- Coordinator, External Affairs
With landowners literally asking thousands of questions every day, it’s important to know where to find the answers. For landowners a great resource is Pennsylvania’s chapter of NARO (National Association of Royalty Owners) which encourages and promotes exploration and production of minerals in the United States while preserving, protecting, advancing and representing the interests and rights of mineral and royalty owners through education, advocacy and assistance.
Recently NARO held its annual meeting in State College, Pennsylvania. Close to 250 people – mostly leased landowners – attended this event, but anyone was allowed to register. The event included an expo area with banks, accountants, lawyers exhibiting professional services. E&P companies and trade associations were also present to answer any technical questions.
During the two day event everyone from Terry Engelder (Geologist, Penn State) to John Felmy (Economist, API) were present to discuss their latest research efforts. Felmy’s presentation in particular caught the attention of most since it reviewed the feasibility of natural gas exportation, a topic of fierce debate. Cabot doesn’t take a stance on exportation since all of its oil & gas are produced domestically and consumed within US markets. However, the economic benefits of exportation are worth discussing, in another post of course – stay tuned.
To cap off the convention, Cabot joined Chesapeake in presenting ANGA’s latest initiative: Growing Natural Gas Demand.
For those unable to attend the conference here is an abridged version of the presentation with commentary for each slide:
Abundance & Price Stability
This new understating of domestic supplies of natural gas coupled with effective development in the important formations like Marcellus has lead to a newprice stability in the market, something not seen for decades.
Still, there are fears that more large-scale utilization, vehicle conversions and exportation of natural gas will cause an increase in price; however, thanks to our abundant supply and ability to ramp up production, we are able to mitigate any price spikes. As you can see from the chart above the price of natural gas is projected to rise consistently over next 3 decades, removing the volatility historically associated with this energy source. Keeping this energy source cheap and competitive.
Natural gas offers a clean, affordable solution to not only help our economy, but also help our nation meet its clean air goals. Greater adoption of this cleaner transportation alternative can significantly improve air quality in communities across the country. This is evident today as the US CO2 footprint has been reduced to 1990 levels, thanks in large part to increase utilization of natural gas.
When comparing the average NG truck to a diesel truck, NGVs offer a 15 percent reduction in carbon dioxide emissions (CO2), over 30 percent fewer real-world nitrogen oxide (NOx) emissions, 100 percent fewer sulfur oxides (SOx) and diesel particulate matter (PM) emissions, and 100 percent less petroleum diesel consumption.
Natural gas vehicles are classified as an inherently low emission vehicles by the EPA. In fact, many light duty natural gas vehicles are so low-emission, they receive carpool lane access comparable to electric vehicles. The Honda Civic Natural Gas is the cleanest internal-combustion vehicle certified by the EPA – a claim no other vehicle with an engine can currently make – and produces fewer smog-forming pollutants than its gasoline counterpart.
NGVs can be used by both consumers and for commercial purposes. Many governments are making the switch as they realize the benefits of cleaner, cheaper natural gas. The Los Angeles Metropolitan Transportation Authority, for example, runs its entire fleet of 2,000 buses on natural gas.
Markets are taking notice of the benefits of natural gas. Natural gas vehicles are the smart solution to powering fleets of all sizes, including heavy duty vehicles. Natural gas vehicles offer the same power as a diesel vehicle but with less noise, lower fuel costs and less emissions.
Natural gas is also an inherently cleaner fuel that offers lower emissions when used to fuel our transportation demands. Due to an abundance of supply, natural gas is an affordable fuel that can help businesses of all sizes keep their fleet fuel costs low. And as you can see here, offer significant savings at the pump.
There’s work to be done to increase the number of refueling stations and the number of NGVs on the road to make this savings accessible, but we see this area as another benefit to communities as the use of natural gas increases.
Natural gas vehicles are not a new thing in the U.S. In fact, as the picture details above, many different organizations have made the transition to NGV’s already. Some as far back as two decades ago.
The United States accounts for less than 1% of all the NGVs in the world. In fact, countries all over the world including third-world countries utilize NGVs. The image above is a simple representation of the numerous vehicle categories already capable of running on natural gas.
The rest of this presentation will be presented next week in a follow up post. Thank you!