How can we make natural gas more available bearing in mind cost, environmental and local concerns?

Natural gas is seen by many as 'the next prize', with gas demand expected to grow faster than other fuels such as oil and coal. Natural Gas has clean-burning properties, lower greenhouse gas emissions and lower capital costs associated with developing power generation when compared with alternatives such as coal or nuclear. Its environmental benefits and abundance make it the fuel of choice for many governments and corporations striving to meet Kyoto Protocol obligations, regulatory requirements, or other public commitments. While ultimately natural gas will not “solve” the environmental and geopolitical challenges associated with fossil fuels, it represents part of the solution for a transition from the petroleum age to the era of clean energy. But recent price spikes in the US and Europe have caused many people to ask whether natural gas can be considered a reliable component of world energy supply.

Today one of the greatest challenges facing the natural gas industry is that the largest natural gas reserves are not located near the consuming markets. We are seeing an increase in the development of infrastructure to support liquefied natural gas (LNG)—a process of liquefying or condensing the gas for transport in ships. However, some large consuming markets face difficulties in siting LNG receiving terminals. The United States, in particular, is experiencing difficulty due to local concerns that LNG plants are vulnerable to terrorist attack or accidents that would put local residents’ safety at risk. While most Americans understand the benefits of natural gas as a substantial component of the country’s energy mix, when it comes to locating a plant nearby, local or personal considerations usually supersede national need.

And natural gas is not without environmental impacts. Burning natural gas still generates air pollutants and carbon dioxide, though at much lower levels than other fossil fuels. Exploring for and producing natural gas requires drilling wells, just as with oil, which means clearing land (onshore) or erecting platforms (offshore) for wells, pipelines and itinerant activities. Deforestation, biodiversity loss, and land or water contamination remain potential impacts. This is why the United States and other countries have not opened many of their wilderness areas to natural gas exploration and production.

So how do we expand the availability of natural gas in a way which is cost competitive, respects community and environmental concerns?

• Should governments provide incentives for businesses to use natural gas?
• Will establishing limits on greenhouse gas emissions drive the transition from other fossil fuels to natural gas?
• How can natural gas suppliers increase the acceptability of LNG plants to expand the availability of imported LNG?
• What regulatory and commercial conditions are required to bring more natural gas to market more quickly?
• What countries have effective natural gas policies and what can we learn from them?