Advantages

Contrary to some previous reports, natural gas offers greenhouse gas (GHG) emissions advantages compared with coal-fired power generation, according to a recent study by Worldwatch Institute and Deutsche Bank Climate Change Advisors. Earlier this year the U.S. Environmental Protection Agency updated its methodology for estimating methane (CH4) emissions from natural gas systems, but gas-fired generation still releases 47% less GHGs than coal from source to use, the researchers said. A controversial study by Cornell University earlier this year reported that CH4 leaks were a particular concern for gas produced from shale formations using hydraulic fracturing (see Shale Daily, April 13). But even counting higher estimated emissions of CH4 from shale gas production activities, gas-fired power generation still beats coal-fired power by a wide margin when it comes to overall GHG emissions, according to a subsequent study published by the gas-friendly American Clean Skies Foundation (see Shale Daily, April 21). IHS Cambridge Energy Research Associates in August said GHG emissions from shale gas production likely are “significantly overstated” (see Shale Daily, Aug. 25). Another recent study by the National Center for Atmospheric Research found that burning natural gas emits “far less” carbon dioxide than coal but even so, more reliance on gas won’t significantly slow climate change.

The boom in natural gas shale exploration and production (E&P) is fueling “significant cost advantages” for North America’s commodity chemicals producers because the costs of gas and oil-based feedstocks remain far apart, according to a report by Fitch Ratings.

The rich gas corridor of the Marcellus Shale is attracting producers even at low natural gas prices, but while most natural gas liquids (NGL) command a premium in the Northeast, the lack of ethane markets in the region is a challenge, according to several industry players.

Encana Corp. CEO Randy Eresman on Thursday joined a growing chorus of professionals who are urging the natural gas industry to champion the advantages of using gas not only for more power plants but also as transportation fuel.

Encana Corp. CEO Randy Eresman on Thursday joined a growing chorus of professionals who are urging the natural gas industry to champion the advantages of using gas not only for more power plants but also as transportation fuel.

In a draft energy plan released Monday, New York Gov. David Paterson said his state would encourage production of conventional and shale natural gas to reduce its dependence on out-of-state resources.

Sempra Energy CEO Don Felsinger said Tuesday California offers several regulatory advantages to utilities, such as Sempra’s two in Southern California — rates not dependent on ever-increasing sales volumes, and return on equity (ROE) that is relatively generous.

At least one major independent power producer in California takes a skeptical view about the potential price and reliabiliity advantages that introduction of liquefied natural gas (LNG) imports on the West Coast will have on the wholesale gas and power sectors. NRG Energy Inc. thinks LNG will have minimal impact.

Chicago Mercantile Exchange Holdings Inc. (CME) Tuesday said it will meet with shareholders of CBOT Holdings Inc. and members of the Chicago Board of Trade to reiterate the advantages of its proposed merger with CBOT and provide its views on the unsolicited proposal made by IntercontinentalExchange (ICE) to CBOT shareholders last week (see Daily GPI, March 16).