The Energy Blog

FYI: Marcellus Black Shale Natural Gas Reservoir Could Dramatically Boost U.S. Production

Natural gas distributed throughout the Marcellus black shale in northern Appalachia could conservatively boost proven U.S. reserves by trillions of cubic feet if gas production companies employ horizontal drilling techniques, according to a Penn State and State University of New York, Fredonia, team. . . .

Terry Engelder, professor of geosciences, at Penn State, working with Gary Lash, professor of geoscience, SUNY Fredonia, has conservatively estimated that the Marcellus shale contains 168 trillion cubic feet of natural gas in place and optimistically suggests that the amounts could be as high as 516 trillion cubic feet. . . .

The U.S. currently produces roughly 30 trillion cubic feet of gas a year, and these numbers are dropping. According to Engelder, the technology exists to recover 50 trillion cubic feet of gas from the Marcellus, thus keeping the U.S. production up. If this recovery is realized, the Marcellus reservoir would be considered a Super Giant gas field. . . . more

Crude Reserves in US Decline, Natural Gas Reserves Increase

U.S. crude oil proved reserves declined 4 percent in 2006, while natural gas reserves increased by 3% according to estimates released by the Energy Information Administration

The Gulf of Mexico Federal Offshore and Alaska, two of the largest oil producing areas, respectively reported 10 and 7 percent declines in crude oil proved reserves. This was due to downward revisions and fewer new discoveries. Utah reported the largest increase in crude oil proved reserves, adding 78 million barrels (a 30 percent increase from 2005), followed by Colorado and New Mexico. 

Domestic crude oil production declined 5 percent in 2006 due mostly to lower production in Alaska. Part of the decline resulted from an August 2006 shut-in of producing wells in half of the Prudhoe Bay Field for inspection and repair of corrosion in the gathering system. For the second year in a row Montana had the largest annual oil production increase of any state (6 million barrels; a 20 percent increase) owing to continued development of the Bakken Formation in the Elm Coulee Field. This relatively new and important oil field is difficult to produce and requires cutting-edge technology for economic production.

U.S. natural gas proved reserves increased 3 percent in 2006, rising to over 211 trillion cubic feet, the highest level since 1976. Additions to reserves replaced 136 percent of the dry natural gas produced in 2006. This was the eighth year in a row that U.S. natural gas proved reserves have increased.

Total U.S. natural gas production increased in 2006 due to production increases in Texas (Barnett Shale), Louisiana, and the Rocky Mountain states (Colorado, Wyoming, Utah, and Montana). Gulf of Mexico natural gas production declined the most with a 6 percent drop.

Advance Summary: U.S. Crude Oil, Natural Gas, and Natural Gas Liquids Reserves 2006 Annual Report is available on the EIA Internet site at:
http://www.eia.doe.gov/pub/oil_gas/natural_gas/data_publications/advanced_summary/current/adsum.pdf

Anerobic Microoganisms Produce Methane

LUCA Technologies, Golden, Colorado, has discovered that many hydrocarbon deposits such as coal beds, organic-rich shales and oil fields currently are, or have potential to produce large amounts of methane, using naturally occurring populations of anaerobic microorganisms, on an ongoing, real-time basis. In the absence of atmospheric oxygen, these underground communities of organisms feed on the complex organic molecules that make up the coal or oil, yielding methane as a metabolic byproduct.

Luca has identified 46 years of gas supply, at 23 TCFY (approx. current U.S. consumption rate), that could be produced using anaerobic microorganisms, assuming 1% of the substrate is converted to methane.

LUCA has coined the term "Geobioreactors" to refer to these large, naturally occurring bioreactors (containers in which microorganisms are used to perform chemical reactions), and to differentiate them from the human-engineered conversion of plant materials into methane that is currently done on a small scale.

Through a series of controlled laboratory experiments, LUCA has shown that coal samples extracted from a number of suspected Geobioreactors will produce methane on an on-going basis. Moreover, this methane production can be stimulated by the introduction of additional nutrient compounds, or suppressed by heat sterilization or the introduction of oxygen, both of which will kill anaerobic organisms.

The biogenic creation of methane from a higher molecular weight hydrocarbon source is a multi-step process, most likely accomplished by a consortium of microorganisms acting together in a symbiotic fashion. Through a series of steps, various organisms in the consortium breakdown the large hydrocarbon molecules in coal or oil into intermediate, water-soluble compounds, which are then reduced to even smaller hydrocarbon molecules, and finally metabolized into methane by a group of organisms known as methanogens.

Natural Gas Civic Beats Prius

(HealthNewsDigest.com) - Honda’s natural gas Civic GX, which debuted in 2006 in California but is now becoming available in other parts of the country, just may be the cleanest mainstream car on the road. At least the American Council for an Energy-Efficient Economy (ACEEE) thinks so. The nonprofit group . . . put the Civic GX at the top of its 2007 environmentally friendly car list, edging out Toyota’s hybrid Prius.

The natural gas-fueled Civic scored slightly better than the Prius on fuel economy and reduced emissions in ACEEE’s battery of tests. It also scored better in terms of the pollution generated in the manufacturing processes. . . . continued

The lack of fueling stations and limited range (220 miles) are the main disadvantages of the Civic.

Corncob Derived Briquettes for Lower Pressure Natural Gas Storage

Using corncob waste as a starting material, researchers at University of Missouri-Columbia (MU) and Midwest Research Institute (MRI) in Kansas City have created carbon briquettes with complex nanopores capable of storing natural gas at an unprecedented density of 180 times their own volume and at one seventh the pressure of conventional natural gas tanks. The technology has been incorporated into a test bed installed on a pickup truck used regularly by the Kansas City Office of Environmental Quality.

"We are very excited about this breakthrough because it may lead to a flat and compact tank that would fit under the floor of a passenger car, similar to current gasoline tanks," said principal project leader Peter Pfeifer of MU. "Such a technology would make natural gas a widely attractive alternative fuel for everyone."

According to Pfeifer, the absence of such a flatbed tank has been the principal reason why natural gas, which costs significantly less than gasoline and diesel and burns more cleanly, is not yet widely used as a fuel for vehicles.

UK Wind & Gas Project: First of Kind

On Feb. 8 Eclipse Energy UK plc (‘Eclipse’) announced that it has been granted consent to construct and operate a unique dual energy scheme, the Ormonde offshore wind farm and to generate and export electricity from the adjacent Ormonde Gas Fields development by the UK Government. This completes the series of principal permissions necessary to construct the world’s first co-development of offshore gas and wind energy, in the East Irish Sea offshore from Lancaster.

When constructed Ormonde is expected to have the ability to provide up to 200MW of electricity from its gas turbines fueled by two natural gas fields and dedicated offshore wind farm of 30 turbines. The Ormonde project will be able to supply the equivalent of three-quarters of Cumbria’s domestic load generating enough electricity to power over 155,000 homes, the equivalent of which 71,000 would be powered by renewable energy, it will also save up to 286,000 tons of CO2 per year. The project anticipates first energy in 2009.

Ormonde Project Facts
	Wind	Natural Gas
Revenue Split	80%	20%
Installed Capacity	108MW	93MW
Generated Electricity	59%	41%

India to Have Natural Gas surplus in Two Years

As reported in the Asia times: A report by India's Ministry of Petroleum has said that the country will possess surplus natural gas in the next two years and its rapidly growing economy is likely to be fueled by it after major discoveries by state-run and private energy companies. Currently, India meets 70% of its energy requirements through imports.

"The major natural-gas recoveries off the east coast and aggressive acquisition of oil and gas blocks overseas might make India a gas-surplus country in another two years, and the natural fuel is all set to replace the country's agrarian-based economy," said the report. "The planned cross-country gas pipeline and city gas-distribution networks will go a long way towards influencing India's economy." ... more

If this proves to be true it could have a stabilizing effect on the cost of gas and oil supplies in the rest if the world.

New Stimulation Technology Improves Gas Production

Halliburton has added a breakthrough stimulation technology, GasPerm 1000(SM) service, which helps improve production from unconventional reservoirs including tight gas, shales and coalbed methane. Based on a newly developed microemulsion surfactant, the service helps remove water drawn into the formation during the fracturing process. Removing the water can improve permeability to gas at the fracture face and help increase gas production. In addition the service represents a safety and environmental advancement, replacing methanol in many applications.

In the fracturing process, water can be drawn (imbibed) into the formation from the fluid used to create the fracture. The water drawn into the pore spaces is held there by capillary pressure and surface tension and can block gases from flowing into the wellbore. Commonly called "water block," this process is especially pronounced in unconventional gas reservoirs where the lower permeability results in increased capillary pressure.

The service has been shown to enable the imbibed liquids to be expelled from the rock matrix and fracture system, thereby enabling improved gas production.

World’s first CNG ship approved for construction

Sea NG Corporation (www.coselle.com) announced that the American Bureau of Shipping ("ABS") has approved for construction its Coselle compressed natural gas ("CNG") ship. This is the first ship and cargo system in the world for the transport of CNG to be so approved by ABS or any other international marine classification society.

Coselle CNG ships will be deployed to carry moderate volumes of natural gas (30 to 500 mmscf) over medium distances (200 to 2,000 km), a segment of the marine gas transportation market that has not been economically served by pipelines or liquefied natural gas.

Cost Comparisons for New Power Plants

Stone & Webster Management Consultants has prepared life-cycle cost calculations for most of the technologies likely to be used in new power plants.  Calculations were made for the following types of plants:

• Subcritical and supercritical pulverized coal,
• Circulating fluidized bed (CFB),
• Integrated gasification combined-cycle (IGCC),
• GE advanced boiling water reactor (ABWR),
• South African pebble bed modular reactor (PBMR) and
• Gas fired combined cycle power plants. 

The paper, presented at POWER-GEN International in Los Vegas in early December, presents a consistent comparison of the economics and risks of representative designs that are being considered in the power marketplace for projects requiring investments of $1 billion or more.

A brief description of each type of power plant and a list of assumptions, too long to go into here, are given.  Results of the calculations are presented in graphic form for total capital investment in dollars and dollars per kW, levelized production costs (cost of electricity produced) and a comparison of costs for coal plants with and without sequestration. 

The Changing Energy Market

I thought it would be interesting to share the view point of the CEO of one of the worlds largest oil companies on the future of energy.  On 27 February 2006, Lord Browne, BP's Group Chief Executive, delivered a speech "The changing energy market."  The following are a few brief excerpts from the speech.  It is suggested that you read the whole speech to totally understand his perspective.

.... So let me offer you four facts, and one conclusion.

The first and most fundamental fact is that the demand for energy continues to increase, driven by population growth and by the gradual spread of prosperity.

Over the last twenty four hours, the world’s population has risen by almost a quarter of million – as it does every day, week in, week out. 10,000 new citizens every hour. ....

The second fact is that the United States, Europe, Japan and now China and India, are all significant importers - of both oil and natural gas.

And in each case the requirement for imports is likely to grow.

The forecast for ten years from now is that, worldwide, 70 per cent of total oil consumption and 40 per cent of all natural gas demand will be supplied through trade.

Wind Power Plus Stored Energy

The Iowa Stored Energy Plant (ISEP) will be the first plant in the world that will use energy from a wind farm plus supplemental off peak electricity to produce compressed air to be stored in an underground aquifer until it is need to produce electricity on demand.  When demand for electricity is high, the air will be released and used in combination with a small amount of natural gas to drive combustion turbines to generate electricity.  Wind power is undependable and not always available when needed, compressed air energy storage (CAES) mitigates this intermittency.  This method will save one-third to one-half the natural gas that would otherwise be needed. CAES has been used in Alabama and Germany, but at these locations the energy for storage does not come from wind.

A separate section of the underground aquifer will also be used for storing natural gas. Gas storage will allow the facility and other gas utilities to buy natural gas when prices are lower. This type of gas storage is widely used in the U.S.

Qatar-Worlds Largest LNG Refinery

Qatar Petroleum and ExxonMobil have launched a project to build what will be the worlds largest liquefied natural gas (LNG) refinery.  Under a 25 yr agreement, starting in 2008 the U.S. will import 25-30% of its LNG needs from Qatar.  In the first part of this phase of the project, to be completed in the second half of 2008, train 6 of the RasGas-3 plant will produce 7.8 million tons a year (MTA) of LNG.  The second part, train 7, with the same capacity, will start up approximately a year later. The current phase is expected to cost about $14 billion when all the auxillary equipment is included.

Train 3 with a capacity of 4.7 MTA is in operation. Train 4 and 5, each with the same capacity as train 3 are under construction. Train 4 is scheduled to start up in the 4th quarter of 2005 and train 5 late in 2007. Trains 6 and 7 with a capacity of 15.8 MTA, together with trains 1-5, with a combined capacity of 16 MTA, represent a big step forward for the State of Qatar to become the world's largest supplier of LNG with expected total annual production of 77 million tons by 2010.

Twenty-eight wells are planned to be drilled to supply the two trains with natural gas, sourced from Qatar's giant North Field. The field has proven reserves of more than 900 trillion cubic feet (25 trillion cubic meters) of natural gas, the third largest in the world. Qatar Petroleum has a 70-percent stake in the project and ExxonMobil Ras Laffan III Limited the remaining 30 percent.

To deliver the LNG to its targeted markets, RasGas-3 plans to lease 12 LNG tankers to support Train 6.  It has contracted with Teekay Shipping Corporation to lease, for 25 years commencing in 2008, four 217,000 cubic meter LNG carriers.  Teekay in turn has contracted with Samsung Heavy Industries to construct the carriers for a total price of approximately $1 billion.  Hyundai Heavy Industries and Daewoo Shipbuilding & Marine Engineering and will also supply tankers.  It is expected that an additional six LNG tankers will be required to support Train 7.

Resources:

"ExxonMobil and Qatar Petroleum Progress LNG Project", Qatar Petroleum press release, Nov. 15, 2005
Qatar Patroleum--RasGas Companies, website
"Technip, Chiyoda JV Sign Multi-billion US$ LNG Contract in Qatar", Contractoors Unlimited, Sept., 9,2005
"Teekay Awarded Four Long-Term LNG Contracts", Teekay Shipping Corporation press release, August 2, 2005

More blogs about natural gas, LNG, fossil fuels, energy

Natural Gas Resources

Natural gas is projected to be the fastest growing component of world primary energy consumption in the EIA International Energy Outlook 2005.  Consumption of natural gas worldwide is projected to increase by an average of 2.3 percent annually from 2002 to 2025, compared with projected annual growth rates of 1.9 percent for oil consumption and 2.0 percent for coal consumption.  From 2002 to 2025, consumption of natural gas is projected to increase by almost 70 percent, from 92 trillion cubic feet to 156 trillion cubic feet. In 2004 world consumption of natural gas increased by 3.3% compared to the ten year average of 2.3%. This makes the EIA forecast sound a little conservative, but that depends on whether supplies can be developed to meet a higher demand.

Natural gas prices have gone up considerably recently and are expected to remain at or above present prices for the foreseeable future.  The EIA short term energy outlook released Oct. 12, 2005 forecasts an average U.S. residential natural gas price of $12.93 per thousand cubic feet.  This compares to $10.74 for 2004 and $9.51 for 2003.  The forecast for 2006 is $15.25.  These price increases have been exacerbated by hurricanes Katrina and Rita, reflecting the sensitivity of prices to changes in supply and the price movements required to restore a balance between supply and demand.  The report states that "Complete recovery of energy infrastructure from hurricane damage will take many months. However, considerable recovery should occur by the end of 2005."  Incidental the same report forecasts the 2006 average price of West Texas crude to be $64-$65 per barrel and the price of gasoline to be $2.45.

The following table presents some of the more pertinent data for our natural gas resources.  It gives data on reserves, production and consumption of natural gas at the end of 2004.  Beyond the first six countries listed only the countries with production above 40 billion cubic meters are listed.  The table is sorted by rank in reserves.  All data was taken from the BP Statistical Review for 2004.   Several conclusions are fairly obvious from inspection of the data (combined with some data from the complete report.)    Discussion of these conclusions follows the table.  Not shown are the worlds reserves of 179,530,000 billion cubic meters with an annual production and consumption of 2,690,000 billion cubic meters for an R/P of 67.

NATURAL GAS DATA FOR 2004

Rank	Location	Proven Re-serves	Share of Total	2004 Produc-tion	Change over 2003	Con-sump-tion	R/P ratio
		Billion  cubic meters	%	Billion cubic meters	%	Billion cubic meters
1	Russian Federation	48,000	26.70%	589.1	1.80%	402.1	81.5
2	Iran	27,500	15.30%	85.5	4.90%	87.1	321.6
3	Qatar	25,780	14.40%	39.2	6.70%	15.1	657.7
4	Saudi Arabia	6,750	3.80%	64.0	6.60%	64.0	105.5
5	United Arab Emirates	6,060	3.40%	45.8	2.20%	39.6	132.3
6	United States	5,290	2.90%	542.9	-1.20%	646.7	9.8
Other	leading producers
8	Algeria	4,550	0.90%	82.0	-1.00%	21.2	55.4
12	Turkmenistan	2,900	0.30%	54.6	-0.90%	15.5	53.1
13	Indonesia	2,560	2.50%	73.3	0.70%	33.7	34.9
14	Malaysia	2,460	1.30%	53.9	4.00%	33.2	45.7
15	Netherlands	2,390	1.40%	68.8	17.90%	43.5	21.7
16	Norway	2,390	1.40%	78.5	7.30%	4.6	30.4
17	China	2,230	0.80%	40.8	18.50%	39.0	54.7
18	Uzbekistan	1,860	1.00%	55.8	4.10%	49.3	33.3
19	Canada	1,600	1.60%	182.8	-	89.5	8.8
27	Argentina	610	0.30%	44.9	9.40%	37.9	13.5
28	United Kingdom	590	1.20%	95.9	-6.70%	98.0	6.1

Natural Gas Power Plant Converts to Renewable Energy

A natural gas fired cogeneration power plant in New York state is being converted to run exclusively on a renewable source.  Work has started to convert the 7 MW Laidlaw Energy Group plant so that it can run on wood chips to supply of electricity to the national grid as well as supplying heat and power to operate an on-site hardwood lumber dry kiln.

Aided by a $1m grant from the New York State Energy Research and Development Authority, Laidlaw has completed the design and engineering for the project, procured the requisite equipment and entered into an agreement that provides for the fixed price construction of the project. The facility is expected to resume commercial operations midway through next year.

Is this a great sign of the times!  Natural gas is just too expensive and too scarce to be used for power generation.

Technorati tag: natural gas

The US Energy Bill of 2005

The US energy bill of 2005 has received a mixed bag of reviews depending on your interests.  The folowing are the portions of the energy bill that appear to be most relevant to the topics I discuss:

A two-year extension of a tax credit to companies that produce power from renewable sources — an allocation worth $2.7 billion. The bulk of those funds will promote the construction of new wind farms, a boon to utilities and wind turbine manufacturers, while the remainder will assist biomass, geothermal and hydroelectric companies.

Biofuels : A 7.5 billion gallon Renewable Fuels Standard (RFS) which would add billions of gallons of ethanol, biodiesel and other renewables to the nations fuel supply by 2012.  In addition to the RFS, the bill updates the small ethanol producer definition to 60 million gallons, extends the biodiesel tax credit through 2008, and establishes a 30% tax credit up to $30,000 for the cost of installing clean fuel refueling equipment, such as an E85 fuel pump.

Solar : Increases the permanent 10 percent business energy credit for solar to 30% for two years.   Eligible technologies include photovoltaics, solar water heaters, concentrating solar power, and solar hybrid lighting. The credit reverts back to the permanent 10 percent level after two years. The bill establishes a 30 percent residential energy credit for solar for two years.   For residential systems, the tax credit is capped at $2,000.

Geothermal, Wind: The bill continues to include geothermal energy in the Section 45 Production Tax Credit (PTC) for the full 1.9 cent/kwhr credit amount, but expands the credit period from five to the full ten years. As a result, geothermal and wind will now receive equal tax treatment -- the full ten-year, 1.9 cent production tax amount. Other technologies, such as open loop biomass, receive the full ten-year credit but for half the credit amount, or 0.95 cents/kwhr. The biggest clean energy perk in the bill was a two-year extension of a tax credit critical to companies that produce power from renewable sources -- an allocation worth $2.7 billion. The bulk of those funds will promote the construction of new wind farms, a boon to utilities and wind turbine manufacturers, while the remainder will assist biomass, geothermal and hydroelectric companies.

Direct users of geothermal energy may use a simpler procedure for leasing, or establishing a fee schedule instead of royalties payments. State and local governments are allowed to use geothermal resources for public purposes at a nominal charge.

Hybrid, fuel efficient vehicles: Close to $875 million in tax credits could be given to those who buy hybrid gas-electric vehicles before 2010.  The bill favors companies that are just getting into the hybrid business. Each manufacturer can apply the tax credit to just 60,000 vehicles.  Toyota sells roughly 150,000 hybrids per year and Honda 50,000 which means that a only a portion of their vehicles will be eligible for credits. The bill fails to include any provision for new fuel efficiency standards.

A new category of tax credits known as clean renewable energy bonds, or CREBs, that have an estimated value of $400 million. These tax-exempt bonds can be issued by local governments or electricity cooperatives to help pay for wind, solar, biomass and other specified projects.  An additional $194 million will go toward the two-year extension of excise- and income-tax credits for manufacturers of biodiesel, a soybean derivative that is blended with regular diesel.

Bush's Comments on Energy

The following are excerpts from President Bush's June 15th remarks to the 16th Annual Energy Efficiency Forum

The primary cause of rising gasoline prices is that the global demand for oil is growing faster than global supply....The first step toward making America less dependent on foreign oil is to improve conservation and efficiency....Hybrid vehicles are one of the most promising technologies immediately available to consumers....I propose that every American who purchases a hybrid vehicle receive a tax credit of up to $4,000....We are also encouraging automakers to produce a new generation of modern, clean-diesel cars and trucks.... Congress should extend the tax incentives for the purchase of hybrid vehicles to clean diesel cars and trucks....the Environmental Protection Agency is working to simplify rules and regulations for refinery expansion....my administration launched an ambitious program called the Hydrogen Fuel Initiative. The energy bill will authorize additional funds for this vital initiative. With bold investments now, we can begin to replace a hydrocarbon economy with a hydrogen economy....We've got to be aggressive about finding alternative sources of fuel. And one such source is ethanol....I like the idea of spending money on research to make ethanol more feasible....we can get the same type of alternative fuel from soybeans. It's called biodiesel....To encourage greater use of ethanol and biodiesel, my administration supports a flexible, cost-effective renewable fuel standard.... This proposal would require fuel producers to include a certain percentage of ethanol and biodiesel in their fuel. I proposed $84 million in the 2006 budget for ongoing research into advanced technologies that can produce ethanol from farms, forests, or even municipal waste dumps.... the Department of Energy is funding research and development of super-conducting power lines. It's important research because it will enable us to more efficiently move electricity....One day, technologies like solar panels and high-efficiency appliances and advanced insulation could even allow us to build "zero-energy homes" that produce as much energy as they consume....My budget for 2006 brings clean coal funding to $1.6 billion over five years....Congress needs to pass the Clear Skies Initiative....passing it, not only will we clean the environment, but it will result in tens of billions of dollars in clean coal investments by private companies....to further increase our natural gas supply, Congress needs to make clear federal authority to choose sites for new receiving terminals for liquefied natural gas....We need to expand our nation's use of nuclear power....So I've directed the Department of Energy to work with Congress to help pass legislation that will reduce uncertainty in the nuclear plant licensing process....such as federal insurance to protect the builders of the first four new plants against lawsuits, bureaucratic obstacles, and other delays beyond their control.

In general I support these ideas.  However (my cynical side), I don't think these remarks have much to do with what actually gets enacted into law.  It is good too see that the president acknowledges that demand rather than supply is driving our pending energy shortage.  His emphasis on hybrid cars is encouraging.  $84 million for research on alternative fuels seems like such a pittance compared to the billions on the hydrogen initiative and the clean coal program. I know that his remarks on coal and nuclear energy will be controversial, but I believe that we have no choice but to go ahead with these programs.  The clean coal program, which includes sequestration, is the one sure thing we have to fall back on.  The environmental issues associated with coal mining are probably not addressed and could and should be.  Building four nuclear power plants (I thought it was to be three) is essential to demonstrate that safer nuclear plants can be built.  I personally think that a fuel recycling program should be initiated to take care of our mounting nuclear wastes, rather than using the Yucca Mountain storage scheme.  If the hydrogen economy ever becomes a reality (I hope not) our coal reserves will deplete rapidly and nuclear may be our only option.  Development of a massive renewable fuels program would be a much wiser use of our tax dollars.

Technocrati tags: energy policy, renewable energy

Unlimited Inexpensive Natural Gas Substitute

Inexpensive synthetic natural gas (syngas) from coal or biomass is claimed by Syngas Energy.  Fairchild International Corporation announced on May 16, 2005 that its Canadian subsidiary, Syngas Energy Company, had completed development of its low cost syngas production technology.  They reported that their prototype model had completed tests using a number of inputs including low-grade coal, wood waste and other biomass, yielding superior results with lower costs and emissions than currently available technology.  The process produces pipeline quality synthetic natural gas as a replacement for depleting natural gas and oil resources.  The technology produces syngas cheaper than the current cost of processing gas. The same unit can be used to produce gas from almost any type of carbon based input with low or negligible emissions or other pollutants and less than 1/2 the CO2 of other processes.

This could be a breakthrough in gasification technology if all their claims are true.  We all have seen overly optimistic announcements at this stage of development, lets hope this one works out. No information as to how their process differs from other gasification processes was given.  Neither the press release nor their website stated the BTU content of their syngas, specifics about the purity of their syngas, the capacity of their modular unit or any specific plans for production.

Follow the Money

As reported in the April 24 Washington Post, the largest energy deal in history was a $12.8 billion joint venture announced in February between state-owned Qatargas and oil majors Exxon Mobil and Total.  A single $7 billion plant to be built by Exxon Mobil to turn natural gas into diesel (GTL) is the largest investment ever by America's largest company.  Other companies are investing more billions into Qatar's natural gas resources.  According to some economists, per capita income in Qatar will be the highest in the world.

While this is not earth-shaking news to most, it make the point very well -- big oil is interested in doing what they know best.  Tar sands, heavy oil, renewables, etc do not have the ROI of natural gas and more conventional oil projects as long as their is something more profitable to do.  The gas to oil facility uses fairly new technology (maybe not really, but it is new to big oil), but it has been well researched and working with a clean feedstock, like natural gas, is far easier than gasification and liquefaction of biomass or even coal.  They will and perhaps they should (from their investors point of view) follow this road.  It is up to governments to develop and demonstrate emerging technologies.  Since the U.S. government does not seem to believe that we have as an urgent need, it is up to us to convince them that oil is running out soon and that we need to be working much harder to mitigate the coming crises.  I have a minority belief that big oil does not have a much greater influence on the federal government than most other lobbyists do, rather it is not politically wise for the administration to solve any problems that are not immediately threatening. As long as EIA maintains that we do not have an immediate problem, they can hide their heads in the sands and ignore any other sources of information, including Bush's former advisor Simmons.  The Hirsch report and the ORNL report are noble cries from the wilderness, but are they having any impact?  In the final analysis the only ones they will listen to are the voters.