Natural Gas

(Updated 1/26/01)

Resource base

U.S.: 167 trillion cubic feet of proved reserves

Canada: 63.9 trillion cubic feet of proved reserves

Mexico: 63.5 trillion cubic feet of proved reserves

Costs of tapping the resource base

Costs reflected in market price

Leasing

Exploration and development

Production

Transportation

Distribution

Costs arguably not reflected in market price (and size of such costs)

Greenhouse gas emissions (large)

Land and water impacts from exploration and development (minor)

Current and forecast market prices

Current prices at major trading hubs

Forecasted prices

Barriers to expanded use

Access to lands for exploration

New drilling and production technologies

Pipeline capacity to move gas to markets

Cost of electricity from natural gas

Impediments to use of distributed generation

Current policies to overcome barriers

Drilling R&D

R, D & D on high-efficiency gas-fired generation (combined cycle, microturbines, fuel cells, hybrid fuel cell/turbines)

Potential actions to overcome existing cost barriers and future cost barriers

Greater access to public lands for exploration and development

Streamlined pipeline siting

See National Petroleum Council report, recommendations.

IOGCC National Oil and Gas Policy

Potential actions to include costs allegedly not reflected in market price

Carbon taxes

Greenhouse gas emission cap and trade system