Oil and Natural Gas - Energy Policy Analysis: A Conceptual Framework - page 92

ing the LNG to instantly convert from its liquid phase to its gaseous phase in a boiling “rapid
phase transition.” The volume of the LNG instantly expands 600 times, releasing a large amount
of energy and resulting in a physical expansion or explosion that can be devastating to any liv-
ing organisms or buildings nearby (Natural Gas Supply Association 2010), although there is no
immediate combustion.
LNG weighs slightly less than half as much as water, so it floats on fresh water or seawater. In
shallow-water marine ecosystems such as coastal wetlands and marshes, it would instantly freeze
any living organisms present. As the LNG vaporizes, a vapor cloud resembling ground fog will
form under relatively calm atmospheric conditions. The vapor cloud is initially heavier than air
because it is so cold, but as it absorbs more heat, it becomes lighter than air, rises, and may be
dissipated by a breeze. Although an LNG vapor cloud cannot explode in the open atmosphere,
exterior portions may ignite if the vapor comes in contact with an ignition source. Otherwise,
an LNG vapor cloud may simply dissipate into the atmosphere (California Energy Commission
2003, 2-3).
The extreme cold of LNG can directly cause injury to living organisms or damage to physi-
cal structures. Although not poisonous, exposure to the interior of a vapor cloud would cause
asphyxiation due to the absence of oxygen. Although momentary skin contact can be harmless,
extended contact will cause severe frostbite or freeze burns. On contact with certain metals,
such as ship decks, LNG can cause immediate cracking (California Energy Commission 2003,
2-3).
An ignited LNG vapor cloud is very dangerous because of its tremendous radiant heat output.
Furthermore, as a vapor cloud continues to burn, the flame may burn back toward an evaporating
pool of spilled liquid, ultimately burning quickly evaporating natural gas immediately above the
pool, giving the appearance of a “burning pool” or “pool fire.” An ignited vapor cloud or a large
LNG pool fire can cause extensive damage to life and property (California Energy Commission
2003, 2-3).
Spilled LNG would disperse faster on the ocean than on land, because water spills provide
very limited opportunity for containment. Furthermore, LNG vaporizes more quickly on water,
because the ocean provides an enormous heat source. For these reasons, most analysts conclude
that the risks associated with shipping, loading, and off-loading LNG are much greater than those
associated with land-based storage facilities (California Energy Commission 2003, 2-3).
Dollar Costs of Utilizing Oil and Natural Gas
U.S. consumption of oil was about 19.1 million barrels per day and consumption of natural gas
was about 23.8 quadrillion cubic feet in 2010 (USEIA 2011c, 2011d). The market cost to consum-
ers for petroleum products in calendar year 2009 was estimated at a bit over $578.5 billion, and a
little less than $871 billion in 2008 (USEIA 2011a, Table 3.5). The market cost to consumers for
natural gas consumed in calendar year 2009 was estimated at a bit over $159 billion, and a little
more than $230 billion in 2008 (USEIA 2011a, Table 3.5). Federal subsidies and tax expenditures
for natural gas and petroleum liquids were estimated at a bit over $2.8 billion for FY2010 (USEIA
2011b, xiii), including $654 million for production of electricity (USEIA 2011b, xviii).
The United States relied on imported oil for about 49 percent of its consumption at an estimated
cost of about $530.3 billion to the economy in 2010 (calculated from USEIA 2011e), about $9.8
billion of which went to OPEC countries. Imports of crude oil and petroleum products from OPEC
countries accounted for about 55.5 percent of all imports in 2010 (calculated from USEIA 2011e).
Domestic production of natural gas accounted for 83.7 percent of consumption and the United