Natural Gas Is the Talk of Conference

The message for natural gas came through loud and clear at the IHS CERAWeek 2010 conference that said natural gas has a bright future in building better energy. Although the conference addresses varying forms of energy, speakers and attendees found themselves talking up natural gas because it is cheaper, more flexible and plentiful.

Changing the Energy Game

As recent as 2007, the industry thought natural gas didn't stand a chance because there wasn't enough supply. With the recent surplus, that's no longer an issue. Natural gas potential has tripled in the last three years in North American according to an IHS Cambridge Energy Research Associates report. The report also states by 2035, gas from shale formations will account for half of the U.S. supply.

The Obama administration praised renewable energy while oil and gas industry leaders say it's dangerous to rely too much on renewables because current wind and solar power technologies can't support large populations. Despite that, White House economic adviser Lawrence Summers has said that energy policy must not only include renewable energy sources, but also fossil fuels and nuclear power in the country's quest to reduce greenhouse gas emissions and U.S. dependency on foreign oil.

Natural Gas Advantage

Natural gas offers many advantages beyond burning 50 percent cleaner than coal. Because natural gas is available in North America, the U.S. could lower foreign oil dependence and stop paying defense surtax as well as create many new jobs. Furthermore, technology has advanced enough to release natural gas from shale faster and cheaper and it may see more technology game changers. One possibility involves a fuel cell converting natural gas or grass into electricity. Another possibility is that technology could convert coal-burning CO2 into concrete.

However, the oil and gas industry still contends with the concerns surrounding hydraulic fracturing. Some environmentalists say the process for tapping shale rock also known as fracking is poisoning drinking water. The oil and gas industry is working to address these concerns. As soon as the industry resolves the concerns, it can charge ahead.