As we continue to debate policy options related to energy and the environment in the United States, a new study from the Massachusetts Institute of Technology offers a timely message about the growing importance of natural gas. To substantially curb carbon-dioxide (CO2) emissions through 2050, the study says, the lowest-cost policy option would lead to a shift toward natural gas, particularly for power generation.

The MIT study, entitled “The Future of Natural Gas,” points out that natural gas is a unique fuel. It is abundant; it has a lower carbon intensity than oil or coal; and it burns cleanly and efficiently.

The study says that any U.S. policies for curbing CO2 emissions should aim to create a “level playing field,” where all energy technologies can compete against each other in an open marketplace. In such an environment, natural gas would play an expanded role — as coal-fired power plants are replaced by highly efficient gas generation. (A typical coal power plant emits more than twice the CO2 per unit of energy generated than a natural gas combined-cycle power plant, according to the study.)

Right now, it’s unclear whether U.S. policymakers will follow the MIT study’s advice about policies that ensure a level playing field. Current energy bills in the House and Senate would, for example, mandate the percentage of U.S. electricity that must come from renewable sources such as wind and solar. While these sources can certainly make an important contribution to the energy mix, the MIT study found that such provisions would be significantly more expensive compared to the “level playing field” approach.

Why the focus on power generation? Because power generation is the single-largest energy-demand sector, accounting for about 40 percent of U.S. energy use. About half of America’s electricity is generated by burning coal. These facts, which are often overlooked, mean that power generation offers the United States the greatest opportunity for near-term CO2 reductions.

ExxonMobil’s Energy Outlook indicates that gas will be the fastest-growing major fuel through 2030, and we share MIT’s conclusions that gas will increasingly be the fuel of choice for power generation.

Expanded use of U.S. natural gas resources would be good for the economy and the environment.  But, as the MIT study points out, for the United States to extract the maximum benefit from this abundant, clean-burning, and affordable fuel, we will need the right economic and policy climate.  I would encourage anyone interested in energy and environmental policy to read this important study.