Introduction to “Conventional” Natural Gas Kenneth M. Klemow, Ph.D. BIO / EES 105 at Wilkes University.

Introduction to Introduction to “Conventional” Natural “Conventional” Natural GasGasKenneth M. Klemow, Ph.D.BIO / EES 105 at Wilkes University

What is natural gas?What is natural gas?Composed mainly of methane

and other molecules.

About methane:•Energy content: 55.7 kJ/g•Vaporization point: -260oF 160oC

NG has two general formsNG has two general forms◦Thermogenic – From breakdown of

fossil organic matter below earth’s surface Hundreds of feet to miles below surface Need heat and pressure

◦Biogenic – From breakdown of organic matter at earth’s surface. Decomposition without oxygen Wetlands, garbage dumps

Wet Gas Vs Dry GasWet Gas Vs Dry GasDry gas – mainly methaneWet gas – includes ethane,

propane butane

Conventional vs Conventional vs Unconventional Natural GasUnconventional Natural Gas• Conventional gas

–Relatively easy to extract–Forms include

• Associated with oil• Not associated with oil• Can be onshore or offshore

• Unconventional gas–More difficult to extract–Derived from

• Shale, coal-bed

Geology of gasGeology of gas

http://www.safehaven.com/article/16566/shale-gas-miracle-pill-or-empty-promise

Focus on Conventional Focus on Conventional GasGas

How does thermogenic NG How does thermogenic NG form?form?Organic matter gets buried by

other sedimentsBreaks down without oxygen under

pressure, forming hydrocarbonsTemperature dependent

◦Lower – petroleum◦Higher – methane

Often gas mixed with petroleum, released when pressure reduced.

History of natural gas History of natural gas developmentdevelopmentFirst isolated by Chinese about

500 BC.◦Captured gas seeping from ground,

piped it using crude pipelines.Mid-19th Century

◦Burned off during oil production (flaring)

Early 20th Century◦Pipelines constructed to capture and

transport

Historic Gas ProductionHistoric Gas Production

Conventional gas production Conventional gas production - US- US

Gas utilizationGas utilizationEnergy

◦Electrical generation◦Heating / cooking◦Transportation

Feedstock for industrial processes◦Plastics◦Organic chemicals◦Fertilizers

Energy use of natural gasEnergy use of natural gas

http://www.c2es.org/publications/natural-gas-markets-use-overview

Conventional well Conventional well productionproductionGeologists find

gas reservoirDrill boreholeCase well in

steel and concrete

Gas flows upward

Captured into pipeline

Wells sometimes need to be Wells sometimes need to be stimulatedstimulatedAdd acid,

water, or gases to promote NG flow from the well

http://www.businessweek.com

Natural gas must be Natural gas must be processedprocessedRemove impurities

◦Hydrocarbons (ethane, propane, butane)

◦Hydrogen sulfide◦Water vapor◦Nitrogen compounds

Gas distribution systemGas distribution system

http://www.c2es.org/publications/natural-gas-infrastructure

Major NG pipelines in USMajor NG pipelines in US

NG can be compressed and NG can be compressed and liquifiedliquifiedBoth reduce volume making it

easier to transport

CNG – Compressed to 1% CNG – Compressed to 1% original volumeoriginal volumeUsed as a fuel for vehicles

◦Cars, trucks, buses, locomotives◦Some engines run on both CNG and

gasoline◦Common in Iran, Pakistan, Argentina,

Brazil◦Efforts to increase use in US

http://gas2.org/http://www.ngvglobal.com/

LNG – Cooled to -260LNG – Cooled to -260ooFFHas 2.4 times more energy than

CNGTransported via trucks and ships

where pipelines not presentMust be stored in cryogenic tanksNot used as fuel

http://ubpost.mongolnews.mn http://cryptome.org/eyeball/lng/lng-eyeball.htm

Conventional gas production Conventional gas production – worldwide– worldwide

Location of conventional Location of conventional natural gasnatural gas

Pricing natural gasPricing natural gasNatural gas sold by volume

◦Typical basis 1000 cubic feet (Mcf)◦Also used

1 million cf (MMcf) 1 billion cf (Bcf) 1 trillion cf (Tcf)

◦1 Mcf = 1 million BTU

Pricing natural gasPricing natural gasDifferent prices often quoted

◦Wellhead – Unprocessed NG at well◦Henry Hub – Port in Louisiana, used as

basis for NY Mercantile Exchange Futures price – Contract price for specified

amount of gas at specified time

◦City Gate – Price paid by utility receiving gas from major pipeline

◦Electric Power price – Paid by electric utility

◦Residential price – Paid by consumer

Pricing natural gasPricing natural gas

http://geology.com/articles/natural-gas-prices/

Pricing long term trendPricing long term trend

http://geology.com/articles/natural-gas-prices/

Pricing NG – more recentlyPricing NG – more recently

http://marketrealist.com/2013/05/natural-gas-rig-count-fell-by-four-last-week-down-20-since-start-of-2013/

Pricing NG – Comparing Pricing NG – Comparing fuelsfuels

http://www.aei-ideas.org/2013/02/us-households-will-save-billions-in-2012-from-falling-natural-gas-prices-offsetting-higher-gasoline-prices/

Pricing NG – Effects of Pricing NG – Effects of seasonseason

International price trendsInternational price trends

http://ourfiniteworld.com/2012/03/23/why-us-natural-gas-prices-are-so-low-are-changes-needed/

Benefits of Conventional Benefits of Conventional Natural GasNatural Gas

High energy densityLess polluting than coalEasy to transportDoes not cause radioactivityReliable

Drawbacks of Conventional Drawbacks of Conventional Natural GasNatural GasBurning releases greenhouse

gasesDrilling and pipelines impacts

habitatSupplies dwindling