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Articles in The New York Times, The Dallas Morning News and others have noted that ExxonMobil’s agreement with XTO Energy, completed last week, highlights the expanding role of natural gas in general, and supplies of so-called “unconventional” natural gas in particular.
That’s true, for several reasons. But first, I’d like to point out that the term “unconventional gas” is often misunderstood. The resources we refer to as unconventional – such as tight gas, shale gas and coal bed methane — are increasingly part of the mainstream. Already, about one-third of U.S. gas demand is met by these resources; by 2030, unconventional gas is expected to meet more than 50 percent of domestic demand.
New technologies developed over the past 10 to 20 years have enabled ExxonMobil, XTO and others to reach these previously trapped resources. The result has been a significant turnaround in the domestic natural gas industry, with dramatic results for the U.S. economy and its energy security. For example:
- Last year, the United States overtook Russia as the world’s largest natural gas producer.
- The United States has enough natural gas to last about 100 years at current demand levels.
- The natural gas industry supports more than 2.8 million American jobs, with the potential to create more jobs as investment in natural gas production grows.
Because natural gas is the least-carbon-intensive fossil fuel, it can be a powerful tool for reducing emissions. Consider this: Natural gas can result in up to 60 percent less carbon-dioxide emissions than coal, currently the most popular fuel for power generation in the United States and around the world.
That statistic has drawn attention from a wide variety of people interested in finding solutions to our energy and environmental challenges. In a June 2009 article, ClimateProgress.org wrote that expanding supplies of natural gas in the United States “may be the single biggest game changer for climate action in the next two decades.”
ExxonMobil already produces more natural gas than any other public company in the world. With the addition of XTO’s high-quality people and portfolio, we will be able to produce more of this cleaner-burning fuel in the United States and around the world — while also supporting jobs, economic recovery, energy security, and environmental goals.
What is the status of ExxonMobil’s Qatar gas projects? Qatar sits atop one of the largest natural gas deposits in the world. This deposit, shared with Iran, has recently come into play as LNG is becoming more viable. Does ExxonMobil operate any LNG terminal facilities in the US?
Geary – natural gas from Qatar has evolved from a regional resource to a key source of diversification in the global energy mix. We’re working with Qatar Petroleum on a number of projects in Qatar and around the world, including some of the world’s largest operating LNG trains and 12 new, more efficient LNG vessels – the Q-Flex and Q-Max.
Along with partners, we inaugurated Al Khaleej Gas-Phase 2 earlier this year. When combined with the first phase, it is Qatar’s largest source of domestic natural gas. In regard to LNG terminals, we have partnered with Qatar Petroleum and others on the Adriatic regasification terminal offshore of Porto Levante, Italy, the South Hook receiving terminal in Milford Haven, Wales – both of which were commissioned last year – and the Golden Pass LNG terminal, which is under construction near Sabine Pass, Texas.
Our CEO, Rex Tillerson, talked to Forbes about our partnership with Qatar Petroleum. You can read more about it here.
Thank you for the update Ken. How is the company addressing the safety issues with LNG. I have followed the safety concerns regarding an explosion involving an LNG tanker and would like to hear your perspectives on the issue. Lots of claims regarding the explosive power of LNG
The LNG industry has a proven safety performance record over its 50-plus year shipping history. Industry standards, codes, training, inspections and operating procedures as well as government regulations are in place for the safe design, construction and operation of LNG terminals and ships. The Center for LNG has more information on LNG safety as does the Federal Energy Regulatory Commission.
@”New technologies developed over the past 10 to 20 years have enabled ExxonMobil, XTO and others to reach these previously trapped resources. “
“Trapped” – Quite an interesting display of diction.
The reality is that these materials are not meant to be harvested for profit by man, but let’s be honest – global demand seemingly necessitates this kind of behavior. Your company is using this blog to promote this activity, known as “fracking” (short for ‘fracturing’) as a healthier, happier form of natural gas extraction.
The film ‘Gasland’ offers damning evidence to the contrary. Here’s the trailer: http://www.youtube.com/watch?v=dZe1AeH0Qz8. Pay special attention to the man lighting his kitchen faucet on fire. Notice the brown water filling residents’ glasses as they lease their land for ‘fracking’.
We all need to do better and think bigger when it comes to energy discipline. Promoting reverse mountaintop removal strategies for gas extraction seems juvenile at best and to some, criminal at worst. The laws just aren’t written that way.
Much of the coverage on hydraulic fracturing makes it seem like it’s a new technology. But in fact, hydraulic fracturing has been used since the 1940s in more than 1 million wells in the United States with no documented harm to groundwater supplies.
As for Gasland, there are a lot of concerns in the industry about the accuracy of Josh Fox’s film. Energy in Depth explores the facts in a recent blog post.
To be precise, high-volume horizontal slickwater hydraulic fracturing is a recent phenomenon.
Let’s DO be honest, Jason – …”materials are not meant to be harvested for profit by man…” Please! Posting your comment required electricity, cables, an electronic device, and many other components produced through use of materials harvested by man. This is what man does, has always done and must always do. We survive by using available resources. It ultimately provides the technology for someone having a warped sense of superiority to hypocritically condemn energy production while consuming produced energy to do so.
Let’s move to Europe, where the prospects of unconventional gas are still unclear. What, according to ExxonMobil, is the biggest challenge in exploring for these resources here?
Good question. Given the outlook for increased natural gas demand in Europe, the incentive to tap locally sourced unconventional gas is clear. It’s still early days, but there are a number of areas across the continent that may have commercial possibilities. But the biggest challenge is to manage expectations of near-term success. While there’s been a significant increase in U.S. unconventional production in recent years, it’s important to remember that our industry has been working there for more than 20 years. And Europe is just now starting down this road. Based on our industry’s experience in the U.S., considerable time and effort will be required to unlock the geology that’s unique to each resource. Yes, the U.S. experience may provide a roadmap for acceleration, but we have a lot of work to do in Europe to develop the appropriate skills and technology to realize this potential, and this will take time.