. coal and petroleum.
• It is also a safer fuel, as it is lighter than air and dissipates rather than exploding.
• It provides instant energy, which is why it is used in oven cooking, as it does not require pre-heating.

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Essay: Natural Gas

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In this vein, natural gas, with its share in primary energy increasing is projected to become the fastest growing fuel (1.6 percent (%) per annum), overtaking by 2035(BP Energy Outlook, 2017). This growth is driven major by the increase in the use of natural gas for power generation, and as industrial feedstock, as well as for liquefied natural gas (LNG) projects. These global trends in gas demand have also been witnessed in Africa and Nigeria alike, albeit, in less quantity compared to the total global demand.

Nigeria is acknowledged globally as one of the largest gas reserves holder, with estimated 182trillion cubic feet of gas, in addition to a potential 500 trillion cubic feet yet undiscovered. This level of reserves places the country in the 9th position in the league of gas resource holders. According to NNPC(2015), Nigerian total gas reserves consists of 48% associated gas (AG) and 52% of non-associated gas.

Nigeria’s gas production has been increasing over the years, owing to demands from the Nigerian liquefied natural gas project (NLNG), the west African gas pipeline project(WAGP) as well as for power generation. Although, a large quantity of the gas produced is re-injected into the well for reservoir pressure and some others flared (figure 1).

Figure 1: Nigeria Gas Production and Consumption (2006-2015).

Although, gas flaring in Nigeria had continued unabated, owing to weak penalties placed on flare defaulters, as well as inadequacy of infrastructure for utilization of gas. This has constituted a major economic waste and environmental damage over the years; although, the quantity of gas flared have reduced drastically due to development of infrastructures (EIA 2012) and projects for domestic gas utilization. Therefore, with current interest in gas, it is expected that natural gas demand in Nigeria to meet her domestic and export obligation will rise. By how much will gas demand rise, given the anticipated projects that will come on stream is yet to be projected. This study is intended to fill this gap.

1.2 Statement of Research Problem

There has been an increase in demand for gas especially for export (NLNG and the WAGP), and by the power sector. Recently, there has been a renewed interest by the federal government to diversify the economy through gas based industrialization. These industries, especially the petrochemicals and allied sector will require gas which will serve as a major feedstock (e.g. for fertilizer production industries) and for power generation. These will put pressure on the supply side of natural gas. Previously, studies on gas demand have been directed towards the power sector of domestic sector only.

Importantly to, there has been an increasing interest in agriculture, implying that the need for fertilizer will also increase. With government interest in developing Nigerian economy on the back of the gas sector, as well as the increasing population growth, it is reasonable to assert that demand for industrial goods and products will increase. This implies that there will be increasing need for gas which is a major feedstock for these industries. In spite of this expectation, little attention has been given to this critical sector of our national economy.

It is thus an imperative to project into the future, what the gas consumption for the industrial sector will be. Such outlook will aid in decision making for improved gas production in Nigeria. This study is set to bridge this knowledge and research gap.

1.3 Relevance of the Study

Natural gas is one of the major indigenous sources of energy in Nigeria and accounts for less than 30% of all primary energy used in the country. Per capita and total energy use in Nigeria is still very small, and it is important to understand how energy, and natural gas demand in particular, will evolve in the future. There has been an increase in the production and consumption of natural gas in Nigeria. This growth is mainly driven by the power and industrial sectors of the economy. Additionally, natural gas is a relatively cleaner source of fuel and thus burns more efficiently, compared with coal and oil.

Gas demand forecasts are used in decision making regarding how to achieve supply sustenance. It is also important for advancing alternative supply strategies geared towards mitigation of risk associated with disruption of supply. Importantly too, gas demand estimates are a good source of information for investors who may wish to engage in gas infrastructure projects in the country. Consequently, when this study is concluded, the result will not only be relevant to the government of Nigeria for decision making purposes, it will also furnish investors with requisite information for making informed investment decision.

1.4 Aim and Objective of the Study

Generally, gas demand forecasting is used for making decisions regarding sustenance of supply strategy. Consequently, the aim of this study is to forecast future gas demand in Nigeria as a result of industrial development.

The objective includes:

To forecast industrial gas demand in Nigeria

Assess the accuracy of forecasting model using MAPE, RMSE and the coefficient of estimation (R2).

CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction

In this chapter, we review both theoretical and empirical literatures on gas demand modeling and forecasting from a global, regional and country level perspective. We also discuss some stylized facts about the gas sector in Nigeria and the various demand sectors. We begin from the theoretical literature.

2.1 THEORETICAL REVIEW OF LITERATURE

2.1.1 Gas Based Industrialization

The Nigerian government have envisaged development of its economy using natural gas, in what has been termed, ‘gas based industrialization’. Some major projects and infrastructures were earmarked for increasing local gas utilization. presently, the Nigerian liquefied Natural Gas(NLNG) as well as the West African Gas Project(WAGP) are the major export projects for gas in Nigeria. These projects are expected to push up the demand for natural gas in Nigeria. With recent policy development for gas sector development (the National Gas Policy, 2016), the demand for gas in Nigeria will surge rapidly in the near future. Hence, it is expedient to estimate future domestic gas demand, so as to furnish the government and the private sector with relevant information needed for making informed decisions that will guarantee sustainability in supply

2.1.2 Fertilizer Sector

At the moment, Nigeria relies heavily on importation of fe rtilizer to meet its need. However, with Private companies, such as Notore chemical Ltd, taken over the National Fertilizer Company of Nigeria (NAFCON), and its gas sale agreement with the Nigerian gas company, the need for gas from this sector is expected to increase.

The replacement of fertilizer imports by domestic production obviously will provide an opportunity for foreign exchange savings for the country, which will grow in volume and importance to the agricultural/food sector in the future. The possibility of an expansion of this facility and the establishment of other such gas-fired fertilizer plants have been enhanced by the Nigerian government statements that it intends to remove fertilizer subsidies and deregulate procurement.

It is my opinion that a less visible but tangible savings in the food sector itself will result with increased fertilizer utilization, in addition to the earlier mentioned direct savings through import substitution. Presently, about US $ 1 billion is spent annually for import of food and live animals, thus any significant lessening of this figure will be noticeable.

2.1.3 Aluminum Sector

The Aluminum Smelter Company of Nigeria (ALSCON) located at Ikot Abasi, Akwa-Ibom State, is the only aluminum smeltering plant in Nigeria. The plant was initially commissioned in 1996 but ceased operations in 1999 due to financial problems. The plant was configured to consume up to 130Mmcf/d of natural gas. Nevertheless, the plant has experienced challenges with production due to issues relating to inadequate natural gas supplies. For instance, the 193,000-metric tons a year smelter was only able to produce 15,000 metric tons of aluminum in 2011 (which is less than 10% of the total installed capacity) due to lack of gas.

2.1.4 Steel Sector

For Nigeria to join the league of industrialized nations there is the need to have a sound industrial base. This would provide the fulcrum on which the industrial development will hinge. This industrial base is nothing more than a well-developed iron and steel industry, which will be producing such critical industrial raw materials as pipelines, cast iron, rods and bars, rails and wires e.t.c.

Planning for the Nigerian steel industry started at the same time gas large quantity of gas was found in the country in (1958). This was heralded by contractual engagement between the Federal government of Nigeria and a German-Austrian company for construction of the steel plant in Aladja, Warri.

The direct need from the coordinated expansion of the gas business thus necessitated the complete capacity of the current plants as well as many new plants. In fact, the steel demand requirement will enable the complete refurbishment of the current plants whilst still operating, given that the products or output from this company will be of international standard and at a comparative commercial price. However, these plants were to be connected to the gas system, as the project is only where there is available and adequate supply of gas. There are a couple of countries whose gas sector kick-tarted their steel industries, some of these countries include, Venezuela, Algeria and Mexico.

2.1.5 Gas as Feedstock for Petrochemical Industry

Natural gas is a major feedstock for the chemical industries. Liquids from natural gas, especially the alkanes (Methane through to Butane) constitutes a major input for the industries. When processed and transformed, these could yield final or intermediate industrial products (American Chemistry Council, 2011).

According to Prindle, (2010), chemical industries or companies are major users of natural gas as a feedstock, and thus consume large volumes for their processes. In USA for example, most of the chemical companies utilize gas as their major feedstock (American Chemistry Council, 2011). Because of the lower price of gas relative to petroleum products, chemical industries in the united states have benefited from huge competitive advantage in international markets for intermediate and final products (Denning, 2011).

Additionally, because natural gas is credited for low emissions implications, it’s use for power generation and as a feedstock for industrial processes vary.

2.1.7 The Petrochemical Industry in Nigeria

The petrochemical market is the foundation of many chemicals industry, as it provides the building blocks for most chemical products. For instance, Olefins. (ethylene, propylene, butadiene) and aromatics (benzene, toluene, xylene) are used in end-user markets such as paints, plastics, explosives and fertilizers. In a recent survey and analysis on the importance of refinery capacity to petrochemical markets in Nigeria and South Africa by Frost & Sullivan (www.chemicals.frost.com), strategic analysis of the South African and Nigerian petrochemicals markets, found that the Nigerian petrochemicals markets (excluding export of crude oil) was worth $14.03 billion in 2008 and forecasts it to reach $29.7 billion by 2015. South Africa’s petrochemicals market was worth $18.37 billion in 2008 and Frost & Sullivan forecasts it to increase to $24.5 billion by 2015.

The demand for petrochemicals products is highly driven by activities in the end-user segments, which include well developed manufacturing sector that provides a ready market for end-products of the petrochemicals industry. South Africa’s petrochemicals market is more developed than other sub-saharan markets, with the capacities of the local refineries exceeding domestic demand. South Africa refineries operate at optimum capacity and this enables the country to export to other countries in the region. The South African market is unique because of the production of petrochemicals from coal and gas feedstock using coal-to-liquid (CTL) and gas-to-liquid (GTL) technologies.

On the other hand, Nigeria depends on imports of petrochemical products, despite the presence of large crude reserves and four refineries. Obviously, the low refinery capacity utilization negatively affects the yield of petrochemical products, and hence the need for import. In south Africa, coal to liquid (CTL) technology is used to produce petrochemicals from coal, and the gas produced is used as feed stock. The choice of this alternatives arises from low capacity utilization of their refineries, and hence low production of petrochemicals to meet the high demand of the products. This makes the south African market a unique one.

A restructuring of the operation of Nigerian refineries, with greater private sector participation, is likely to increase the capacity utilization of the refineries. Once this is instituted, the cost structure of the Nigerian petrochemicals market is set to improve crude is the main feedstock for the production of Olefins and aromatics in Nigeria and South Africa. Although Nigeria has an abundance of crude oil deposits, the cost of production of petrochemicals is high. This is due to issues such as disruptions in supply of crude to the refineries due to militants’ activity, general corruption in the country and inefficiency in the way refineries operate. Steps by the Nigerian Government to increase the benefits derived by communities in the oil regions are expected to bring stability and minimize disruptions. Consistent with the declining price of gas, and its increased used, regional consumptions of gas as feedstock have also increased (figure 2).

Figure 2: Regional Demand for Natural Gas as Feedstock for Industries

Source: Hossein (2017) – 13th Iran Petrochemical Forum Teheran, April 22-23rd 2017

Observe from the figure that Asia Pacific is the largest consumer of natural gas as feedstock: 27% (52 Bcm) in 2015 & a projected 30% (74 Bcm) by 2040. This is followed by the Americas, the second largest consumer of natural gas as feedstock: 23% (45 Bcm) in 2015 & 26% (64 Bcm) by 2040 respectively. This is pa rticularly important against the background that t hese economies are large consumers of petrochemical products.

Africa and Europe are however on the lower side in terms of gas demand for petrochemical production. It is however interesting to observe that there is a projected increase in the demand for gas for petrochemicals in as with the America, Asia-Pacific, CI and the Middle East. This trend again justifies the need to estimate the potential future demand of gas by the industrial sector, so as to make well informed decisions.

2.1.8 Future of Natural Gas in Nigeria

There is no doubt that the evolution of unconventional gas (shale gas, coal bed methane, tight gas) in the U.S., Europe and China has had some implications for the Nigerian gas sector whose major markets have traditionally been the US and Europe. For instance, in 2007, Nigeria exported 97 TCF of gas to the U.S. representing about 12% of the total imports by US that year, while in 2011, Nigeria exported to the U.S. just 2.3 bcf of gas (Oyekunle, 2013) and in 2012 Nigeria exported no gas to the U.S.

This loss of an export market, as well a forecasted further decline in Europe has prompted the Nigerian government to encourage investments that will improve local consumption and utilization of natural gas. Though LNG projects have been delayed due to the delays in agreeing the Petroleum Industry Bill and the unconventional gas evolution, several gas development projects are either on-going or proposed such as: IPP’s, NIPP’s, CNG, GTL, GTM, and GTF. Such developments mean that the natural gas industry in Nigeria is going to undergo significant change, diversification and expansion during the next few years.

The pace of this will be influenced by politics and international gas market developments that are largely beyond the control of the major foreign investors in the Nigerian natural gas sector. With government renewed interest in the gas sector, as enshrined in the recently approved national gas policy, as well as the ‘Seven Big Wins’ initiative, and the already established domestic gas obligation and the Nigerian gas master plan, it is expected that the future holds great prospects for increased domestic and industrial consumption in Nigeria.

2.9 Domestic Gas Supply Obligation Policy

Energy consumption is essential for the growth of an. Gas has remained one of the major sources of world Energy accounting for about 20% of the world energy needs. The International Energy Agency (IEA) projected in May 2012 that global demand for natural gas could rise more than 50% by 2035, from 2010 level (Wood, Nwaoha, and Towler, 2012)

Nigeria is blessed with abundant energy resources like Solar, Coal, Tar sand, Natural Gas, Oil, hydroelectricity just to mention but a few. The commercial energy sector is, however dominated by Oil and Gas, both of which jointly account for about 71% of commercial domestic energy resources (Iwayemi and Adenikinju, 2001) Natural Gas’s abundance and its clean burning quality as opposed to other fossil fuels make it the favourite as fuel for electricity generation plant (Gas to Power) and industrial use. The Nigeria power industry is probably one of the most inefficient in meeting the dual needs of generating power supply and boosting investments because of insufficient Gas supply for power.

Interestingly, Nigeria is a gas resource country with huge gas reserves. Nigeria’s natural gas proven reserve is estimated at about 188 trillion cubic feet (Tcf) as at January 1st 2015; broken into 90Tcf associated gas and 98Tcf of non-associated gas which makes Nigeria the world’s 9th largest gas reserves holder (Okorie, 2010),

The development of gas sector in Nigeria has been constrained majorly by the absence of appropriate pricing, contractual agreements, integrated and robust gas pipeline infrastructure system, fiscal terms, legal and regulatory structures/institution and financing.

2.10 The major Domestic Gas supply sources are in the Niger Delta area of Nigeria.

The major existing and planned domestic gas supply sources are Utorogu, Oredo, Oben, Obiafu/Obrikom, Okoloma, Obigbo, Alakiri, Uquo, Idu,AssaNorth,Erha, Okan,Odidi, Ogbainbiri, and Oso. It is pertinent to note that Nigeria has about 27 existing gas plant, namely, the Oben gas plant which has a supply capacity of about 240mmscfd, the Uquo gas plant supplycapacity200mmscfd, the Chevron-Escravos gas plant supply capacity of about 430mmscfd and Utorogu NAG 1 gas plant with a supply capacity of 360mmscfd, etc. Below is the existing domestic gas supply capacity by plant across the western and eastern part of the Niger-Delta;

2.11 What is Domestic Supply Obligation?

In simple terms, domestic supply obligation is a gas supply provision concerned with the dedication of a stipulated gas reserve and production for the purposes of supply to the Domestic market. The concept of a Domestic Supply Obligation demonstrates the desire of the Nigerian state to cater for the needs of the home front by mandating an obligation on gas producers (IOCs) to provide certain needed supplies domestically.

The Obligation create an imposition on certain products producer to provide their product in definite or calculated quantities for the consumption of person and industries within the state(Domestic Gas supply and Pricing Regulation,(2008),) In essence, a domestic supply obligation tend to reflect government efforts towards ensuring the sustainability of domestic sectors that require a particular product for growth so that the constant and adequate supply of that product is guaranteed for on-going and efficient operation of the sectors. For instance, some hydrocarbon laws or International Petroleum Agreement (IPAs) in developing countries commonly stipulate that local production first meet the domestic demand for petroleum (Nwaoha & Wood,2014)

Within the context of Nigeria state, the DGSO is the obligation of person licensed to produce petroleum to dedicate a specific volume of natural gas towards the domestic gas requirement and to deliver the Gas to a (domestic) purchaser in accordance with a specified nomination procedure.( Domestic Gas supply and Pricing Regulation, 2008).The DGSO reflects the Nigerian government’s deliberate and conscious regulation of gas industry to ensure that domestic gas industries (especially the power and industrial sector) adequately benefit from the natural gas being produced in the country(Nwaoha & Wood,2014).

This is aimed at promoting a public-private sector partnership for the orderly and rapid commercialization of Nigeria’s Natural gas resources for power generation and diversification of the domestic economy.

2.12 Context for the Domestic Gas Supply Obligation (DSO) Policy

The gas sector has to be in a position to respond to many time critical challenges including:

Potential imminent explosive growth in demand from the power sector;

A limited market window to entrench its position as a dominant player in global fertilizer, petrochemical and related industries. There is a need to rapidly attract and secure investors in these sectors;

Urgent need to diversify the domestic gas market portfolio from the earlier scenario dominated by PHCN to one with a wider group of possible off-takes as a route towards market competition;

Urgent need to develop the necessary gas infrastructure.

These near term challenges required a minimum gas supply flow that was significantly higher than the 300 mmcfd market that existed at the time. However, achieving a rapid growth in supply to drive the market was unlikely to happen on its own with the current structure of the sector which was dominated by oil-centric IOCs with little appetite for domestic gas market de velopment. The DSO Policy was necessitated to jump-start supply to the domestic market.

2.13 The DSO Policy Objective

The primary objective of the policy is to jumpstart gas supply availability to a level that will:

Enable immediate response to the rapid growth in demand from NIPP and PHCN power plants;

Create a base load of supply that could enable diversification of the market and jumpstart industrialization,

Provide sufficient supply to underpin the commercial development of the extensive pipeline infrastructure required to support the market.

Based on the above, it was established that at a minimum, the domestic gas market be underpinned by about 5 bcfd of gas – enough to support at least 15GW of power, achieve about 4-5% global market share in fertilizer/petrochemical/methanol industries, and enable reasonable commerciality for investment in over 2000 km of gas pipeline infrastructure.

The thrust of the DSO is to create a base load of supply by intervention. However, beyond this threshold, it is expected that the basis for a fully competitive market would have been established and market forces will thereafter drive the growth of supply and demand in the market. In essence, the DSO Policy is a transitional policy intervention aimed in the short term at driving supply availability to a level that could sustainably support a fully competitive gas market.

The figures below show the summaries of Nigeria Domestic Gas Supply Obligation and performance from 2008 to 2015.

Figure 3: Domestic Gas Supply Obligation

Source: Department of Petroleum Resources (DPR)

It is obvious from the figure, that performance have lagged the stipulated volume. However, it is interesting that there is an improvement in performance from 2014, with expectation that supply to meet the stipulated obligations will increase in the near future.

2.14 The Key Elements of the DSO Policy

The DSO Policy stipulates that during the transition and subject to the Federal Ministry of Petroleum Resources (HMPR) subsequent assessment of the state of the nation’s requirement:

All oil and gas suppliers in the country will be mandated to set aside a certain amount of pre-allocated volume of gas for the domestic gas market;

The mandatory obligation (called DSO) will be for a fixed volume of gas contributing to an overall base load determined by the HMPR for the purpose of transitioning the market only;

It is intended that beyond this initial allocation, supply growth will be on a ‘willing buyer, willing seller’ basis, but the HMPR will retain the right to impose additional obligations, if considered necessary to do so in the interest of the nation;

The DSO will be deployed for specific strategic purposes towards transitioning the market rapidly. This includes, but is not limited to, achieving a diversified off-take across sectors (power, industries, etc.), and stimulating the growth of backbone gas infrastructure across the country;

The DSO will be administered centrally in order to ensure that FGN’s strategic objectives for the transition are realized. The Gas Aggregator Company will be established to manage the DSO;

Supporting commercial policies will be developed to assure commercial viability of the supply;

Suppliers who meet their obligation will be able to supply excess gas above the DSO on a ‘willing buyer, willing seller’ basis;

The obligation will be set based on a target 5-year realization frame

The DSO legislation requires all associated and non-associated gas reserves holders to dedicate a specific volume of gas supply to the domestic market based upon their gas reserves, their total production and their level of flaring. Domestic supply obligations are broken down annually to a production obligation by year based on the reserve entitlements of each player. The sum of all obligations equals the planned domestic requirement for the stated period. Figure below summarizes the domestic obligations, as issued by the DPR to all IOCs in 2009.

Figure 4: Domestic Gas Obligation on Producers in Nigeria.

Figure 4 show the Nigeria Domestic Gas Obligation allocation to companies and their performance from 2008 to 2015. The approach government has taking to enact a policy that will ensure that the IOC used some portion of the allocated gas for domestic uses are commendable. Although, the majors Gas industry players are not too thrilled about this, but it is a price they have to pay if they want to remain in the Nigerian Gas market.

2.1.15 Challenges to increased Industrial Gas Utilization

2.1.15.1 Associated Gas

Notwithstanding the earlier drive for gas utilization in Nigeria, the utilization of gas was low compared to the amount that was being produced in association with the production of crude oil. This is because while, oil is a stable and relatively inert liquid, which is readily capable of production, storage, transportation and sale. Gas, on the other hand, in terms of transportation and storage is a far less accommodating commodity18. As a result, downstream projects for gas utilization are expensive, need high front-end capital investment, and also require immediate off-takers.

Coupled with the above challenges faced by natural gas, the most important reason why international oil companies were not interested in the utilization of gas was the high costs of the extraction, processing and separating of associated gas production. The costs involved in associated gas use have been estimated to be ten times higher than those for the non-associated variety (Davidson, Hurst and Mabro, 1998).

Non-associated gas is cheaper to use because the capital costs involved, include drilling and treatment without any extra outlay on compression and/or re-pressurization for transport (Khan, 1994). Furthermore, these costs are spread over a larger reserve base compared to those in associated gas production. There is also the perennial problem of using associated gas, which is that the reliability of supplies is heavily

2.1.15.2 Infrastructure Inadequacy

In terms of capacity and reach, the natural gas distribution pipeline network is extremely limited. As stated earlier, the gas reserves are concentrated in the South-South and South-Eastern part of Nigeria, however, the main demand centers are located in the south-west of the country. Connectivity between these geographical regions is limited, also there is virtually no pipeline infrastructure serving the northern parts of the country.

This situation has adversely affected the development of the domestic gas market, as several companies that are willing to use gas in areas outside these areas of operation cannot be connected. Even within areas with pipeline infrastructure, the Nigerian Gas Company Limited (NGC), the government company with monopoly over transmission and distribution of natural gas in Nigeria, has been unable to deliver gas to several companies that want to be connected, due majorly to the paucity of funds to meet these demands(NGC 2012).

This would not have been the case, if the federal government had drawn up a well thought-out policy for gas infrastructure development from the very beginning. This is as a result of the fact that, financing was clearly not an issue for Nigeria until the early 1980s (before the drop in oil receipts). Nigeria’s oil revenues increased between 1969 and 1974 by twenty-eight times, from about $480 million to $12.1 billion per year27.

During the 1970s and well into the 1980s project expenditu re remained well below budgeted targets. However, while money was available in this period, th e government did not simply allocate it to gas development. For example, during the second five-year NNPC’s development plan (1970-74) nothing was allocated to gas investment. In the third five-year plan (1975-80), out of the total 1.757 billion Naira that was allocated to NNPC, only 10 million Naira was set aside for gas infrastructure development (Davidson, 1998). Regrettably, by 1977 nothing at all had been spent out of this budgeted sum.

Likewise, in the fourth five-year plan, of the meager amount that was allocated for gas development only a relatively small amount was actually spent. The desire to develop the domestic gas market only came after the oil boom period, and by then the federal government had to resort to borrowing to fund domestic gas project. A case in point was the construction of the 240-mile Warri- Lagos gas pipeline, in 1988 NNPC had to obtain third party financing from export credit agencies and multilateral banks (the World Bank and the European Investment Bank) to construct this pipeline.

2.1.15.3 Gas Pricing

For there to be meaningful development of the domestic gas market, the price must be right for both the consumer and the producer to allow for the huge investment that is required to develop and maintain facilities. The government controls the price of natural gas for the domestic market, and the price is usually not viable for development of domestic gas consumption (Akpan, 1997). The price does not cover the costs of maintenance of facilities, let alone provide money for new projects or even profit.

Gas pricing for consumers in Nigeria was set in a discretionary and non-transparent manner. State corporations, which constitute the bulk consumers of gas in Nigeria, receive gas at very low prices in comparison with private consumers of gas. For example, at a point Power Holding Company of Nigeria PLC (PHCN), the government owned utility company that accounts for over 85% of domestic gas demand, was paying 3 Naira/Mscf, whilst, NGC the seller was paying 3.143 Naira/Mscf to the gas producers and this does not include the cost of transmission, maintenance and other operating costs (Adefulu, 2000). Notwithstanding the low price, PHCN was unable to make payment for gas received as and at when due (NGC, 2008).

The irregular and short payment to NGC, who as a result were unable to meet their financial obligations to the gas producers, made both parties unhappy with the price setting mechanism, as it was not market-based. The unsustainable price setting mechanism and the inability of the largest consumer of natural gas to pay for gas off-taken, therefore did not provided the right signals for investors to develop the required gas infrastructure.

2.2 Review of Empirical Literature

Several published particles on forecasting of consumption, demand and production of natural gas deployed varying tools and techniques for forecasting. Among the first models established for forecasting natural gas consumption was the Hubbert curve model. In this study, Hubbert (1949), and Hubbert, (1956) investigated annual statistics of fossil fuels production, and after plotting production over time, noticed that the curves had similar characteristics and strong relationship among them: each curve starts slowly and then rises more steeply until finally it reaches an inflection point after which it becomes concave downward. The model was based on two basic considerations:

1. For any production curve of finite resource of fixed amount, two points on the curve are known on the outset, namely that t = 0 and again on t =1. The production rate will be zero at the beginning, whereas at the end of exploitation, when the resource is exhausted, with one or several maxima in between.

2. The second consideration derives from the theorem of the integral calculus, that: “if there is production curve plotted against time on a scale, such that P = dQ/dt, where dQ is quantity of resource produced in time dt, then the total area under the curve, production-versus-time graph, will represent ultimate production of an exhaustible source.

Taken cognizance of these considerations, he estimated ultimate reserves

of fossil fuels and then forecasted the rates of production into the future. A modified version of that model was used by Al-Jarri and Startzman (1997), Al-Fattah and Startzman (2000), Siemek (2003), Cavallo (2004). In addition to the Hubert Model, statistical models for natural gas consumption have been developed and used in the 1960s and since then, various statistical models have been adopted for forecasting in past and current researches (Bozˇidar, 2012).

Among the first reported, Balestra and Nerlove (1996) used statistical tools and time series data in forecasting demand for natural gas. In order to estimate the demand for electricity and natural gas in northeastern United States, Beierlein (1981) used seemingly unrelated regression estimation. Piggott (1991) used Box–Jenkins modeling in time series analysis. Herbert et al. (1987) used regression analysis, whereas regression analysis, residual analysis and linear regression equation were used in Herbert (1987). Also, Liu and Lin (1991) estimated the residential consumption of natural gas in Taiwan using linear transfer function method.

Brown and Matin (1995) employed feed-forward artificial neural network models to forecast daily gas consumption in Wisconsin, United State. Similarly, Khotanzad (2000) used the artificial neural network (ANN) forecasters in the prediction of daily natural gas consumption needed by gas utilities. Durmayaz (2000) estimated the residential heating energy requirement and fuel consumption in Istanbul based on degree-hours method. Gumrah, (2001) also analyzed the factors theta influence gas consumption in Ankara, and their relationships. They suggested a model based on degree-day concept including annual number of customers, average degree days, and the usage per customer. Consequently, Sarak and Satman (2003) forecasted the residential heating natural gas consumption in Turkey by using degree-day method. Although, there had been deficiencies in the methods above. In this regard, Aras and Aras (2003) have described an approach to obtain appropriate models for forecasting residential monthly natural gas consumption in terms of time series analyses and degree-day method. Viet and Mandziuk (2003) analyzed and tested the several approaches to prediction of natural gas consumption with neural and fuzzy neural systems for natural gas load in two different regions of Poland. In another study, Siemek, (2003) implemented the Hubbert model based upon Starzman modification to describe the possible scenario of the development of the Poland gas sector; while Liu (2004) used the support vector regression (SVM) technique for natural gas load forecasting of Xi’an city, and they compared their result with a 7-lead day forecasting using neural-network-based model.

Although Brown et al. (2005) presented mathematical models for gas forecasting in their study, they fell short of accounting for gas consumption in the various sectors that utilize gas as feedstock. Hence, the Gil and Deferrari (2004) generalized model which predicts mainly the residential and commercial natural gas consumption in urban areas of Argentina, for the short and intermediate ranges of time was preferred. In furtherance, Gutiérrez et al. (2005) used Gompertz-type innovation diffusion process as a stochastic growth model of natural gas consumption in Spain and compared stochastic logistic innovation modeling and stochastic lognormal growth modeling of a non-innovation diffusion process; whereas in 2006, Al-Fattah presented a methodology for developing forecasting models for predicting U.S. natural gas production, proved reserves, and annual depletion to year 2025 using time series modeling approach(Al-Fattah, 2006). Ivezi (2006) showed the results of investigation of an artificial neural network (AN N) model for short term natural gas consumption forecasting. This methodology uses multilayer artificial neural networks to incorporate historical weather and consumption data.

In their study, Potocnik (2007) proposed a strategy for estimating and forecasting risk of natural gas consumption in Slovenia. This strategy combined energy demand forecasting model, and economic incentive model and a risk model. However, the report by Sanchez-Ubeda and Berzosa (2007) was a model based on decomposition approach to capture demand patterns in a very large number of different historical profiles.

In other reports, Ediger and Akar (2007) used ARIMA and SARIMA methods to estimate the future primary energy demand for Turkey from 2005 to 2020; while Kizilaslan and Karlık (2009) used neural networks algorithms to find the best solution for forecasting of monthly natural gas consumption. Erdogdu (2010) also deployed ARIMA model in forecasting natural gas consumption in turkey.

Bhattacharya and Timilsina (2009), Jebaraj and Iniyan (2006) and Urban et al (2007) recently reviewed the existing energy demand models for application in developing countries. Bhattacharyya and Timilsina (2009) identified four simple approaches, including growth rate, elasticity based, specific consumption and energy intensity for forecasting energy demand in developing countries.

The advantages of these methods are less data and skills requirements, although the methods can be widely off-the-mark in practice. Among the relatively sophisticated models used for energy demand, are trend models, econometric models, engineering economy models, hybrid models. Also, Wadud (2011) posited that there are other models for forecasting natural gas demand. They include, but not limited to dynamics models, scenario approaches, input-output models and artificial neural network models.

In their study, Junchen, Xiucheng, Jianxin, and Mikael, (2011). Used the system dynamics model to create a possible outlook of gas consumption in china. The report showed that the gas consumption in China will continue to increase fast to 89.5 billion cubic meters in 2010; 198.2 billion cubic meters in 2020, before finally reach 340.7 billion cubic meters in 2030. They used scenario analysis to assess the accuracy of their result. However, this method is data intensive, which is a major challenge for gas forecasting for developing nations like Nigeria.

Faheemullah, (2016) developed the logistic and logistic-population model based approach to forecast the medium- (2020) to long- (2035) term natural gas demand in China. The adopted modeling approach according to the authors is relatively simple, compared with other forecasting approaches. To improve their forecasting precision, the implemented the Levenberg–Marquardt Algorithm (LMA) to estimate the parameters of the logistic model.

The forecasts results showed that China’s natural gas demand will increase to 330–370 billion m3 in the medium-term and by 500–590 billion m3 in the long-term. Moreover, the forecasting results of this study were found close to studies conducted by the national and international institutions and scholars. This lends credence to the effectiveness of the model.

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Natural Gas - Free Essay Examples and Topic Ideas

Natural gas is a fossil fuel that is found deep beneath the earth’s surface. It is comprised primarily of methane and is often found alongside oil deposits. It is a clean-burning fuel that produces less pollution than other fossil fuels, making it a popular energy source for power generation and heating. It is transported through pipelines and can also be compressed for use in vehicles. Natural gas is a finite resource and must be extracted from the earth through drilling or hydraulic fracturing, which can have environmental impacts.

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Natural Gas and Its Role In the U.S. Energy Endgame

By Kevin Doran and Adam Reed • August 13, 2012

The United States has won the lottery on natural gas. According to the most recent estimates by the Energy Information Administration, the U.S. has some 2,214 trillion cubic feet cubic feet of technically recoverable natural gas — enough to satisfy all of our natural gas demands for the next century at current consumption levels. The extraction of shale gas, enabled by technological advances such as hydrofracturing and horizontal drilling, has led the way in creating this largely unforeseen cornucopia. Domestic natural gas is now a cheaper fuel for electricity generation than coal — long our go-to fuel for power around the clock — and emits roughly half the greenhouse gas emissions. It appears that our energy problems are over — or are they? A full-throttle shift to a gas-dominated electricity system, which now appears to be the ordained path forward in many parts of the country , will flash through our newfound abundance more quickly than we realize, and will not ultimately stave off catastrophic climate change, which by any reasonable measure of sanity is still the defining challenge of the 21st

The rose of abundant gas is not without thorns, including the risk of price increases.

The natural gas boom presents the prospect of imminent harm to the deployment of renewable energy.

We should ensure that renewables are used as a hedge against the risk of increased reliance on natural gas.

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Natural gas explained  

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What is natural gas?

Natural gas is a fossil fuel energy source. Natural gas contains many different compounds. The largest component of natural gas is methane, a compound with one carbon atom and four hydrogen atoms (CH 4 ). Natural gas also contains smaller amounts of natural gas liquids (NGLs, which are also hydrocarbon gas liquids ), and nonhydrocarbon gases, such as carbon dioxide and water vapor. We use natural gas as a fuel and to make materials and chemicals.

How did natural gas form?

Millions to hundreds of millions of years ago, the remains of plants and animals (such as diatoms) built up in thick layers on the earth’s surface and ocean floors, sometimes mixed with sand, silt, and calcium carbonate. Over time, these layers were buried under sand, silt, and rock. Pressure and heat changed some of this carbon and hydrogen-rich material into coal, some into oil (petroleum), and some into natural gas.

Where is natural gas found?

In some places, natural gas moved into large cracks and spaces between layers of overlying rock. The natural gas found in these types of formations is sometimes called conventional natural gas . In other places, natural gas occurs in the tiny pores (spaces) within some formations of shale, sandstone, and other types of sedimentary rock. This natural gas is referred to as shale gas or tight gas , and it is sometimes called unconventional natural gas . Natural gas also occurs with deposits of crude oil, and this natural gas is called associated natural gas . Natural gas deposits are found on land, and some are offshore and deep under the ocean floor. Natural gas found in coal deposits is called coalbed methane .

Source: Adapted from United States Geological Survey factsheet 0113-01 (public domain)

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Operators preparing a hole for the explosive charges used in seismic exploration

Source: Stock photography (copyrighted)

How do we find natural gas?

The search for natural gas begins with geologists who study the structure and processes of the earth. They locate the types of geologic formations that are likely to contain natural gas deposits.

Geologists often use seismic surveys on land and in the ocean to find the right places to drill natural gas and oil wells. Seismic surveys create and measure seismic waves in the earth to get information on the geology of rock formations. Seismic surveys on land may use a thumper truck , which has a vibrating pad that pounds the ground to create seismic waves in the underlying rock. Sometimes, small amounts of explosives are used. Seismic surveys conducted in the ocean use blasts of sound that create sonic waves to explore the geology beneath the ocean floor.

If the results of seismic surveys indicate that a site has potential for producing natural gas, an exploratory well is drilled and tested. The results of the test provide information on the quality and quantity of natural gas available in the resource.

What happens when natural gas is found?

If the results from a test well show that a geologic formation has enough natural gas to make a profit, one or more production (or development ) wells are drilled. Natural gas wells can be drilled vertically and horizontally into natural gas-bearing formations. In conventional natural gas deposits, the natural gas generally flows easily up through wells to the surface.

In the United States and in a few other countries, natural gas is produced from shale and other types of sedimentary rock formations by forcing water, chemicals, and sand down a well under high pressure. This process, called hydraulic fracturing or fracking (sometimes referred to as unconventional production ), breaks up the formation, releases the natural gas from the rock, and allows the natural gas to flow to and up wells to the surface. At the top of the well, natural gas is collected in gathering pipelines and sent to natural gas processing plants.

did you know

Because natural gas is colorless, odorless, and tasteless, natural gas companies add mercaptan to natural gas to give it a distinct and unpleasant odor, which helps people detect leaks in natural gas pipelines. Mercaptan is a harmless chemical that smells like rotten eggs.

Natural gas is processed for sale and consumption

Natural gas withdrawn from natural gas or crude oil wells is called wet natural gas because, along with methane, it usually contains NGLs—ethane, propane, butanes, and pentanes—and water vapor. Wellhead natural gas may also contain nonhydrocarbons such as sulfur, helium, nitrogen, hydrogen sulfide, and carbon dioxide, most of which must be removed from natural gas before it is sold to consumers.

From the wellhead, natural gas is sent to processing plants where water vapor and nonhydrocarbon compounds are removed and NGLs are separated from the wet gas and sold separately. Some ethane is often left in the processed natural gas. The separated NGLs are called natural gas plant liquids (NGPLs), and the processed natural gas is called dry , consumer-grade , or pipeline-quality natural gas. Some wellhead natural gas is sufficiently dry and satisfies pipeline transportation standards without processing. Chemicals called odorants are added to natural gas so that leaks in natural gas pipelines can be detected. Dry natural gas is sent through pipelines to underground storage fields or to distribution companies and then to consumers.

In places where natural gas pipelines are not available to take away the associated natural gas produced from oil wells, the natural gas may be reinjected into the oil-bearing formation, or it may be vented or burned (flared). Reinjecting unmarketable natural gas can help to maintain pressure in oil wells to improve oil production.

Coalbed methane can be extracted from coal deposits before or during coal mining, and it can be added to natural gas pipelines without any special treatment.

Most of the natural gas consumed in the United States is produced in the United States. Some natural gas is imported from Canada and Mexico in pipelines. A small amount of natural gas is also imported as liquefied natural gas .

Last updated: December 27, 2022

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Evaluation of US Natural Gas Industry Research Paper

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The use of natural gas in the United States has experienced dramatic growth since late 20 th century. In most of the period, natural gas which saw massive production was a by-product of crude oil production. Long-lived reserves and easy target have since been provided by the large reservoirs of dry natural gas production.

“On April 1992, the Federal Energy Regulatory Commission (FERC) issued an order requiring a comprehensive natural gas restructuring, which was meant to enhance a more competitive ground into the natural gas industry.

Subsequently, the order enhanced the unbundling of pipelines’ gas sales and transportation services, thus the natural gas producers and the shippers could engage in arms-length transactions.” More importantly, the order made it possible for natural gas buyers to do this with an equitable and fair access to pipeline transportation from the sellers (Dahl, 112).

The main focus of the order was to create a capacity reallocation program, known as “capacity release.” This was to enable the shippers who had the capacity right of firms to release large amount of capacity through the pipeline for sale.

In addition, there were requirements on the pipe release, which required posting of information necessary to provide the interested parties with an opportunity to bid on the release capacity. This created a bidding competition, which saw the bidders with the largest value to become the acquiring shipper.

In 1993, the FERC commenced evaluating pipeline’s conformity filings, also putting in place the ‘capacity release’ enactment. All pipelines were to be approved and their operations were to be as per the requirements of the Order. The FERC aimed at ensuring that there was a well functioning capacity release to the market and a more competitive ground for natural gas delivery by the natural gas industry.

While on the same time, enhancing the efficiency of cost distribution and mitigating rate increases to firm gas customers, which were achievable since the firm shippers of natural gas paid for the fixed costs of transportation (Lautzenhiser & MacDonald, 253).

Having analyzed the main focus concerning the industrial requirements according to the order, let us look at the industry at a glance. Natural gas which is almost composed of methane entirely is a useful fuel used for commercial purpose as well as residential purposes. Its production, transportation and consumption is measured in cubic feet, which is equivalent to an area measuring one foot in regard to all three dimensions.

“The energy of one cubic feet can be estimated to hold energy equivalent to around one million British thermal units (Btu), however this energy does fluctuate due to different chemical composition of a gas.” In the twenty-first century, the use of natural gas is increasingly been used to generate of electricity, with many production industries embracing use of natural gas in place of nuclear energy as it shows effectiveness in the speed of electric generation as well as it contributed to cleaner environment.

This enabled the natural gas production to take over other energies such as coal and other fossil fules, and its role was expected to be extended further by the Clean Air Act effect. The natural gas is also used more due to its efficiency in retaining and distributing the heat energy produced through electricity generation (Dooley, 453).

The origin of the natural gas industry is traceable back in 1859 in Titusville, Pennsylvania. During this time, the first pipeline transportation was established in United States when oil was struck 69 feet below the ground by Edward Drake, a former railroad conductor.

It was however used to light street lights as there was no easy way of transporting the gas into people homes. Later on, natural gas was established in domestic usage through water warming and cooking food by gas producers.

However, during this period, its usage remained constricted until the end of the Second World War when some metallurgy advancements, pipes making rolling and welding processes contributed to improvement of distribution channels. There was expansion in layout of pipelines and widened usage of natural gas in America industry (Hackworth, Koch & Rezaiyan, 193).

“The first Natural gas Regulation Act was passed on 1938 which was the first government regulation of the industry”. The Act’s aim was to protect the consumers from the emerging monopolies in the natural gas industry through price regulation of the natural gas (Lautzenhiser & MacDonald, 153).

In the 1970s and 1980s there were acute outages of the gas which contributed to the eventual change from price regulation thus heightening the demand for the natural gas supply and decreasing the prices. Gradually, innovation and technology improvement started to be realized in natural gas industry as a result of competition.

In 1990, the “Clean Air Act Amendment” boosted the natural gas demand as it argued that natural gas was the cleanest energy source and by late 1990s, the natural gas industry was leading the supplier of energy with more than a half of the nation’s energy and indications showing that the reliance on natural gas was increasing.

The consumption of natural gas as energy had risen up to 70 percent of energy needs by 1999. According to Lautzenhiser & MacDonald (363), “there were more than 1.3 million miles of natural gas transmission and distribution pipelines traversing the nation, delivering supplies to 60 million commercial and residential customers.”

In early 2000, there have been proposals on pipeline projects which were estimated to boost the capacity of gas delivery by 23.2 billion cubic feet per day. As a result, a significant number of coal burning power and nuclear plants were shut down while other was being converted to natural gas facilities.

“In the beginning of 2000’s, the natural gas industry suffered from the sluggish market impacts, incoherent market deregulations and from the upheavals in the general energy industry, which were attributed greatly to the 2000 energy crisis in California together with the collapse of energy giant, Enron. This led to downsizing operations, large scale sell-offs, and a drastic decrease in shareholder’s equity in several firms”.

According to Dahl (341), “although natural gas makes up just one-third of the entire energy industry, because most energy companies have diversified interests that span the market, the beginning of the twenty-first century saw the industry weather a difficult storm of customers and investor distrust.” This saw declining capability of production, despite the fact that the usage of natural gas was expected to increase.

As mentioned earlier, the state regulation and myriad of federal are the core determinant of the distribution and transportation of natural gas.

This has categorized the two practices by putting the “interstate pipeline under FERC jurisdiction” and local distribution companies under the domain of their state’s public utility commission. Although historically oligopolies have directed the distribution chain of the natural gas from the producers to the consumers, deregulation during 1980’s and 1990’s enhanced by the fragmentation and competitiveness in the industry.

Before the deregulation, the chain of the gas distribution involved transporters who relied on the gas producers for supply, and were required by the wholesale agreement to provide the gas to distributors. The distributors under retail chain then delivered the gas to the end users.

However, on the employment of the deregulation, the natural gas industry experienced an expansion and extension of the traditional roles. In addition, there were new entrants in the distribution chain; these were “consultants, brokers, marketing affiliates and independent marketers”.

“The natural gas industry has trade associations, which represent the numerous segments”, for instance the demands of local-distributing firms are represented by “American Gas Association”, “The Natural Gas Supply Association” represents the giant gas producers, and “The Interstate Natural Gas Association of America” which represents pipelines’ firms.

“Other related organizational representations include; small independent gas producers who are represented by Independent Petroleum Association of America, gas producers who are represented by Domestic Petroleum Council, and local distributors who are represented by the Natural Gas Council”. The deregulation has increased the accessibility and consistency of the supply of natural gas and has also enhanced increase the gas’ demand.

Focusing on the current industry conditions, the early years of 2000 have seen the industry experiencing serious setbacks. California for instance experienced a significant power shortage and outages in 2001. In 2002, there was an artificial shortage of the natural gas which was attributed to El Paso Corp intention of heightening the gas price in its greed intention of acquiring vast amounts of profits.

Following this scenario, the Enron Corp was faced by severe losses due to withdrawal of support by the Wall Street investors due corruption allegations, which lead to a drop by 90% in the shareholder’s wealth.

As a result, the natural gas industry was faced by tailspin of downsizing, lay-offs, and sell-offs. The industry therefore lost its credibility and went on a hard track of obtaining bankers and investors an attempt which remained wary of the volatile industry (Dahl, 290).

While the natural gas supply remained above average in 2002 with regard to previous five years, the natural gas storage supplies showed poor records in 2003 contributing to higher prices. However, as the U.S economy started recovering from the economic downturn as at the end of 2003, it was projected that that natural gas demand would rise by about 4% and would be consistent.

On the other hand, the production was not expected to increase regardless of the low level of storage. However the deregulation gradually revised the trend of both the production and distribution of the natural gas and the usage in commercial and domestic area. This was accompanied by increased demand of the natural gas.

However, the natural gas industry emphasizes more on market efficiency. “Under the pipeline maintenance investigation, the U.S Department of Transport reported that more than 800,000 leaks in service line and gas main is experienced every year”. This is significant representation of earning through gas loss beside a clear presentation of a potential disaster (Dahl, 284).

According to the Energy Information Administration, “it is projected that the use of natural gas as an electricity generating fuel would grow by 30% in year 2010 in comparison to 1992 levels. The increasing reliance of the natural gas has called for regulations that will ensure that the markets dealing with this product are exercising efficient operations. The recent years have seen the natural gas industry transforming from strict regulations to increasing competition”.

This is a change has been attributed to the whole distribution chain from the wellhead sources to the burner tip end user. However, the competition has affected the industry strategic choices which have become complicated due to the “expansion of pipeline services, natural gas derivative markets which have been successfully developed, and the North American market integration” (Dooley, 173).

According to Dooley (317), “any explanation of capacity release transactions must begin with an overview of the regulation that created the mechanism, thus the legislation creating the mechanism needs to be overviewed”. This will enable one to realize that natural gas pipelines, unlike others, were not designed as common carriers, however according to Order No. 636 and 636 the FERC has the mandate to change natural gas pipelines into common carriers.

The FERC attempted to change the pipelines transformation into common carrier in 1992 through revolutionizing the natural gas industry by authorization of pipelines unbundling their services to natural gas end users. In capacity release, the determination that the capacity will be utilized over a certain period of time enables determination of period of release, quantity to be released, whether or not the release is recallable among others.

The capacity release is transacted through pipeline’s ebb and though it is initiated by the seller, buyers also have the potential of triggering them (Dooley, 213).

There are important variables which are the key determinants of the prices for release capacity. According to Dahl (372), “the price of release capacity of natural gas industry is influenced by several factors which include; the distance over which the capacity release is effective, amount of capacity release, the number of releasing shippers on a given pipeline, the discounted interruptible rate of transportation on pipelines where the release is undertaken and the time length under which the release operation is effective, the capacity utilization degree on the pipeline, the specified minimum rate in posting of the release capacity, consideration whether deals contain recall right or not and whether the deal was prearranged or not among others.”

Natural gas industry has developed research and technology where development programs, research and designs were appropriated $246 million in 1999 at the Department of Energy. Adoption of intensive natural gas technology were also announced by Gas Research Institute which aimed at implementing natural gas cooling technology and natural gas micro turbines among other.

This saw “Enron Gas Pipeline Company being awarded in 1999 for surveying fugitive emission compressor stations which was a promising undertaking in helping the industry to secure co-funding and consortium for testing natural gas such like methane”.

The overall effort in improving the research and technology of the natural gas industry is aimed at enhancing expansion of natural gas market as well as improving natural gas conveyance. The evolution of natural gas fueled vehicle contributed to an increase of natural gas consumption by 26 percent despite the fact that it accounted for a minimal fraction of U.S natural gas consumption (Hackworth, Koch & Rezaiyan 413).

In addition, the industry have been able to introduce a residential natural gas dehumidifier which have since replaced air conditioning units which used electricity in private homes, industrial and commercial applications. Notably, United Technologies manufactured “natural gas fuel cells which could produce heat and electricity by combining oxygen and hydrogen”.

The low emission by these cells has made the technology look more suitable when used inside buildings. These natural gas fuel cells have been used in various industries such as food processing, hospitals and mass transit agency.

Works Cited

Dahl, Carol. “International Energy Markets.” Understanding Pricing, Policies and Profits . 2004.

Dooley, John. “Unintended consequences: energy R&D in a deregulated energy market.” 27 th August 1998.

Hackworth, John, Koch Robert, & Rezaiyan, John. “Economic Evaluation and Market Analysis for Natural Gas Utilization.” April 1995.

Lautzenhiser, Stephen & MacDonald Scott. “Evaluation of Capacity Release Transactions in the Natural Gas Industry.” June 1994

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IvyPanda. (2018, July 5). Evaluation of US Natural Gas Industry. https://ivypanda.com/essays/evaluation-of-us-natural-gas-industry/

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1. IvyPanda . "Evaluation of US Natural Gas Industry." July 5, 2018. https://ivypanda.com/essays/evaluation-of-us-natural-gas-industry/.

Bibliography

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Natural Gas Essay

The Gas And Natural Gas

Alberta Energy Regulator (2016) stated the irregular reservoirs of oil and natural gas are located underground in different formations. The unconventional reservoirs of oil and natural gas are considered hard to extract as these are in the rocks where it is difficult for oil and gas to travel to surface. In order to extract those reservoirs a technique called fracturing is developed over the years to make use of the hidden natural resources which were considered unfeasible to dig out as explained in

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Natural Gas

Natural Gas Natural gas is another means of energy source that provides heating and electricity to many individuals. It is a natural mixture of methane, carbon dioxide, nitrogen and hydrogen sulfide. Natural gas was first found back in 1626 when the French found the natives lighting gas seeping in and out of the ground around Lake Erie. When natural gas was first introduced into civilization as a means of energy source it was not efficient nor was it environmentally friendly. It was first in the

The Natural Gas Price Of Gas

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Lpg And Natural Gas : Gas

There are distinctive energy contents with LPG and Natural Gas, they are the same, but they are different in many ways (Hahn). LPG and Natural Gas are broadly accessible and used for thousands of applications (Hahn). There are two core distinctions in the way that natural gas (Methane) and LPG (Propane) are burnt (Hahn). CNG (Compressed Natural Gas) is a readily substitution of petrol that is made by compressing natural gas (Hahn). Consisting mostly of methane, CNG is odorless, colorless and tasteless

The Natural Gas Of Gas Essay

Natural gas liquefaction goes back to the 19th century when Michael Faraday, a British chemist and physicist, experimented with liquefying different types of gases including natural gas. Liquefied natural gas (LNG) is an odorless, colorless, non-toxic, non-corrosive and non-flammable form of methane. “The first liquefied natural gas plant was built in West Virginia in 1912” (Dominion). The LNG was first produced in Cleveland, Ohio, in 1939. In the 1950s and 1960s, the ocean-going trade in international

Gas Transportation Methods Of Natural Gas

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Is Fracking A Natural Gas?

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Natural Gas Fracking

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Fracking: Natural Gas

explore natural gas through a controversial procedure. The controversy about scientific evidence for the impact of fracking has raged unabated for over a decade. It has now become one of the most popular debates between the supporters of Greenpeace or environmentalists and the energy companies. Now it’s a centrepiece of discussion in the context of the energy solution and considered as a really important source of energy by last few decades. Recent developments in the field of natural gas have led

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Natural Gas Essays (Examples)

951+ documents containing “natural gas” .

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Natural gas drilling a retrospect.

7. Wells on Indian eservations Wells to drilling natural gas are often found on Indian reservations as the respective lands are rich in resources. Historically, debates have emerged based on the undervaluation of the gas extracted, which led to the inhabitants of the region being only limitedly remunerated for the usage of the land and the extraction of the natural gas. The matter has been addressed throughout the years (judiciary trials have even been filed) and the situation is more balanced in the present. Consequently, today, several Indian reservations base much of their economic development on operations of natural gas extraction. The most relevant example in this sense is given by the Blackfeet Indian eservation, which generates income from leasing lands for gas extraction. The large majority of the drilling operations were centered in the western part of the reservation, but an agreement signed in January 2009 allows the new processors of….

References:

Baker, D., August 4, 2008, the Compromise "Drill Anywhere" Plan, Truth Out,  http://www.truthout.org/article/the-compromise-drill-anywhere-plan  last accessed on March 26, 2009 -- Truth Out is an independent website, supported only the contributions made by their readers. They did not seek the sponsorship of for-profit organization as their focus was on presenting the facts from an objective standpoint and they also wanted to not become associated with any institution. The ultimate aim of the website is to present the readers with extensive information on various topics of interest and as such assist them in making the most adequate decision. The main areas of interest include social progress, environmental concerns, human rights, healthcare or international relations.

Dentry, E., July 22, 2008, Natural Gas Drilling Hurting Land, Rocky Mountain News,  http://www.rockymountainnews.com/news/2008/jul/22/feverish-natural-gas-drilling-has-wreaked-havoc  / last accessed on March 26, 2009 -- Rocky Mountain News is in many ways similar to Truth Out, with the main difference that the first only covers a limited geographic zone -- the area in the vicinity of the Rocky Mountains. Their news are organized under eight categories, including general news, business news, sports, entertainment, living, outdoor activities, opinions and multimedia. Ed Dentry's article is featured under the outdoors section, under the subcategory of columns and blogs. The article is a presentation of drilling activities for natural gas from the standpoint of those who suffer the negative consequences. Its findings are reliable as they are based on direct research and his conclusions resemble those of other researchers.

Gallun, R.A., Wright, C.J., Nichols, L.M., Stevenson, J.W., 2001, Fundamentals of Oil and Gas Accounting, 4th Edition, PennWell Books -- the work is extremely useful for a generalist understanding of oil and natural gas extraction and the adherent processes. It explains basic notions such as the formation of the natural gas reserves or the history of drilling operations. Its easy-to-read style makes the work accessible to all those interested, be them exports or novices. The downside of the book is however that the consequent revised editions bring in little additional information. In this context then, the book is more suitable for a generalist look at the industry, rather than a specific and modern analysis.

Hurdle, J., March 13, 2009, U.S. Energy Future Hits Snag in Rural Pennsylvania, Truth Out,  http://www.truthout.org/031309E  last accessed on March 26, 2009

Natural Gas Is Less Polluting Than Coal or Other Fossil Fuels

Hydraulic Fracking Issues There has been a great deal of controversy over the technique called hydraulic fracking, which environmentalists and others have claimed it is a dangerous procedure to extract natural gas from the earth. The industry insists it is safe, and recently the Environmental Protection Agency issued research that indicates fracking can be safely done. hat is hydraulic fracking? Fracking is a procedure in which water is injected under high pressure into a "bedrock formation," which in turn releases natural gas that has been trapped in rock formations (USGS). This paper points out the benefits of hydraulic fracking Main Body of the Paper on Hydraulic Fracking Fracking involves a process where water is mixed with chemicals and "fine sands, then pumped at extremely high pressure into the shale rock," which fractures the rock, according to the United States Geological Survey (USGS). Once the rock below the surface of the earth is fractured,….

Works Cited

Environmental Protection Agency. "Assessment of the Potential Impacts of Hydraulic

Fracturing for Oil and Gas on Drinking Water Resources." Retrieved November 24, 2015,

From  http://www.epa.gov . 2015.

Grace Communications. "Natural Gas Fracking -- Introduction." Retrieved November 24,

LNG Liquefied Natural Gas Liquefied Natural Gas

LNG Liquefied Natural Gas Liquefied Natural Gas LNG LNG (liquefied natural gas) Why using LNG (liquefied natural gas) as a marine fuel is an innovative subject? Liquefied natural gas (LNG) is a clean-burning fuel that is obvious, colorless, fragrance-free, noncorrosive, and harmless. One cubic meter of LNG is equal to 600 cubic meters of natural gas at atmospheric pressure, thus providing for better storage ability and easier transporting. LNG is presently less costly than petroleum based-fuels and is expected to stay the lesser price fuel for the probable future. These innate properties create LNG an attractive alternative fuel for concentrated fuel consuming request such as hardwearing trucking, Oil and natural gas borer, browbeat, mining, aquatic, and other manufacturing consumer. It is also a perfect power cause for distant site where contact to natural gas pipelines is restricted. The command for LNG fuel is speed up in the United States because of natural gas's plentiful….

Air Products and Chemicals, Inc., LNG Alternative Fuel, airproducts.com, n.d, web. Retrieved 29 October 2012 from http://www.airproducts.com/industries/energy/lng/lng-fuel.aspx

Bandemehr, (2012). Reducing Emissions from Ships: AU.S.-Mexico Fuel Switching Demonstration, epa.gov, 23 July 2012, web. Retrieved 29 October 2012 from  

Current and Future Supply and Demand of Natural Gas

Future Supply and Demand of Natural Gas The technology developed in the United States has become available for application in other countries mainly through efforts of major service companies. Until the mid 1990s, Canada's gas production was predominantly from conventional gas formations. This conventional gas filled the available pipeline capacity and unconventional gas resources, which are more difficult to produce, were largely ignored. However, as pipeline capacity was expended and conventional gas production began approaching a peak, market conditions in Canada began to favor development of unconventional gas (Harry, pp88-96) In the recent past, the natural gas markets were fairly predictable; they are now undergoing profound and uncertain changes. Independently, each regional market had developed gradually deposits from the nearest pipeline networks and limiting exchanges between areas. The current trend is marked by greater competition between the available sources and greater flexibility in systems gas. (Tad, pp14-15) It is apparent that….

Works cited

Ammann, Daniel. The King of Oil: The Secret Lives of Marc Rich. New York: St. Martin's Press, 2009, p16-38.

Andrei Viforeanu, Wayne Wells, Jay W. Hodny. "Passive surface geochemical survey leads to dry gas discoveries," 2003, p44-46.

Bill White. "State's consultant says nation is primed for using Alaska gas." Energy Bulletin, 2005, p15.

Chris Vernon. "UK gas and electricity crisis looming." Energy Bulletin, 2005, p4-6.

Natural Gas and Revenues

For each item identified, explain why the data item is important, and describe the level of detail that would be necessary for the data to be useful. The major data items that Citizen's Gas should be incorporating into their system include: the number of customers they are working with, the customer rate structure and the heating factors. As far as the number of customers is concerned, this is when the company is estimating future usage among based on current demand. The reason why this data is important, is because it helps executives to determine, how much natural gas they will need to meet customer demand throughout the year. ("20.1 Adapted from CMA Exam," n.d.) The customer rate structure is when monthly data is collected and sent to managers about changes in revenues. This helps everyone to determine if there are sudden shifts in usage. As a result, the level of data….

Bibliography

20.1 Adapted from CMA Exam. (n.d.).

Citizen's Gas. (n.d.).

Natural Gas and Oil

EXXON Upstream Division: ExxonMobil Although ExxonMobil remains a successful company, like all oil and gas organizations, it remains highly dependent upon market conditions, including shifts in the price of crude oil and natural gas. "A decline in oil or gas prices lowers ExxonMobil Upstream business profit margins, whereas an increase in oil and natural gas prices lowers ExxonMobil Downstream and Chemical business profit margins" (Miglani, 2016, par.14). While the size and diversification of the Exxon Corporation has permitted it to mitigate the severity and degree to which such conditions impact its profits on one hand, on the other hand, it still must review its operations and total quality management (TQM) policies to ensure that it is maximizing its opportunities as an organization. Inputs and Outputs ExxonMobil is one of the largest and most famous oil and gas companies in the world. Its upstream segment engages in the exploration of and the production of crude….

Driving innovation. (2017). Exxon. Retrieved from:

 http://corporate.exxonmobil.com/en/current-issues/climate-policy/climate-perspectives/energy-developing-new-technologies-to-reduce-ghg 

Global product quality management system. (2017). Exxon Mobile. Retrieved from:

http://www.exxonmobilchemical.com/Chem-English/Files/Resources/220515-global-product-quality-management-system-1.pdf

Gas Turbine Systems a Gas Turbine Also

Gas Turbine Systems A gas turbine, also known as a combustion generator, is a kind of inner combustion system. It consists of an upstream revolving compressor coupled to the downstream generator, as well as a combustion chamber amid the two. Power is included in the gas stream inside the combustor, where gas is combined with air as well as then ignited. Inside the high-pressure atmosphere of the combustor, burning of this gas raises the temperature. The various products of this combustion are pushed inside the turbine area. ight there, the higher velocity as well as quantity of the gas movement is redirected via the nozzle across the turbine's rotor blades, moving the generator which drives the compressor as well as, for a few turbines, propels their mechanical outcome. The power given up for the generator originates from the decrease in the heat as well as stress of the exhaust fuel (Treager,….

Curtis, C.G. (1899). Patent US0635919. Available at:  http://www.freepatentsonline.com/0635919.pdf .

Eckardt, D. And Rufli, P. (2002). Advanced Gas Turbine Technology - ABB / BBC Historical Firsts. ASME J. Eng. Gas Turb. Power, p. 124, 542-549

Kamps, T. (2005). Model Jet Engines. Traplet Publications.

Kay, A. (2002). German Jet Engine and Gas Turbine Development 1930-1945, Airlife Publishing.

Gas & Oil Shortage Oil

All these factors have added too many variables to the Middle East, an important region for crude oil production" (Xuequan, 2008). 4. Conclusions The improved standards of living have contributed significantly to an increase in the population's demands. And to satisfy these demands, with the ultimate scope of registering higher profits, the American corporations have abused the natural resources and are now moving towards the resources in other countries. Two such vital resources are crude oil and natural gas. The situation of gas is quite stable, but that of oil is critical. Based on limited natural resources, a weakening American dollar, speculative operations on the international market, but also the regulations implemented by OPEC and the conflicts in the Middle East, the price of oil has sky rocked - and it is likely to continue its ascendant trajectory. eferences Leonard, a., 2008, the Story of Stuff, http://storyofstuff.ethicalbrand.org/last accessed on May 30, 2008 Wallace, E.,….

Leonard, a., 2008, the Story of Stuff, http://storyofstuff.ethicalbrand.org/last accessed on May 30, 2008

Wallace, E., May 13, 2008, the Reason for High Oil Prices, Business Week,  http://www.businessweek.com/lifestyle/content/may2008/bw20080513_720178.htm?campaign_id=rss_topStorieslast  accessed on May 30, 2008

Xuequan, M., April 18, 2008, Weak Dollar Not Sole Reason for High Oil Prices, Xinhua News Agency,  http://news.xinhuanet.com/english/2008-04/18/content_7999121.html . Ast accessed on May 30, 2008

2004, Why are Oil Prices so High?, BBC News, http://news.bbc.co.uk/2/hi/business/3708951.stmlast accessed on May 30, 2008

Gas-Burning and Wood-Burning Fireplaces Now That Colder

Gas-Burning and Wood-Burning Fireplaces Now that colder weather is bearing down, many people are turning to their fireplaces for warmth and comfort, as they have done for centuries. But while building a fire was once a necessary skill to achieve the glowing warmth of a blaze in the fireplace, modern technology has now made creating a roaring fire as easy as flipping a switch. Homeowners now have the choice between gas-burning and wood-burning fireplaces in their homes, but what are the differences between the two and is there a clear advantage of one over the other? The essential difference between the two is obvious: the material used to build the fire. Wood-burning fireplaces rely on cured fire logs and kindling, whereas gas fireplaces are filled with fake logs and rely on a connection to a gas line for burning fuel. Because of the difference between the burning materials, the construction of wood-burning….

"Burning Wood Is More Expensive Than Gas?! " Hearth.com. Retrieved from  http://www.hearth.com/econtent/index.php/forums/viewthread/62420/ 

Guttman, George. "Wood vs. Gas Fireplaces." Sound Home Resource Center. Retrieved from http://www.soundhome.com/article/wood-vs.-gas-fireplaces-and-stoves

Heavier Environmental Regulation on Oil and Gas Drilling Activities

Regulating Oil and Gas Drilling and Transport The American economy runs on energy produced from oil, coal, natural gas, hydroelectric power, nuclear power and renewable sources like solar and wind energies. In fact according to a report in the Congressional Research Service, oil provides the United States with 40% of its total energy needs. It is used in myriad ways, providing "…fuel for the transportation, industrial, and residential sectors" (Ramseur, 2012). Because of the great need for energy to fuel the American economy, oil in "vast quantities" enters the country and moves through the country by ships and by pipelines, Ramseur explains in the Congressional Research Service. Hence, it is inevitable that some spills will occur, and they certainly do occur, notwithstanding the attempts by the industry to conduct its business safely. The U.S. Energy Information Administration (EIA) reports that the U.S. consumed 6.87 billion barrels (about 18.83 million barrels a day)….

American Petroleum Institute. (2012). Energy Security. Retrieved February 15, 2013, from http://www.api.org.

Barkham, Patrick. (2010).Oil spills: Legacy of the Torrey Canyon. The Guardian. Retrieved February 14, 2013, from  http://www.guardian.co.uk .

Griffin, Catherine. (2013). European Satellite Confirms Arctic Ocean is on Thin Ice, Global

Warming Strikes Again. Science World Report. Retrieved February 15, 2013, from  http://www.scienceworldreport.com .

Role BP Construction Gas Pipe Line Baku Tbilisi Erzurum

P Construction Gas Pipe Line THE ROLE OF P IN THE CONSTRUCTION OF THE AKU-TILISI-ERZURUM GAS PIPE-LINE The aku-Tbilisi-Erzurum gas pipeline is a massive project that involves three countries -- Azerbaijan, Georgia and Turkey. It is a project that is based on the natural gas deposits, of more than one trillion cubic meters, in Azerbaijan's portion of the Caspian Sea, an area known as the Shah-Denz gas field- 12km in width and 30km length of a stripe of the Caspian Sea. The stripe has a depth of 50m on the northern side and 500m on the southern side. The deposit is the biggest gas deposit situated in Azerbaijan sector of the Caspian Sea. This pipeline was constructed being parallel to the aku-Tsibili-Cyehan oil pipeline that runs from Azerbaijan to the Mediterranean coast of Turkey. The TE pipeline is also known as either South Caucasus (gas) Pipeline or Shah Deniz pipeline. The construction project….

Baloghlanov, Elshan. Azerbaijan & New Energy Resources. June 8, 2009. www.azconsulatela.org.

Muttitt, Greg, and James Marriott. Some Common Concerns. Lincolnshire: PLATFORM Campagna per la Riforma della Banca Mondiale, CEE Bankwatch Network,, 2002.

Petersen, Alexandros. "The Case of the East-West Transport Corridor." Integrating Azerbaijan, Georgia, and Turkey with the West, 2007: 1-20.

Shenoy, Bhamy, Gurcan Gulen, and Michelle Michot Foss. "Analysis Suggests Economic Viability of Trans-Caspian Sea Gas Line." The Oil & Gas Journal, 1999: 51-58.

Managing Natural Resources - Natural

In the GEOMA methodology, carbon dioxide displaces methane within the water lattice which reforms into a more stable state than was present with the methane. While this new technology is still in development, it is very promising (Traufetter, 2007). ecent advances by researchers from Japan, China, India, Canada, Australia, and the United States could result in commercial exploitation of Methane gas within the decade. Natural gas recovery techniques have come a long way since that first primitive well in Fredonia. Now, a complex and sophisticated process brings natural gas from the field to your home. Exploration for new sources of natural gas has become a highly evolved science. Geologists study the physical structure of a potential site. The scientists can use seismology and magnetometers to develop three dimensional models of the earth using computer programs designed for that purpose. These models allow the geologists to narrow down specific areas that….

Cross-Boundary Offshore Oil & Gas Resources Joint

Cross-oundary Offshore Oil & Gas Resources Joint Development Agreements & Frameworks 1/6/2014 [Type the company name] User Table of Contents 1. Introduction 3 2. The rule of capture 3 3. The CooperationApproach 4 4. Legal framework to develop trans-boundary offshore O&G resources 5 4.1 Cross-border unitization agreements 6 4.2 Joint Development Agreements (JDA) 6 4.3 National law and its application in Co-operative Agreements 7 4.4 ilateral treaties for trans-boundary oil and gas exploration 7 4.5 The Framework Agreement Approach 9 4.6 The Third Party approach to dispute resolution 10 5. Conclusion 10 ibliography 11 Treaties & Conventions 11 ooks 11 Articles 12 Websites 13 1. Introduction Subsea resources such as petroleum and natural gas are important sources of meeting the energy demand of countries. Cross-territory disputes are arising among different countries. Advancement in technology in exploration and extraction of subsea resources has expedited the overall procedure of competitive drilling. This is due to aggressive efforts by each country to explore its subsea resources. Since oil and gas reserves migrate towards lower pressure areas,….

Treaties & Conventions

Cross boundary petroleum cooperation between the UK and the Kingdom of Norway 2005

Treaty, Timor Sea. "Agreement between the Government of Australia and the Government of the Democratic Republic of Timor-Leste relating to the Unitization of the Sunrise and Troubadour fields Department of Foreign Affairs and Trade, Canberra (Dili, 6 March 2003)(1)." Accessed from

U.S-Mexico Trans-boundary hydrocarbons agreement 2012

Development of Oil and Gas

il and Gas Development of Two Important Materials in Earth's Early History According to scientists, Earth began its life 4.6 billion years ago, when cosmic dust collided to form increasingly large particles. These particles, after millions of years of colliding and increasing in mass, eventually formed the Earth, with a mass similar to what it is today (5.9736 x 1024 kg or 5,973,600,000,000,000,000,000,000 kg) . Soon, the Earth's atmosphere began to form, as well as various minerals within its core. Studying the Earth is a fascinating endeavor, yet one that comprises extensive research and writing. For the purposes of this paper, I will examine two elements that are of vital importance to human life today: oil and gas. In this study, I will thus speak both about the development of the two materials in the Earth's early history-how they developed, what factors contributed to this development, and when this development occurred --….

Oil and gas industries also comprise upstream and downstream exploration. The upstream process includes exploration and production and the downstream refers to refining crude oil and gas, distribution of the two and marketing. Some companies may be "fully integrated," meaning they have capabilities for both upstream and downstream interests; others only concentrate on exploration and production and are known as E&P companies. Furthermore, many companies operate nationally and internationally, while others are "independent." This short description of the oil and gas development process is very important because it can show how two natural fuels found in the Earth are utilized to improve our daily lives, for others' financial gain, of course. [16: "Overview of the oil and gas exploration and production process." Environmental Management in Oil and Gas Exploration and Production. Web. 19 Apr. 2011. . ]

This paper has focused upon the development of the two fuels in the Earth's early history and has discussed oil and gas development, complete with how this development process took place, what factors contributed to it and how long it took. Furthermore, the paper has also analyzed the impact of oil and gas towards humanity and the complex process through which these resources are handled today, thus placing this paper's aim in a larger context and showing the importance of this study.

Occ Safety Oil Offshore and Gas Installations

Occ Safety Oil Offshore and Gas Installations: Safety Culture The offshore oil and gas installation industry is one of the most notoriously hazardous due to its extreme and remote conditions. Both acute and chronic health and safety issues plague offshore oil and gas industry workers. However, offshore oil and gas installation sites are not more hazardous than other natural resources-related occupational sectors; moreover, the occupational safety in the offshore oil and gas industries are on par with other industries (U.S. Department of Labor, Bureau of Labor Statistics, 2011). The same is true for offshore oil and gas installation sites in other countries like the United Kingdom, where it was found that "the sector demonstrates a relatively low lost time injury rate and has, for many years, outperformed a number of comparatively lower hazard industrial sectors (Oil & Gas UK, 2012). The hazards of working in offshore oil and gas installations are well-known and….

American Petroleum Institute (2013). The oil and natural gas industry's ongoing commitment to safety. Retrieved online: http://www.api.org/policy-and-issues/policy-items/safety/~/media/6A15AB96288D44569B23217E84D79E13.ashx

"American Petroleum Institute Guide to Reporting Process Safety Events," (n.d.). Version 2.0. Retrieved online: http://www.api.org/environment-health-and-safety/process-safety/process-safety-standards/~/media/files/ehs/health_safety/api_guide_to_report_pses_2_0.ashx

Canadian Association of Petroleum Producers (n.d.). Safety training in Atlantic Canada's Offshore Oil and Gas Industry. Retrieved online:  http://www.capp.ca/getdoc.aspx?DocID=215473 

Flin, R., Mearns, K., Fleming, M. & Gordon, R. (1996). Risk perception and safety in the offshore oil and gas industry. Retrieved online:  http://www.hse.gov.uk/research/othpdf/400-499/oth454.pdf

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Essay on natural gas.

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Read this essay to learn about Natural Gas. After reading this essay you will learn about: 1. Importance and Uses of Natural Gas 2. Reserves and Consumption of Natural Gas 3. Regions Producing.

Essay # Importance and Uses of Natural Gas :

During the late 1990s, among the different fossil fuels, natural gas has registered fastest growth in consumption. It now (2,000) contributes 23% of global commercial energy. Since 1975, production of natural gas has experienced a massive growth of 70%.

The major uses of natural gas are:

(a) It is widely used as fuel in industries and domestic cooking purposes.

(b) Petrochemical industry uses natural gas as fuel and raw material.

(c) Different industries, mostly chemical — artificial rubber, plastics, fertilizer, ink, car­bon—use natural gas as raw material.

(d) Natural gas is sometimes used for artificial lighting.

Essay # Reserves and Consumption of Natural Gas :

Proven natural gas reserves has increased significantly in the 1990s: Russian Federation possesses one-third of the proven gas reserves of the world (48,160 billion cubic meters in 1993), followed by Iran (20,659 billion cubic metres), U.A.E. (5,794 billion cubic metres), Saudi Arabia (5,620 billion cubic metres), U.S.A. (4,593 billion cubic metres) etc.

As far as consumption of natural gas is concerned, U.S.A.is well ahead of other coun­tries—consuming one-third of the world total. So, it is a deficient-producing country where bulk of the consumption is generally imported from Middle East countries. The other notable consumers of natural gas are Russia (20%), Germany, France, U.K. etc.

Essay # Regions Producing Natural Gas :

The natural gas producing nations are distributed in five geographical regions:

(a) American region:

U.S.A., Canada, Mexico, Venezuela etc.

(b) European region:

Russian Federation, U.K., France, Romania etc.

(c) Middle-East Asia:

Leading producers are Saudi Arabia, Iran, Iraq, Kuwait, Qatar etc.

(d) Far Eastern region:

Important producers are Bangladesh, Pakistan, Indonesia, Malaysia, India etc.

(e) African region:

Libya, Algeria, Egypt, Nigeria etc.

Secures second position in natural gas production, next only to Russia. In 2004, it produced 536,000 million m 3 natural gas. As far as reserves are concerned, U.S.A. secures fifth place, having 4,599 billion cubic metres of gas reserve. Much of the gas fields in U.S.A. are associated with crude oil fields within Texas, Louisiana, Oklahoma, New Mexico and California states.

A significant producer of natural gas, securing third place in the world. In 1995, it produced 6,137 pet joules of energy from natural gas. Canada has more than 2,500 billion cubic metres of gas reserve. The major gas-fields are situated at Alberta and British Columbia states.

More than 2,000 billion cubic metres of gas reserve. Most of its gas-fields are located within the Tampico and Tuxpum region.

(b) European region :

1. Russian Federation:

Russia is the undisputed world leader of natural gas production. In 2004, it produced 632,000 million m 3 natural gas.

Russia contains the largest reserves of natural gas—48,160 billion cubic metres, or one- third of the world.

Major gas-producing regions are:

(i) Black Sea region—Maikop, Berezanskoe, old gas fields, still produce huge amount.

(ii) Volga basin—Buguruslan, Verkhnie etc. produce both oil and gas.

(iii) Sakhalin islands—Tungor in Sakhalin is one of the greatest gas producing regions on the earth.

Besides these regions, Pechora Valley and Taz River Valley are other important gas-producing regions.

2. United Kingdom:

Of late, U.K. has emerged as a leading gas-producing country in Europe. Exploration of new oil and gas fields in the off-shore regions of North Sea enabled it to export sizable portions of its product.

(c) Middle-East Asia :

1. Saudi Arabia:

Saudi Arabia holds 5,620 billion cubic metres of gas reserve—the fourth largest in the world. In 2004, it produced more than 64,000 million m 3 natural gas. Most of the natural gas here comes from oil-wells.

Iran possesses the second largest gas reserve in the world (20,659 billion cubic metres). In 2004, it produced 85,500 million m 3 gaseous fuel. Oil-fields in Iran produce the natural gas.

United Arab Emirates has the third largest gas reserve in the world (5,794 billion cubic  metre). In 2004, it produced 45,800 million m 3 natural gas. Bu-Musa, A1 Bandus are the major gas-fields in U.A.E.

4. Other producers:

Qatar and Iraq are the other noted gas-producing countries in the world.

(d) African region :

In the African continent, Libya and Nigeria are two important gas-producing countries. It has been estimated that Algeria possesses more than 3,500 billion cubic metres of gas, mostly concentrated in and around Hassi Massaud area.

(e) Far Eastern Asia :

Bangladesh — in far East, is a leading gas-producing country. Here, huge natural gas re­serves have been earmarked in the eastern hilly tracts.

Indonesia— is another leading gas-producing country where estimated reserve is around 2,000 billion cubic metres.

Pakistan — is a surplus gas-producing country. In near future, natural gas production may experience a big boost here.

India— possesses some amount of natural gas, mostly concentrated in Bombay High, Tripura, Gujarat and Assam oil-field areas.

Related Articles:

• Production and Distribution of Natural Gas around the World
• Natural Gas of the World and their Uses (with statistical information)

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• Essay on Effects of Global Warming

Introduction

Our world, as well as all living things such as animals, birds, insects, trees, and plants, were created by nature. They all have the right to live their lives as they see fit, but the human being is the most perplexing of all living creatures. For our own needs and greed, we humans are killing nature, and we will pay the price in the form of catastrophe. Here we have provided both long and short essays on the effects of Global Warming for students of Classes 1 to 12.

Long Effect of Global Warming Essay in English

As carbon dioxide (CO 2 ) and other air pollution and greenhouse gases build up in the atmosphere, they absorb sunlight and solar radiation that has bounced off the earth's surface, resulting in global warming. Normally, this radiation will disperse into space, but these contaminants, which can remain in the atmosphere for years or decades, trap the heat and cause the earth to get hotter. The greenhouse effect is the result of this.

So, What causes Global Warming?

Natural Causes of Global Warming:

For decades, the world has been shifting. The natural rotation of the sun causes global warming by changing the strength of sunlight and bringing it closer to the earth.

Greenhouse emissions are another contributor to global warming. 

Carbon monoxide and sulphur dioxide are greenhouse gases that absorb solar heat rays and prevent them from escaping the earth's surface. The earth's temperature has increased as a result of this.

Another factor that contributes to global warming is volcanic eruptions. A single volcanic eruption, for example, can release a significant amount of carbon dioxide and ash into the atmosphere.

As carbon dioxide levels rise, the earth's temperature rises, and greenhouse gases absorb solar radiation.

Finally, methane is a contributor to global warming. Methane is a greenhouse gas as well. Methane is 20 times more effective than carbon dioxide at trapping heat in the atmosphere. Methane gas can usually be used in a variety of places. Cattle, landfills, natural gas, petroleum systems, coal mining, mobile explosions, and industrial waste processes are only a few examples.

Human Influences on Global Warming:

Humans are more responsible for global warming than natural causes. Because of modern human lifestyles, the earth has been evolving for many years and continues to do so. Industrial production, fossil fuel combustion, mining, cattle rearing, and deforestation are all examples of human activities.

The industrial revolution is the first thing. Industrial devices have been powered by fossil fuels. All we use is made up of fossil fuels. When we purchase a cell phone, for example, the process of manufacturing the phone involves machines, which use fossil fuels, and carbon dioxide is released into the environment during the process. Aside from industry, transportation, such as automobiles, emits carbon dioxide by the exhaust.

Mining is another problem. Methane would be trapped under the earth during the mining process. Furthermore, raising cattle results in the release of methane in the form of manure. Cattle, on the other hand, are noteworthy because they are equally responsible for the occurrence of global warming.

Then there's deforestation, which is by far the most common problem. Humans have been cutting down trees to manufacture documents, wood, build homes, and other things, so deforestation is a human factor.

Humans also emit carbon dioxide as they breathe. As a result, carbon dioxide has been released into the atmosphere by millions of people. If human deforestation continues, the carbon dioxide released by human breathing will remain in the atmosphere.

Effects of Global Warming

Every year, scientists learn more about the effects of global warming, and all agree that if current patterns continue, environmental, economic, and health impacts are likely. Here's a taste of what we can expect in the coming months:

Melting glaciers, early snowmelt, and extreme droughts would intensify water shortages in the American West, raising the risk of wildfires.

Coastal flooding will occur along the Eastern Seaboard, especially in Florida, as well as in other areas such as the Gulf of Mexico.

New pests will wreak havoc on forests, crops, and towns, as will heat waves, heavy rains, and increased flooding.

Many plant and animal species could become extinct if ecosystems such as coral reefs and Alpine meadows are disrupted.

Increased pollen-producing ragweed growth, higher levels of air pollution, and the spread of conditions favorable to pathogens and mosquitoes will make allergies, asthma, and infectious disease outbreaks more likely.

In the above effect of global warming essay in English, we have discussed in depth all the natural causes of global warming and how humans have contributed towards its drastic increase. Below we have provided short effects of the Global Warming essay for students of Classes 1 to 5.

Effect of Global Warming Short Essay

Since hundreds of years ago, greenhouse gases have remained in the atmosphere for several years. Global warming, on the other hand, would have disastrous consequences for the planet. If global warming persists, a slew of negative consequences will emerge. Melting polar ice caps, economic effects, warming oceans, and more storms, disease transmission, and earthquakes are all examples.

The melting of the polar ice caps is the first consequence. The ice at the North Pole will melt as the temperature increases. Since melting glaciers become seas, the first result of ice melting would be an increase in sea levels. “If the ice melted today, the seas will rise about 230 feet,” according to the National Snow and Ice Data Center. Many low-lying areas, such as the Netherlands, are affected. Once the North Pole melts, the Netherlands will be submerged in water. However, that will not happen easily, and the sea level will continue to rise.

Another impact is the loss of habitat for some species. Polar bears and tropical frogs would become extinct as a result of climate change. Furthermore, since animals are not like humans, different birds will migrate to other locations. They are unable to adjust to changes in their climate, such as temperature or living conditions.

The next result is that more hurricanes will occur, with economic implications. Houses are damaged by hurricanes, and the government will have to spend billions of dollars to repair the damage, and people will need places to stay or will be killed. When a disaster strikes, many people die and illnesses spread. Diseases are more serious because they can spread rapidly to other people, allowing more people to catch the disease. Diseases can also become more serious as the weather changes.

Importance of an Essay on Global Warming

The essay on global warming is important because it will help students to understand the effects of global warming and how it impacts life on earth. They will then be aware and likewise, share their knowledge with their fellow beings and make them conscious of the human actions that lead to an increase in global warming.

Climate change is an issue that humans are actually facing, and the ones causing these problems are humans. Although it is difficult to avoid global warming, people can indeed help to mitigate and slow its effects. If no action is taken to address this problem, people will perish as a result of cli mate change and natural disasters. Humans changed the world; now it's time for humans to change themselves.

FAQs on Essay on Effects of Global Warming

1. State Some Ways to Reduce Global Warming ?

We should reduce the emission of greenhouse gases into the atmosphere to reduce global warming. 

We can minimise global warming by reducing our use of oil, electricity, and other practices that contribute to global warming. To save fuel, we should opt for a hybrid vehicle that uses less gasoline. 

Taking public transportation or carpooling to work has the potential to minimise carbon dioxide emissions while still saving money. 

Recycling is another way to help combat global warming. Reusing plastic bags, bottles, documents, or glass may help to minimise waste. 

Finally, open burning should be forbidden, such as the burning of dry leaves or garbage. When garbage is burned with plastic, carbon dioxide and toxic gases are released. Furthermore, since global temperatures are rising, the government should minimise deforestation. Trees will assist in the reduction of global warming.

2. Define Global Warming ?

Global warming is the long-term warming of Earth's climate system that has been observed since the pre-industrial era (between 1850 and 1900) as a result of human activities, mainly fossil fuel combustion, which raises heat-trapping greenhouse gas levels in the atmosphere. The words are sometimes used interchangeably, though the latter applies to both human- and naturally-caused warming, as well as the implications for our world. The average rise in Earth's global surface temperature is the most common metric.

3. How to download the Essay on Effects of Global Warming from the Vedantu Website?

The Vedantu website provides a download of the Essay on Effects of Global Warming, which is accurate and well-structured. Vedantu's official website provides the Essay in PDF version which is available for download for free of cost. Students are advised to download the Essay on Global Warming from the Vedantu website to get an idea of the word limit, sentence construction, and basic understanding of what a good essay consists of. Vedantu essay is concise and apt for school-going, students. It uses simple language, perfect for students with limited vocabulary. Following the Vedantu essay enables students to be sufficiently prepared for any essay topics and guarantees that students will score good marks. To access the Essay on Plastic Ban, click on the link available above.

4. Why is plastic bad for the environment?

Nonrenewable resources such as coal, natural gas, and crude oil are used to make plastics. Because plastic bags take a long time to disintegrate, they have a substantial environmental impact. If toxic compounds are allowed to deteriorate, there is concern that they will leak into the environment. Rather than degrading completely, plastic dissolves into smaller chunks and microscopic particles known as microplastics. Microplastics regularly end up in bodies of water, endangering animals. Furthermore, dangerous chemicals are released into the soil when plastic bags degrade in the sun, and harmful substances are released into the air when plastic bags are burnt, resulting in air pollution. All of these reasons make plastic one of the most harmful materials on the earth for all of these reasons. Plastic is one of the main reasons for Global Warming and thus needs to be eliminated from the world.

5. Is writing an essay hard?

Essay writing is a difficult task that needs a great deal of study, time, and focus. It's also an assignment that you can divide down into manageable chunks such as introduction, main content, and conclusion. Breaking down and focusing on each individually makes essay writing more pleasant. It's natural for students to be concerned about writing an essay. It's one of the most difficult tasks to do, especially for people who aren't confident in their writing abilities. While writing a decent essay is difficult, the secret to being proficient at it is reading a lot of books, conducting extensive research on essential topics, and practicing essay writing diligently.

6. Who prepares the essay on global warming for Vedantu?

The Essay on Effects on Global, designed by Vedantu, is created by a group of experts and experienced teachers. The panel of experts have created the essay after analyzing important essay topics that have been repeatedly asked in various examinations. The Essays that are provided by Vedantu are not only well-structured but also accurate and concise. They are aptly suited for young students with limited vocabulary. For best results, the students are advised to go through multiple essays and practice the topics on their own to inculcate the habits of time management and speed.

7. What will be the impact on the phenomena of Global Warming if we ban plastic and petroleum products?

Plastic and petroleum product bans can undoubtedly aid in the conservation of non-renewable resources that, once gone, may not be recovered. Plastic use has two significant negative consequences: it emits carbon dioxide, which contributes to the greenhouse effect, and it increases rubbish collecting in landfills and seas. Bans should be implemented since they are successful in eliminating large amounts of plastic trash. Plastic can be eliminated; but, it will need advances in engineering and applied science, and the capability to do so currently exists. With each passing year, humanity's reliance on plastic gets greater. Thus, one of the only ways to eliminate or reduce global warming is through the elimination of the use of plastic and petroleum products.

Essay on Greenhouse Effect for Students and Children

500 words essay on greenhouse effect.

The past month, July of 2019, has been the hottest month in the records of human history. This means on a global scale, the average climate and temperatures are now seen a steady rise year-on-year. The culprits of this climate change phenomenon are mainly pollution , overpopulation and general disregard for the environment by the human race. However, we can specifically point to two phenomenons that contribute to the rising temperatures – global warming and the greenhouse effect. Let us see more about them in this essay on the greenhouse effect.

The earth’s surface is surrounded by an envelope of the air we call the atmosphere. Gasses in this atmosphere trap the infrared radiation of the sun which generates heat on the surface of the earth. In an ideal scenario, this effect causes the temperature on the earth to be around 15c. And without such a phenomenon life could not sustain on earth.

However, due to rapid industrialization and rising pollution, the emission of greenhouse gases has increased multifold over the last few centuries. This, in turn, causes more radiation to be trapped in the earth’s atmosphere. And as a consequence, the temperature on the surface of the planet steadily rises. This is what we refer to when we talk about the man-made greenhouse effect.

Causes of Greenhouse Effect

As we saw earlier in this essay on the greenhouse effect, the phenomenon itself is naturally occurring and an important one to sustain life on our planet. However, there is an anthropogenic part of this effect. This is caused due to the activities of man.

The most prominent among this is the burning of fossil fuels . Our industries, vehicles, factories, etc are overly reliant on fossil fuels for their energy and power. This has caused an immense increase in emissions of harmful greenhouse gasses such as carbon dioxide, carbon monoxide, sulfides, etc. This has multiplied the greenhouse effect and we have seen a steady rise in surface temperatures.

Other harmful activities such as deforestation, excessive urbanization, harmful agricultural practices, etc. have also led to the release of excess carbon dioxide and made the greenhouse effect more prominent. Another harmful element that causes harm to the environment is CFC (chlorofluorocarbon).

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Some Effects of Greenhouse Effect

Even after overwhelming proof, there are still people who deny the existence of climate change and its devastating pitfalls. However, there are so many effects and pieces of evidence of climate change it is now undeniable. The surface temperature of the planet has risen by 1c since the 19th century. This change is largely due to the increased emissions of carbon dioxide. The most harm has been seen in the past 35 years in particular.

The oceans and the seas have absorbed a lot of this increased heat. The surfaces of these oceans have seen a rise in temperatures of 0.4c. The ice sheets and glaciers are also rapidly shrinking. The rate at which the ice caps melt in Antartica has tripled in the last decade itself. These alarming statistics and facts are proof of the major disaster we face in the form of climate change.

600 Words Essay on Greenhouse Effect

A Greenhouse , as the term suggests, is a structure made of glass which is designed to trap heat inside. Thus, even on cold chilling winter days, there is warmth inside it. Similarly, Earth also traps energy from the Sun and prevents it from escaping back. The greenhouse gases or the molecules present in the atmosphere of the Earth trap the heat of the Sun. This is what we know as the Greenhouse effect.

Greenhouse Gases

These gases or molecules are naturally present in the atmosphere of the Earth. However, they are also released due to human activities. These gases play a vital role in trapping the heat of the Sun and thereby gradually warming the temperature of Earth. The Earth is habitable for humans due to the equilibrium of the energy it receives and the energy that it reflects back to space.

Global Warming and the Greenhouse Effect

The trapping and emission of radiation by the greenhouse gases present in the atmosphere is known as the Greenhouse effect. Without this process, Earth will either be very cold or very hot, which will make life impossible on Earth.

The greenhouse effect is a natural phenomenon. Due to wrong human activities such as clearing forests, burning fossil fuels, releasing industrial gas in the atmosphere, etc., the emission of greenhouse gases is increasing.

Thus, this has, in turn, resulted in global warming . We can see the effects due to these like extreme droughts, floods, hurricanes, landslides, rise in sea levels, etc. Global warming is adversely affecting our biodiversity, ecosystem and the life of the people. Also, the Himalayan glaciers are melting due to this.

There are broadly two causes of the greenhouse effect:

I. Natural Causes

• Some components that are present on the Earth naturally produce greenhouse gases. For example, carbon dioxide is present in the oceans, decaying of plants due to forest fires and the manure of some animals produces methane , and nitrogen oxide is present in water and soil.
• Water Vapour raises the temperature by absorbing energy when there is a rise in the humidity.
• Humans and animals breathe oxygen and release carbon dioxide in the atmosphere.

II. Man-made Causes

• Burning of fossil fuels such as oil and coal emits carbon dioxide in the atmosphere which causes an excessive greenhouse effect. Also, while digging a coal mine or an oil well, methane is released from the Earth, which pollutes it.
• Trees with the help of the process of photosynthesis absorb the carbon dioxide and release oxygen. Due to deforestation the carbon dioxide level is continuously increasing. This is also a major cause of the increase in the greenhouse effect.
• In order to get maximum yield, the farmers use artificial nitrogen in their fields. This releases nitrogen oxide in the atmosphere.
• Industries release harmful gases in the atmosphere like methane, carbon dioxide , and fluorine gas. These also enhance global warming.

All the countries of the world are facing the ill effects of global warming. The Government and non-governmental organizations need to take appropriate and concrete measures to control the emission of toxic greenhouse gases. They need to promote the greater use of renewable energy and forestation. Also, it is the duty of every individual to protect the environment and not use such means that harm the atmosphere. It is the need of the hour to protect our environment else that day is not far away when life on Earth will also become difficult.

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Weekly natural gas futures end flat: here's what happened.

The U.S. Energy Department's weekly inventory release showed that natural gas supplies increased more than expected. The bearish inventory numbers, together with signs of production gains, affected natural gas futures, which stayed flat week over week.  Meanwhile, forecasts for higher weather-related demand and a resurgence of LNG exports represent a few bright spots for the fuel. Considering that the space remains highly susceptible to unpredictable weather patterns that impact prices and market stability, at this time we advise investors to snap up Buy-rated stocks like Coterra Energy CTRA and hold onto others like Cheniere Energy LNG.

EIA Reports a Build Larger Than Market Expectations

Stockpiles held in underground storage in the lower 48 states rose 65 billion cubic feet (Bcf) for the week ended Jul 5, above the analyst guidance of a 55 Bcf addition. The increase compared with the five-year (2019-2023) average net injection of 57 Bcf and last year’s growth of also 57 Bcf for the reported week. The latest increase puts total natural gas stocks at 3,199 Bcf, 283 Bcf (9.7%) above the 2023 level and 504 Bcf (18.7%) higher than the five-year average. The total supply of natural gas averaged 108.8 Bcf per day, up 1.1 Bcf per day on a weekly basis, due to higher shipments from Canada and rising dry production. Meanwhile, daily consumption rose to 102.3 Bcf from 98 Bcf in the previous week, primarily on the back of higher consumption for power generation amid hot weather on the East and West Coasts.

Natural Gas Prices Finish Essentially Flat

Natural gas prices trended sideways last week, following the higher-than-expected inventory build. Futures for August delivery ended Friday at $2.33 on the New York Mercantile Exchange, almost unchanged from the previous week’s closing. However, one should not forget that the commodity has been resurgent over the past few months — gaining 47.5% in the second quarter — and wiped out almost all its deficit since the start of this year. Investors should know that natural gas realization has been under pressure from strong production, elevated stockpiles, and tepid weather-related demand. It's worth mentioning that the current inventory levels are well above the year-ago figure and the five-year average. The bearish sentiment surrounding the commodity even prompted shale producers Chesapeake Energy CHK and EQT Corporation EQT to hit the brakes on new drilling. Chesapeake announced a reduction in its drilling rigs to lower volume, with the Appalachian Basin-focused EQT following on. But both these companies have recently started bringing earlier-deferred production back online following the recovery in prices. It appears that the increased output has put renewed pressure on natural gas prices. This is despite predictions of hotter-than-normal weather over the coming weeks.  Meanwhile, a stable demand catalyst in the form of continued strong LNG feed gas deliveries is supporting natural gas. LNG shipments for export from the United States have been elevated of late due to environmental reasons and Europe’s endeavor to move away from its dependence on Russian natural gas supplies due to the war in Ukraine. At the same time, the increase in gas flows due to the full restart of the Freeport LNG export plant in Texas has translated into more of the commodity being loaded onto ships. A heatwave blanketing Southeast Asia has also led to a jump in power demand for air conditioning, increasing exports of the super-chilled fuel.

Final Thoughts

The upshot of all these factors — the natural gas market — despite improving, remains an oversupplied one. It endured a torrid 2023, briefly breaking below the $2 threshold for the first time since 2020. The situation was not much different in early 2024, with the fuel reaching a multi-year low near $1.48 in late March and struggling to sustain a rally over the psychological mark of $2. While natural gas staged quite the turnaround in a matter of weeks, given the favorable temperature and lower production outlook, it has dropped again as producers plan to bring back those volumes. Based on these factors, the space is currently quite unpredictable and spooked by sudden changes in weather and production patterns. As such, investors are advised to continue exercising caution, and preferably buy/hold on to fundamentally strong stocks like Coterra Energy and Cheniere Energy. Coterra Energy: It is an independent upstream operator primarily engaged in the exploration, development and production of natural gas. Headquartered in Houston, TX, the firm owns some 183,000 net acres in the gas-producing Marcellus Shale of the Appalachian Basin. This Zacks Rank #2 (Buy) company churned out an average of 2,262.7 million cubic feet daily from these assets in 2023. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Coterra beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed in the other, the average being 9.8%. Valued at around $20.2 billion, CTRA has risen 6.4% in a year. Cheniere Energy: Being the first company to receive regulatory approval to export LNG from its 2.6 billion cubic feet per day Sabine Pass terminal, Cheniere Energy enjoys a distinct competitive advantage. Cheniere Energy beat the Zacks Consensus Estimate for earnings in two of the last four quarters and missed in the other two. This Zacks Rank #3 (Hold) natural gas exporter has a trailing four-quarter earnings surprise of roughly 58.9%, on average. LNG shares have moved up 15.4% in a year.

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New to Futures?

Weekly options are valuable tools that can help navigate volatility in the natural gas market. Traders are increasingly utilizing these short-tenor options to insulate their portfolios from weather surprises. In the natural gas market, prices are generally more volatile compared to other energy commodities due to the inelasticity of demand and supply. Weekly options are granular, allowing market participants to tailor trading strategies to maneuver sudden changes in weather conditions and storage levels, which can precipitate large price movements. This article illustrates examples of hedging applications of Natural Gas Weekly options .

The unpredictability of the impact of severe weather can present a challenge for traders especially during weather events such as a heat wave, cold snap or hurricane. Fundamentally, weather is the primary factor that impacts natural gas prices in the short run on both the demand and supply sides.  Temperatures drive the heating demand in winter and cooling demand (air conditioning) in the summer, whereas hurricanes or storms can cause shut-ins and supply shocks. 

Chart: Weather events heightened natural gas volatility

Weekly storage plays an important role in balancing demand and supply. Inventories tend to build up during the injection season (April-October) and ebb during withdrawals from November to March. Essentially, any sudden shift in weather conditions could lead to unexpected changes in storage levels, which could subsequently exert pressure on prices amid increasing uncertainty about future supply.

Natural Gas Weekly options have a contract size of 10,000 MMBtu.  The Weekly options expire on the corresponding day of the contract week. For example, a Henry Hub Natural Gas Weekly Friday option terminates on the Friday of the contract week. The short duration provides more flexibility for traders to adjust their portfolios more frequently in response to sudden market events such as unexpected changes in weather conditions or storage levels. This adaptability makes these types of options cost effective and a precise tool in both risk management and executing tactical trading strategies to capitalize on short-term price fluctuations.

1. End-user Hedging Heat Wave

A natural gas end user is concerned about the potential price spike in the summer as cooling demand increases. The trader wants to hedge a directional move of natural gas prices due forecasts for a heat wave in two weeks.

Strategy: Long Weekly Natural Gas call option

Current Henry Hub Natural Gas price: $2.9 per MMBtu

Strike: $3.00 per MMBtu

Premium: $0.05 per MMBtu (reflecting higher implied volatility due to the anticipated event)

Premium paid: $0.05 x 10 contracts = $0.5 per MMBtu

Contract size: 10,000 MMBtu

Total premium paid= $500

After the option expires:

New Henry Hub futures price: $3.1

Intrinsic value of call option: Max ($3.1-$3),0) x 10 = $0.1 MMBtu

P/L= $1000-$500 = $500

2. End-user Hedging Hurricane

During the hurricane season, a natural gas end user is concerned about the potential price spike as a result of supply disruption and shut-ins. The trader wants to hedge a directional move of natural gas prices due to any potential supply shock. The trader can use a long collar (risk reversal)  strategy to hedge against price increase by buying a weekly call option with a higher strike and simultaneously selling a weekly put option with a lower strike. This type of strategy allows to mitigate against a price spike and use the premium from shorting the put option to reduce the hedging cost .

Strategy : Long Weekly Natural Gas collar

§  Long call option with a strike of $3.00

§  Short put option with a strike of $2.80

Call strike: $3.00 per MMBtu

Put strike: $2.8 per MMBtu

Call option premium: $0.05 per MMBtu (reflecting higher implied volatility due to the anticipated event)

Put option premium: $0.04 per MMBtu

Premium paid: $0.05 x 10 contracts x 10,000 MMBtu = $500

Premium received from put: $0.04 x 10 contracts x 10,000 MMBtu = $400

Net cost = $400 – $500 =$100

New Henry Hub Futures price: $3.1

Intrinsic value of call option: Max ($3.1-$3),0) x 10 contracts X 10,000 MMBtu = $1,000 MMBtu

Intrinsic value of put option= Max (0,$2.8-$3.1) expires worthless

P/L= $1000-$100 = $900

1. Producer Hedging Weekly Storage Report

A natural gas producer wants to hedge against price falling in response to the release of the upcoming weekly storage report. The trader can use a bear put spread, which is simultaneously buying weekly put options with higher strike put option and selling lower strike put option. This strategy is cost effective for downside protection since the premium received from selling the put helps offset the cost of buying the put option.

Strategy: Long bear weekly natural gas put spread

§  Long put option with a strike of $3.10

§  Short put option with a strike of $2.90

Current Henry Hub Natural Gas price: $3.1 per MMBtu

Cost for long put $3.1 strike: $0.05 per MMBtu

Premium for short put $2.9 strike: $0.02 per MMBtu

Net premium paid: $0.03 per MMBtu X 10,000 MMBtu= $300

New Henry Hub futures price: $2.9

Intrinsic value of $3.10 put option= Max ($3.1-$2.9,0) X 10,000 MMBtu= $2,000

Intrinsic value of $2.90 put option= Max ($2.9-$2.9,0) expires worthless

P/L=$2000-$300=$1700

All examples in this report are hypothetical interpretations of situations and are used for explanation purposes only. The views in this report reflect solely those of the author and not necessarily those of CME Group or its affiliated institutions. This report and the information herein should not be considered investment advice or the results of actual market experience.

CME Group is the world’s leading derivatives marketplace. The company is comprised of four Designated Contract Markets (DCMs).  Further information on each exchange's rules and product listings can be found by clicking on the links to CME , CBOT , NYMEX and COMEX .

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IMF Working Papers

Gender diversity and corporate resilience to climate change: evidence from greenfield investments.

Author/Editor:

Bihong Huang

Publication Date:

July 19, 2024

Electronic Access:

Free Download . Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

This paper examines the impact of board gender diversity on the performance of firms whose greenfield investments are struck by natural disasters. We find that corporations with more diverse boards are more likely to earn higher net income but less likely to have negative earnings in front of natural disasters. Further analyses indicate that those corporations with more diverse boards invest less in countries vulnerable to climate change but more in countries ready to adapt for climate change. They have lower exposure to environmental policy risks and are more likely to establish dedicated committees to oversee the risks.

Working Paper No. 2024/157

Climate change Environment Gender Gender diversity Labor Natural disasters Wages Women

9798400280719/1018-5941

WPIEA2024157

Please address any questions about this title to [email protected]