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Where Does Natural Gas Come From? Natural gas has existed for millions of years underneath the Earth’s core. Before civilization understood what natural gas was, it posed a mystery. The gas would seep from below the Earth’s surface and create fire when mixed with lightning strikes on the ground. In 500 BC, Chinese civilizations created crude pipelines made from bamboo shoots to transport the gas. The gas was used as a fuel source to create drinking water, by boiling sea water to separate the salt. Natural gas was found in America in 1626 by French explorers who noticed that the Native Americans were igniting gases that seeped from Lake Erie. More than 100 years later in 1785, Britain became the first country to commercialize the use of natural gas, using it to fuel lighthouses and streetlights. In 1821, the first intended mission to obtain natural gas in America was a dig in Fredonia, New York by William Hart. Hart is known as the “father of natural gas” as he pioneered the first American natural gas company known as the Fredonia Gas Light Company. Post-World War II started the boom of the natural gas pipeline industry. By the 1960’s, thousands of miles of natural gas pipelines had been constructed in America, and the industry has continued to grow through modern day. Natural Gas Sources Most natural gas in America is retrieved though a “horse head” pump, which moves up and down to lift a rod in and out of a well bore, bringing the gas to the surface. Another technique, commonly known as fracking, creates tiny cracks in the rocks located by natural gas reservoirs. Fracking opens a pathway for the gas to flow to the surface. The least common extraction method uses the natural pressure of the underground reservoir to force the gas though the rocks. A “Christmas tree”, or a series of pipes and valves on the surface controls the flow of the gas. Where is Natural Gas Found? Natural gas deposits in the Earth’s surface are usually found near oil deposits. The deeper the deposit, the higher percentage of natural gas than oil. The deepest deposits are pure natural gas. Natural gas is also found in the intestines of animals – including humans – and in low-oxygen areas near the surface of the earth. Natural gas can be found below the Earth’s surface all over the world. The countries located above the most natural gas are: Russia Iran Qatar Turkmenistan United States of America Saudi Arabia Iraq In America, the top five states with most natural gas reserves are: Texas (26%) Pennsylvania (18%) Oklahoma (9%) Wyoming (6%) Louisiana (6%)

What is Natural Gas Used for? There are many uses of natural gas, all of which benefit our society. From the early 19th to 20th centuries, natural gas was primarily used to power lights in buildings and on streets. Today, modern technology has allowed us expand the uses of natural gas, some of which include: Electricity Generation – The primary use for natural gas is to generate electrical power. Natural gas is the source of more than 25% of the nation’s electricity. According to the Energy of Information Administration, in 2035, 46% of new generating capacity added to the grid will come from natural gas. Heating – Heat produced from natural gas feels warmer than heat that is produced by an electrical pump. More than half of American homes use natural gas to provide heat, hot water and fuel for cooking. More businesses are turning to natural gas to heat offices spaces too, as it is more cost effective than electric heating pumps. Cogeneration and Trigeneration – Electrical energy and heating can be used simultaneously through the technological process of cogeneration, or in simpler terms combined heat and power. Trigeneration is the combination of electricity, heating and cooling. Both processes can increase energy efficiency by 75 to 80 percent. Transportation – Most people don’t realize that natural gas has been used to power vehicles since the 1930’s. Now, more than 150,000 vehicles on America’s roads and more than 5 million worldwide are powered by natural gas. This number is expected to increase due to the popularity of natural gas being used to fuel buses and trucks. Natural gas used in transportation reduces harmful emissions released into the air, which decreases smog pollution. Manufacturing – Steel and paper production uses natural gas to generate process steam for industrial applications. Natural gas is also used for petrochemicals, which are incorporated in plastics, fertilizers, synthetic fibers, cosmetics and medicines. The many uses for natural gas have increased its use as a fuel source domestically and around the world. As society continues to use natural gas instead over other energy sources, we can reduce pollution and benefit from economic, public health and environmental benefits.

Is Natural Gas Affordable? Yes, natural gas offers an affordable source of energy. According to an IHS study, 800 trillion cubic feet of natural gas can be developed for around $3 per cubic foot, and America consumed 27.5 trillion cubic feet of natural gas in 2016. When you do the math, it’s clear that natural gas is a cost effective solution to America’s demand for energy. Why is Natural Gas Affordable? Affordability goes hand in hand with the fact that natural gas is abundant in America. As mentioned, the amount of natural gas used by America in 2016 amounts to 27.5 trillion cubic feet, yet an additional 800 trillion cubic feet is available at roughly the same price point. And, another 1,400 trillion cubic feet of natural gas is available at just a reasonable price point. Extraction > Production > Savings Advancements in natural gas extraction methods have resulted in an abundant supply of natural gas. Technology has increased production efficiency through both hydraulic fracturing (also commonly referred to as fracking) and directional/horizontal drilling. Improved production methods reduce costs, allowing producers to produce more natural gas and oil. Assuming that technological advancements within the industry continue over the next decade with access to additional resources, the estimated total end-use consumer cost of natural gas and electricity in the year 2030 is expected to drop from $654.8 billion to $588.9 billion. This 10.1% price decrease accounts for a savings $65.9 billion, nationally. Per household, this reflects a savings of $464. By the year 2040, end-use consumer costs of natural gas and electricity are estimated to drop 14.5%, or $100.6 billion. Per household, this reflects a significant savings of $655 per household.

Natural Gas is Reliable Why do we need natural gas? Natural gas works for America because it is a reliable source of energy. Think of all the times throughout the day that we rely on energy being conveniently and readily available. Every time you flip a switch to turn on the lights, press a button to turn on your computer, or turn a knob to power your stove, energy is used. As consumers, we demand that energy be available 24 hours a day, year round. But while energy use is constant, the amount of energy used is not always consistent. Consider, for example the different climates around the country and the fluctuations in energy needed to heat and cool homes throughout the year. Maintaining the supply to meet demand requires a balance between the energy that flows into the power grid, and the energy used. We need an efficient and flexible source of energy that keeps the lights on, even when the wind isn’t blowing or the sun isn’t shining. Natural gas is the right solution to meet these needs. The forecast for natural gas To say that natural gas is reliable touches on a few other key points, that it is abundant and affordable. In 2016, one-third of all electricity used in the US was produced by natural gas. And the outlook on natural gas is promising. America has an abundance of natural gas, meaning generations of resources that we can extract and produce at affordable costs.

What is Natural Gas? To define natural gas, we must to understand what it consists of, beyond an understanding that it comes from nature. Natural gas is made up of a mixture of four naturally occurring gases, all of which have different molecular structures. This mixture consists primarily of methane, which makes up 70-90% of natural gas along with ethane, butane and propane. These gases are a result of compacted heat and pressure from deceased animals buried deep under the Earth’s surface for millions of years. Natural gas is extracted from inside the Earth through natural gas drilling and alongside oil drills. Once extracted, the gas is combined with a liquid called crude oil – this is how we can convert natural gas into everyday energy. Why Use Natural Gas? Natural gas is a beneficial source of natural energy, offering advantages over other energy sources such as: • fewer impurities • less chemically complex • combustion results in less pollution • produces less carbon dioxide (which is the primary greenhouse gas), sulfur dioxide (primary precursor of acid rain), nitrogen oxides (primary precursor of smog) and particulate matter (affects health and visibility), than other energy sources • affordable • reliable, meaning it is available for extraction. Natural gas is also being as a clean energy source in the following ways: • making fertilizer for ethanol • generating power for homes and businesses • transportation on land and sea • electricity generation • making methane for hydrogen • used in most of our manufacturing products. Where is Natural Gas? Domestic natural gas production has grown over 20% in the past few years and America is now the world’s leading producer. It is estimated that America has at least a 100-year supply of natural gas. Natural gas is most abundant in states including Texas, Pennsylvania and Oklahoma. Fun Facts about Natural Gas • Natural gas is odorless, colorless, flammable and non-toxic. • Natural gas was first discovered when lighting strikes ignited gas that was seeping from the ground in the middle east between 6000 and 2000 BC. • In 1626, natural gas was found in America when French explorers discovered Native Americans igniting gases that were seeping out of Lake Erie. • A man-made volcano erupts in front of the MGM Mirage Hotel in Las Vegas every hour on the hour in the evenings and it is fueled with pina colada-scented natural gas.

Is natural gas a type of clean energy? One of the major benefits of natural gas is that it’s a type of clean energy, offering environmental benefits over other fossil fuels like coal that include reduced CO2 emissions. In fact, CO2 emissions from natural gas are half of those resulting from coal. The increased reliance on natural gas over the past few years has resulted in the lowest CO2 levels the power sector has seen in nearly three decades. The U.S. Energy Information Administration attributes this benefit to the use of natural gas for energy production. Use of natural gas over coal is credited for nearly two-thirds of reductions in CO2 emissions from years 2006 to 2014. But, the environmental benefits do not end with CO2 emissions. As a source of energy, the use of natural gas will reduce other emissions including: NOx SO2 PM Acid gasses Hg Non-Hg heavy metals In addition to its environmental benefits, natural gas is helping the United States toward economic-related environmental and energy sustainability goals. According to the United States Department of Energy, “The clean energy industry generates hundreds of billions in economic activity, and is expected to continue to grow rapidly in the coming years. There are tremendous economic opportunities for countries that invent, manufacture and export clean energy technologies.”

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.