Promoters of competing fuels are quickly lining up to advocate their alternatives to oil in the latest Middle East crisis.
NATURAL GAS OPTION
Nicholas Bush, Natural Gas Supply Association president, said the U.S. could increase natural gas use to ease the effect of an oil supply shortfall.
"The natural gas industry can make an important contribution to cushioning the serious potential economic consequences of a significant shortfall of imported petroleum," Bush said.
About 2.5 tcf of gas-1.25 million b/d of oil equivalent-is available in storage for use.
Bush said, "We estimate the domestic gas producing industry is operating at about 80% or less of capacity but capable of reaching 90-92% of capacity if demand warrants. Such an increase would yield as much as 2 tcf (1 million b/d of oil equivalent) of additional gas supplies."
NGSA said President Bush and the secretary of Energy should urge dual-fuel capable facilities to choose gas and encourage gas storage to be filled to the maximum possible.
"Encouraging increased natural gas use and greater natural gas storage now in offpeak periods will help reduce potential problems that would exist if such efforts took place closer to the winter heating season," Bush said.
"Spot natural gas prices are beginning to rise somewhat in reaction to recent price increases in crude oil and oil products and would be likely to increase further if demand goes up."
George H. Lawrence, American Gas Association president, said, "The current turmoil in the Middle East has again put the spotlight on the danger of U.S. dependence on imported oil."
He said the U.S. immediately could offset 160,000 b/d of imported oil with increased natural gas use, moving up to 480,000 b/d equivalent within a year.
"This alone accounts for nearly two thirds of recent U.S. imports from Iraq and Kuwait," Lawrence said.
OTHER FUELS
SGI International, La Jolla, Calif., cited its LFC coal liquefaction process as a technology to advance the U.S. and worldwide goal of independence from energy pricing dictated by OPEC.
Cogeneration developer O'Brien Energy Systems, Philadelphia, sees increased demand for cogeneration as a result of higher prices. An O'Brien unit last week announced a joint venture with Dallas engineering firm Cosap Inc. to develop traditional and coalbed methane reserves for its existing and future cogeneration projects.
Propane marketers also cited their product as a candidate for increased motor fuel use in an oil supply crunch.
The Western Liquid Gas Association noted that 85% of U.S. LPG supplies come from domestic sources.
Detroit Edison said its total reliance on U.S. coal and nuclear power will enable it to supply electricity at stable prices "regardless of Middle East events." Its fuel mix in 1989 was only 1.4% oil and 0.4% gas.
Copyright 1990 Oil & Gas Journal. All Rights Reserved.
