September 7, 2012- The Penn State Natural Gas Utilization Conference was held on September 6-7, 2012, in University Park, PA. The conference focused on sharing in-depth information on the key uses of natural gas as a transportation fuel and conversion to liquid transportation fuels and chemicals.
CEO of ADI Analytics, Uday Turaga, presented on 'Doing more with shale gas.' To present long-term solutions in new demand for shale gas, the study benchmarked several gas monetization options seen through the creation of a robust model developed to analyze the economics of each gas monetization option and estimating returns from each gas monetization option in five North American locations.
The first key takeaway the models presented was that power generation will continue to consume material volumes of natural gas spurred by coal-fired power plant retirements, which will be a positive on demand for natural gas. Second, natural gas conversion to liquid fuels is challenged by high capital costs. Third, LNG exports offer the best economic returns for monetizing natural gas which has been seen in the 15 projects proposed in the market. Fourth, natural gas vehicles are unlikely to consume material volumes of natural gas due to challenges with market adoption and penetration. One challenge includes the incredibly slow growth of new technologies in the market most likely meaning transportation will have a small impact in overall demand for natural gas.
To gain in-depth information on each of our takeaways, access the full presentation by filling in the information below.
