 What
is Natural Gas?
Natural gas is made up of
hydrocarbon gases, primarily methane. It is usually found deep
below the earth's surface, often with deposits of oil, and is
removed by wells that are drilled to access the petroleum
deposits.
After it reaches the surface, the
gas is separated from any oil or water that may have been
present in the petroleum deposit. It is then processed to remove
impurities, other gases such as propane and butane, and any
remaining water or water vapor.
Why use Natural Gas?
Natural gas is a fuel of choice
because it is:
- Efficient
- Clean-burning (emits few
pollutants)
- Flexible
- Plentiful
Natural gas is the
cleanest-burning fossil fuel. Environmental concerns have led to
a number of new uses for gas to take advantage of its
clean-burning characteristics. For example, electric generation
facilities are choosing to build and install gas-fired turbines
and to use natural gas in conjunction with other fuels to reduce
emissions.
How is Natural Gas Transported?
Natural gas is transported in an
underground system of large-diameter pipes. The force that
propels the gas is its pressure, which gradually dissipates as
it travels through the pipeline. A series of compressor stations
are positioned along the pipeline's path. Each station has a
number of large compressors that increase the pressure of the
gas to push it to the next station along the line.
Who Uses Natural Gas?
There are five main groups of
natural gas users.
- Residential users:
use natural gas in their homes to fuel furnaces and
appliances such as stoves, water heaters and clothes dryers.
- Commercial users:
use natural gas in businesses such as restaurants, hotels,
and hospitals.
- Industrial users:
use natural gas for heating processes and as fuel for the
generation of steam.
- Electric utilities:
use natural gas to generate electricity.
- Natural gas pipeline
companies: use natural gas as a fuel to run
compressor units.
Industry Sectors
Over 200,000 miles of
transmission pipelines deliver natural gas to more than 160
million North American consumers in the United States, Canada
and Mexico. While most electric energy is delivered through
integrated utility companies, four industry segments coordinate
to bring natural gas from producing wells to homes and industry.
Pipelines serve as the highways of the gas industry, making it
possible for gas sellers and buyers to reach each other.
Gathering & Processing
Natural gas is a commodity
produced by major oil and gas companies and independent gas
producers and traded in a competitive market.
During the production phase, gas
producers use advanced technology to locate and drill for gas
reserves. Gas is pumped from wells into gathering lines.
Gathering operations bring natural gas to processing plants that
remove moisture and impurities from the gas stream, and to
separate liquid byproducts. Today, we consume about 22 trillion
cubic feet of gas per year, which is about 25 percent of the
energy consumed in the United States.
Marketing
Marketing companies act
independently from gas pipeline companies, and serve as sales
agents or brokers, purchasing gas from producers, selling gas
and arranging transportation for large consumers and local gas
distribution companies.
Transportation & Storage
Interstate natural gas pipelines
are transportation companies, like railroads or trucking
companies. They do not own the commodity they carry in their
pipelines or store in their underground facilities. Their job is
to move natural gas from producing areas to market areas under
contract to gas buyers. Buyers such as local gas distribution
companies and marketers resell the natural gas to their
customers. Others transport directly to industrial and electric
generation facilities. The Federal Energy Regulatory Commission
(FERC) sets transportation and storage rates charged by pipeline
companies; however, FERC requires pipelines to operate
"open access" systems that allow any shipper to
request gas transportation on any pipeline.
Local Distribution
If you have gas service in your
home, your meter reader works for a local distribution company (LDC).
LDCs contract for gas supplies and for interstate pipeline
transportation to bring natural gas to their own "city
gates," where they deliver gas to homes, businesses and
industrial plants served by their own distribution pipelines.
State public service authorities regulate these distribution
companies and their sales.
|
