Civil Engineering Reference
In-Depth Information
As natural gas supplies have increased and prices have dropped,
automakers and truck manufacturers have begun taking steps to introduce new
vehicle lines fueled by natural gas, principally compressed natural gas (CNG)
and liquefied natural gas (LNG). Several factors have contributed to this
interest:
Price differential.
On an energy-equivalent basis, oil has been more
expensive than natural gas in recent years. Moreover, while oil prices
are set in a global market, U.S. natural gas prices are largely
determined domestically, and the discovery of large domestic reserves
suggests that prices may remain relatively low.
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Environmental preference.
Natural gas, while also a fossil fuel,
generally produces lower emissions per vehicle mile than diesel and
heavier oil.
Energy diversity and security.
Increased use of domestic natural gas
for transportation may mean that less oil will be imported. The United
States might be more insulated from global petroleum price volatility
if more forms of transportation were based on natural gas.
Growth potential.
Only 2.9% of U.S, natural gas production is
currently used in transportation, mainly to move gas through the
pipelines, and expanded use of natural gas vehicles would likely lead
to increased demand for natural gas.
C
HANGE IN
U.S.
N
ATURAL
G
AS
S
UPPLY
Technology improvements such as hydraulic fracturing and directional
drilling have led to massive growth in natural gas production from shale
formations.
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Annual natural gas production in the United States has increased
by roughly one-fourth since 2006 (
Figure 1
).
Oil-based gasoline and diesel fuel continue to remain the fuels of choice in
both the domestic and commercial transportation sectors. However, U.S.
demand for finished petroleum products has fallen 12% from its all-time peak
in 2005, due in part to greater use of natural gas for many purposes. Although
natural gas consumption by vehicles grew 26% from 2008 through 2013,
natural gas still represents less than 1% of the fuels used in the transportation
sector.
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