Domestic “Bridge” Fuels Gaining Support

As the global energy demand continues to fluctuate, there is no doubt that domestic shale gas, the lowest carbon fuel remains the cleanest fossil fuel when compared to existing conventional hydrocarbon sources such as crude oil and coal. There have been significant private sector efforts made in the U.S. over the last 10-20 years to increase natural gas demand for power generation by displacing crude oil and coal. Today, with major advances in state-of-the-art technology, there is much focus on harnessing unconventional sources of natural gas, via shale gas in the lower-48 states, for which the U.S. has vast and abundant domestic resources to enhance its energy independence and national security from crude oil imports and coal usage.

Surprisingly, there has been major bipartisan support in the U.S. Congress over the last few years for major legislation to ensure that natural gas takes center-stage as the “bridge fuel of choice” for a clean energy economy coupled with energy conservation, energy efficiency, reducing carbon footprint, and integration of renewable energy sources such as wind, solar and biofuels.

Using clean domestic shale gas can enhance the U.S. economy. As it is produced in the U.S., higher natural gas demand will create more jobs and using domestic shale gas in lieu of imported crude oil would reduce current trade imbalances, enabling keeping energy dollars in the U.S. instead of exporting crude oil dollars overseas. In addition, potential tax revenues can be generated at both state and local levels thereby alleviating major fiscal budget crisis which is currently prevalent. Under the current Administration, there have been clear signals sent recommending that domestic shale gas be considered an important part of the U.S. energy policy because using it produces less greenhouse gases (GHG) than any other fossil fuel. There has been legislation introduced, H.R. 1835, The New Alternative Transportation to Give Americans Solutions Act (or “Nat Gas” Act), to the 111th Congress on April 1, 2009, yet to be passed by the U.S. Congress containing robust support for natural gas transportation initiatives including mass-deployment of natural gas vehicles (NGVs). Under the proposed legislation, there will be expansion of the market for natural gas as a heavy-duty transportation fuel by increasing incentives for gas-powered buses and heavy trucks. In addition, creation of incentives for communities to develop bus rapid transit systems that employ buses fueled by natural gas.

The recent development of advanced technology enables the affordable development of significant shale gas reserves in the lower-48 states could fundamentally alter the U.S. energy system and play a larger role in helping to more rapidly and cost-effectively speed the transition to a low-carbon economy and reduce global warming pollution. The current Administration has also focused greater attention on exploration & production companies to safely and environmentally use benign methods for proper water usage, treatment and recycling during the hydraulic fracturing process. In addition, there are other commercially viable technologies being utilized by some companies which can eliminate water usage with substitution of other safer fluids for extracting shale gas. It is now both vital and important for U.S. Congress to go beyond political stalemate and enact effective legislation to ensure that natural gas takes center-stage in the U.S. clean energy economy and as a “bridge fuel” transitioning to an integrated energy mix conventional / alternate / renewable sources of energy.