On the question of climate change, energy producers and environmental leaders haven’t found much common ground. Yet on December 12, in a Worldwatch-sponsored forum on “Natural Gas, Renewables, and Efficiency: Pathways to a Low Carbon Economy,” representatives from the natural gas industry, environmental non-governmental organizations, and government discussed one energy resource with which a growing number of these groups finds significant agreement: the potential for natural gas to facilitate the transition to a low-carbon economy.
The event, which Worldwatch cosponsored with the American Clean Skies Foundation and the United Nations Foundation, marks the launch of a new Worldwatch Natural Gas and Sustainable Energy Initiative. As part of this initiative, Worldwatch will study the opportunities and challenges that the newfound abundance of U.S. and global natural gas presents.
A few short years ago, talk centered on a day not too far in the future when we would run out of natural gas. The expected abundance of unconventional resources has changed that horizon and there is now discussion of 100 years or more of supply.
Vello Kuuskraa of Advanced Resources International presented information about unconventional resources, where they are known to reside, and where more work needs to be done to determine what the resource is. While North America has abundant shale gas supplies, for example, more work needs to be done in China and India to know more precisely what is there. Kuuskraa also noted that while there is a lot of gas worldwide, the question of developing it must be asked consistently through the lens, “at what cost?”
Senator Tim Wirth, President of the United Nations Foundation, noted that natural gas has the potential to provide a ready-to use alternative to burning CO2 intensive coal, as gas in the electricity sector, on average, is 50% less carbon intensive than coal.
Christopher Flavin, President of Worldwatch, painted the picture of the role that natural gas can play in the transition to a low-carbon economy. Natural gas, Flavin noted, is best viewed as a key component in a broadened fuel portfolio that includes far greater reliance on renewables and energy efficiency. Gas can provide key baseload power as a complement to variable renewable energy if the two are married. Flavin also pointed out that the current fleet of natural gas plants in existence in North America runs at less than 50 percent capacity, so better use of the current infrastructure is a good first step toward greater efficiency as well.
Aubrey McClendon, CEO of Chesapeake Energy, offered a broad tutorial on the extraction and use of natural gas. McClendon pointed out that natural gas represents a 25 percent reduction in greenhouse gases in the transport sector when compared to oil. Chesapeake is one of the leading companies developing shale gas reserves in North America. McClendon called on the industry to voluntarily engage in transparency practices, as his company does, by listing on the company website the chemicals used in the hydraulic fracturing process used for extraction.
These points, as well as discussion of the politics and policy governing use of natural gas continued through a panel discussion that included Ian Smale, Group Head of Policy and Strategy for BP, Maggie Fox, Executive Director of the Alliance for Climate Protection, Holmes Hummel, a Senior Policy Advisor with the U.S. Department of Energy, Jörg Gigler of KEMA in the Netherlands, and Jyoti Parikh from Integrated Research and Action for Development (IRADe) in India.
Discussion focused, in part, on the environmental impacts associated with extraction of conventional and unconventional natural gas resources. Fox noted that impacts on water, air, and on communities is something to which companies and regulators alike need to pay careful attention. Transparency and willingness to pay for necessary safeguards was the call to action.
The policies surrounding extraction and use of natural gas, and the accompanying politics that can lead or prevent good policies was a theme that ran through the afternoon. Agreement that deployment of this resource, in the context of an expanded portfolio of energy resources, including renewables and efficiency, can help boost the glide path to a low carbon 21st century economy.
A video of the event is available online from Clean Skies TV.
Climate Change, COP15, energy, energy security, low-carbon, natural gas