The shift to natural gas and electricity as replacements for gasoline in transportation would greatly increase natural gas demand, according to Ty Harrison, Societe Generale Energy’s chief strategist, speaking at the opening of the LDC Gas Forum: Rockies & West conference Tuesday in Los Angeles.

As part of an industry overview that showed supply and infrastructure outpacing demand for gas in North America, Harrison cited a number of possible things that could boost demand, and alternative transportation fueling is one of them — whether it is gas used directly as compressed natural gas (CNG) and liquefied natural gas (LNG), or gas used to generate more electricity to power a massive shift to electric vehicles (EV).

Harrison thinks a gasoline-dominated transportation sector is unsustainable longer term, and as such, natural gas is a logical key player in the transition away from gasoline. He does not think nuclear, coal or hydrogen will be viable options, based on the current political and economic environment.

In response to a question, Harrison said gas certainly could increase demand with a big shift to EVs as is contemplated by some local communities and utilities around the United States and in Europe particularly.

“In the next decade on a global scale technology has to evolve to have other fuel sources power the transportation sector,” Harrison said. “The math just doesn’t work where billions and billions of people are involved with a finite energy source. In my opinion, if the transition is orderly in the transportation sector, we will move away from gasoline.

“Whether it’s EVs or CNG vehicles, both ultimately drive gas demand higher, particularly if you look at the electric sector and if EVs and battery developments take off. Ultimately there are limitations on how much additional power supplies can come from renewables, so you’re left with coal or gas [as a generation source] and in today’s market, I think natural gas will carry a large share of that generation.”

He noted that in the recent global turnaround on gas prices, the United States suddenly is the cheapest source of natural gas in the industrialized world, and that can boost the use of CNG or LNG directly in transportation, along with fueling a resurgence of industrial gas demand.

“In various ways, natural gas is looking for ways to service that transportation sector, which is still dominated by crude,” Harrison said.

©Copyright 2011Intelligence Press Inc. All rights reserved. The preceding news reportmay not be republished or redistributed, in whole or in part, in anyform, without prior written consent of Intelligence Press, Inc.