The Elephant In Gas Producers’ Boardrooms
Oil and Gas Investor placed a blog posting up yesterday that got my attention. It was in follow up to a natural gas cover story called “Building Gas Demand,” by Porter Bennett.
The blog posting highlights Bennett’s opinion that “based on current supply forecasts, that the Nymex price for natural gas may one day no longer be based on delivery at Henry Hub in South Louisiana” (psst… if not there, then where?) and it talked about using the metaphor of an elephant for natural gas. Using an elephant as an icon for promoting natural gas may not be the best idea (they have large footprint, unlike natural gas), but the author is right- natural gas needs proper branding.
Read below some of the highlights from Nissa Darbonne posting on the Oil and Gas Investor blog site.
There is an elephant in the U.S. energy-policy debate: the undeniable benefits of greater reliance on natural gas as a leading source of fuel, and no matter what each American would like to see Washington achieve via energy policy.
– Natural gas has greater energy content, in an Mcf of gas versus a gallon of gasoline comparison. An average-car fill-up—approximately 16 gallons of fuel—would cost about $8.40 at today’s natural gas price
– Its carbon footprint is lower than that of coal and crude oil. It produces 90% fewer particulates and half as much greenhouse gas
– It is necessary as a backup power-generation fuel source if the U.S. is to power more homes and businesses with solar and wind. Natural gas-fueled power plants can sit ready, idle when solar and wind don’t carry their load
– It is available in great quantity domestically, suggesting reduced dependence on foreign oil, thus fewer U.S. dollars sent abroad and less interest in keeping up relations with hostile exporters and their enemies
– Generally, there isn’t a lower-carbon-footprint fuel that is available domestically—or abroad—in sufficient quantity and as inexpensively
In days past natural gas producers were busy trying to figure out the U.S. shale-gas plays, surfacing supplies, and working to keep up with natural gas demands. Before there was no real need to product a market for natural gas, but now we have all this domestic supply of natural gas and how people and the industry view natural gas and the promotion of it as a product needs to change.
Let’s hope that the American Natural Gas Alliance uses the $100 million that has been pledged and work creatively to come up with really effective branding for natural gas that Americans can undersrand and identify with. If milk could do it, “Got Milk” and pork with “the other white meat”- surely natural gas can do it.
Have any suggestions?
Read More About the American Natural Gas Alliance
See an article in the Wall Street Journal for more details on the American Natural Gas Alliance.
More than 20 of the nation’s largest independent natural gas exploration and production companies have formed the American Natural Gas Alliance (ANGA). The group hopes to increase awareness and appreciation of America’s clean and abundant supply of natural gas among consumers and policy makers.
The organization has appointed Rodney W. (“Rod”) Lowman as president. Lowman is establishing the natural gas alliance’s governance structure, public policy priorities, and strategic communications initiatives.
“Our mission is to increase market appreciation for American natural gas as the clean, abundant, affordable, and dependable solution to the most challenging energy and environmental issues facing the US,” says David A. Trice, president and CEO of Newfield Exploration Co. and chairman of ANGA.
Posted by: C. Keddy
