Worldwide demand for natural gas is expected to significantly increase but resources appear adequate to meet the need. Converting resources to reserves however, poses myriad challenges. Environmental issues, more restrictive regulation, technical limitations, and financial and political risks all stand to inhibit exploitation of natural gas resources. Sooner or later, these constraints will come to bear in all corners of the globe. As in the past, new technology will be the key to meeting these challenges and allow the societal and monetary benefits of natural gas to be realized. For technology to appreciably impact our energy future it must be conceived and developed with these challenges in mind, resulting in a thoughtfully structured R&D program. Further, it will take government-private sector partnerships and in some instances, international alliances to realize our common goals for the world's cleanest burning fossil fuel - natural gas.
Natural gas is fast becoming the fuel of choice for many applications because of its environmental benefits, affordability, and efficiency of use. Barriers to full exploitation of natural gas exist nationally and globally, but developed countries may have a greater urgency for developing effective strategies to overcoming these impediments. In this paper a brief review of natural gas resources and projected consumption is provided followed by a general outline of the challenges that must be addressed in order for gas to be economically marketed. U.S. scenarios are cited to provide specificity and clarity. Technology advancement will be the cornerstone to resource development but effective R&D programs will require unparalleled cooperation across the industry and governments. The value of the U.S. natural gas R&D program is quantified, and a description of future efforts is provided.
The Significance of Natural Gas Globally, the consumption of natural gas is expected to double by 2020, to 4.59 tera- (T) m3 (162 Tcf). By contrast, overall energy demand is expected to rise by only 59 percent.1 The increase in gas demand represents an average annual growth rate of 3.2 percent with the most significant portion of the increase attributable to new gas-fired power generation. Most energy projections forecast that the consumption of natural gas in developing countries will rise at an even greater rate, i.e., greater than 5 percent per annum.1 Demand for natural gas in the U.S. is expected to experience similar growth in consumption for power generation with the gas share doubling to 32 percent by 2020. Overall, natural gas usage in the U.S. is projected to increase 50 percent, from 646 giga- (G) m3 (22.8 Tcf) in 2000 to 957 Gm3 (33.8 Tcf) in 2020.2 The global natural gas resource base appears adequate to meet projected demand, but significant challenges remain with respect to convertin
