Coal America’s Energy Future phần 5 docx

Conventional natural gas (NG) production in the United States is in significant decline, leading

to supply and deliverability issues, higher prices and increasing dependence on foreign sources. These

problems will become far more serious as domestic supplies continue to decline and NG demand increases.

LNG presents the same economic cost and national security problems as imported oil. Using coal to produce

NG and as replacement for NG in chemical processes would ease supply pressures by providing an alternative

to at least 15% of America’s annual NG consumption, or the equivalent of 4 trillion cubic feet (Tcf) per year.

This additional supply would moderate NG prices and use an additional 340 million tons of coal per year.

The NG made available could be used for residential, commercial, industrial and any other application that uses

NG. The amount is roughly equal to EIA’s projection of LNG imports in 2025.

World Consumption and Competition

Natural gas is projected to be the world’s most rapidly growing primary energy source over the next several

decades. The EIA has estimated that NG consumption will increase over 75% from 2000 to 2025. These data

show the steady rise in NG consumption:

In short, the global demand for NG is a steady drumbeat growing louder with each passing year. Further,

this demand will not be evenly distributed. The emerging and transitional economies of the world will steadily

increase their demand for NG in direct competition with the United States (see Figure 3.1).

Examples of Demand Growth

in Emerging Economies (Tcf)

Region/Country 2000 2025 % increase

China 0.9 6.5 600

India 0.8 2.8 250

South Korea 0.7 1.9 171

Mexico 0.9 3.0 233

Middle East 6.8 16.6 144

Figure 3.1 Source: EIA International Energy Outlook 2004 and 2005

Actual and Projected

World NG Consumption

(1980–2025)

Year Tcf

1980 53

2000 88

2010 111

2025 156

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COAL-TO-LIQUIDS

NATURAL GAS SITUATION NATURAL GAS SITUATION

APPENDICES APPENDICES

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NATURAL GAS SITUATION

A N OVERVIEW OF THE