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As energy consumers, Americans benefit most when all of the nation’s energy sources play a role in supplying the grid. Subsidies, like those recently pushed for nuclear plans in New Jersey, Ohio and Connecticut create a distorted market with an uneven playing field and do a disservice to energy consumers. While voters in key states like Pennsylvania, New Jersey, Ohio and Connecticut have made it clear in the polls that they don’t want to pay for nuclear plant bailouts, a recent IHS Markit study oddly suggests that the solution to market distorting subsidies to some energy sources is more subsidies. The study says that: Subsidies for specific generating technologies do not reduce, but rather shift, some of the cost of specific electric generation technologies. Federal subsidies shift some costs from consumer power bills to current or future consumer tax bills. In addition, some state subsidies shift costs from consumers with distributed generation resources to those without. Since subsidies shift costs, the result is the development of more subsidized resources than are cost-effective with a level playing field. As a result, an economic rationale exists for market interventions to offset the unintended consequences of the uneven playing field. Allowing the market itself to choose winners and losers in energy sourcing is the best approach to electricity generation for consumers. Factors like reliability, affordability and efficiency come into play, and unbiased markets allow for the innovation and competition that results in real solutions like lower prices and a better end-product. Natural gas was the leading energy source in the United States in 2016 with its growth attributed not to subsidies, but to the market. A recent study examined different energy sources to determine their reliability when supplying the future U.S. power grid. Study results show that “natural gas is uniquely positioned among energy sources to supply attributes – dispatchability, ramp rates, frequency response and others – that ensure the future reliability of the U.S. power grid.” These results demonstrate how natural gas provides a reliable source of energy, without subsidies that tip the market. While the idea is not to argue against other energy sources, the market and consumers alike can see the advantages offered by natural gas. And ultimately, the advantages offered to consumers by a market free of distorting-subsidies. More Natural Gas. Fewer CO2 Emissions. Why does natural gas emit less CO2? Natural gas is a clean burning energy source and the reason boils down to chemistry. When fossil fuels are burned, oxygen combines with carbon to form carbon dioxide (CO2), and with hydrogen to form water (H2O). These chemical reactions create the heat we use for energy. The amount of CO2 released into the atmosphere during this process depends on how much carbon the fuel source has – more carbon produces more CO2. Natural gas has a high hydrogen content and a low carbon content, consisting of four hydrogen atoms and only one carbon atom. The result? For the same amount of energy produced, burning natural gas emits significantly less CO2 into the air than other fossil fuels. What are the Benefits of Fewer CO2 Emissions? Natural gas has become the nation’s largest fuel source for electricity generation, providing more than 31 percent of U.S. electricity in 2017. Yet even as natural gas continues to increase its share of the electricity grid, CO2 emissions are steadily dropping. Since 2000, CO2 emissions from power generation have fallen 21 percent – their lowest levels in nearly 30 years. By 2030, CO2 emissions from power generation are expected to drop by as much as 30 percent from 2005 levels because of the increasing shift to natural gas. This reduction of CO2 emissions benefits communities and the environment, while propelling the U.S. toward climate progress. In 2016 alone, the shift to natural gas prevented 383 million metric tons of carbon dioxide from being emitted into the atmosphere. That’s the equivalent of taking more than 81 million typical passenger vehicles off the road for a year. Establishing a clean energy mix will help to protect the environment and natural gas is an essential piece of the puzzle. How is the Market Mandating Clean Energy? The increased use of natural gas for electricity generation isn’t just better for the environment, it’s also lowering energy costs for businesses and consumers. The surge in domestic natural gas production – up 50 percent between 2005 and 2016 – created a supply large enough to win the marketplace. For the first time, clean energy, abundant energy, and affordable energy are not mutually exclusive. This unique approach to market-driven clean energy has enabled the U.S. to become a global model for climate action. But this progress didn’t happen overnight. Clean and affordable natural gas stems from years of industry innovation. From 2000 to 2014, the natural gas and oil industry invested $90 billion in technology to reduce greenhouse gases. For decades, the country has grappled with how to produce the amount of energy we need to live comfortably and support the U.S. economy while also protecting the environment. Technology has changed the game and the market has responded. Affordable, abundant natural gas is lowering CO2 emissions and helping us work toward a sustainable future.

How Do Natural Gas Pipelines Work? In the 1920s, natural gas was discovered in the United States’ Great Plains. Upon that discovery, the rate of pipeline construction increased sharply to accommodate a growing need for natural gas as a heating fuel in large Midwestern cities. Since then, the United States has developed a sprawling natural gas pipeline network, composed of over 300,000 miles of transmission pipelines, and more than 210 separate natural gas pipeline systems. This large system can transport natural gas to and from virtually any location in the lower 48 states through both interstate and intrastate pipelines. During the transportation process, natural gas passes through many physical transfers and processing steps. Natural gas is sourced from a producing well or field, and then sent through three main natural gas pipeline types: Gathering pipelines are small-diameter pipelines that move natural gas from a wellhead, to either a mainline transmission grid, or processing plant, depending on the quality of the initial product. Processing plants separate hydrocarbon gas liquids, nonhydrocarbon gases, and water from the natural gas before it is sent to a transmission system. Transmission pipelines are wide-diameter, long-distance pipelines that transport natural gas from the producing and processing areas to storage facilities and distribution centers. A number of compression, or pumping stations line transmission pipelines. These stations contain one or more compressor units that receive the transmission flow from a previous station, and increase the rate and pressure of flow to sustain the movement of the gas along the multiple pipelines it needs to travel to reach markets and consumers. Distribution pipelines, or local distribution lines, move gas closer to cities and residential areas, where local distribution companies reduce the pressure of the natural gas to a level that is suitable for residences and commercial establishments. Smaller service lines travel to the homes, businesses, or industrial areas in need of natural gas. The Natural Gas Solution What is liquid natural gas? Changing natural gas to its liquid state makes storage and transportation of the resource much easier, as it shrinks in volume about 600 times. Liquified natural gas, commonly referred to as LNG results when natural gas has been cooled to a low temperature of -260 degrees F. Impurities are removed and the nontoxic liquid is clear, odorless and noncorrosive. The condensed liquid is transported by ship and when it reaches its destination, it is off-loaded into insulated storage tanks. Regasification is the process that converts LNG to its gas form, which then enters a pipeline distribution center and can be delivered to the consumer. Exports LNG exports from the United States provide the global market with a safe, alternative and reliable source of energy. And exporting natural gas offers economic benefits to the United States, including the thousands of jobs created by domestic production. It is estimated that the export of LNG could provide $10 billion to $31 billion to natural gas producing states. Demand for supporting equipment and goods and other materials like steel and cement benefits even non-natural gas producing states. Safety Over several decades, LNG and its exportation have been handled safely; more than 135,000 carrier voyages have occurred without major accident or security issues. LNG ships are designed to prevent rupture or leakage and they are equipped with numerous technologies for safety and accident prevention. To ensure safe handling and transport, LNG is regulated by the following federal agencies, among others: Federal Energy Regulatory Commission Department of Transportation S. Coast Guard Department of Homeland Security