Richard Meyer Typical natural gas households emit 44 percent less greenhouse gases than an all-electric

When we think about building newer, greener households, there is a tendency to focus on the house going all electric. After all, if a house does not burn any fossil fuels, it follows that the carbon footprint of the household should be zero, right?

This kind of carbon accounting, however, fails to include any greenhouse gas emissions that occurred prior to the point of consumption. When you use electricity to watch TV or heat your home, the energy was generated from an “upstream” fuel source. This generation and subsequent transmission to your house means that every time you turn on a light, there could be associated greenhouse gas emissions.

Let’s look at the U.S. electricity mix. In 2011, more than 42 percent of all electric energy was generated from coal, the most carbon-intensive fossil fuel used for electric generation. Natural gas, which has a lighter greenhouse gas footprint, represents 20 percent of the electric energy generated last year. The remaining generation came from nuclear (19 percent), hydroelectric (8 percent), and renewables like solar and wind (less than 5 percent). But what does this mean for greenhouse gas emissions related to home energy use?

In a recent report, Squeezing Every BTU, we tried to calculate exactly what the greenhouse gas impact of a typical new home might be. The Policy Analysis team here at AGA modeled an “average” household by calculating what energy would be required to heat the home, for water heating, for cooking and for clothes drying. We assumed an average sized home in a moderate climate, and the appliances all met the minimum standards for efficiency. For the electric home, we assumed the house used an electric heat pump for its winter heating needs.

The next step was to calculate the amount of fuel required to meet these energy requirements. We considered natural gas, electricity, fuel oil and propane. The final step calculated the greenhouse gas impact from this fuel usage. We made sure to include all “upstream” emissions from the production of the primary fuel to its transportation (truck, rail, pipeline), as well as any emissions associated with electric generation, and eventually emissions related to the final delivery to the consumer.

By combining all the upstream source emissions with the end-use fuel consumption, we were able to evaluate the full-fuel-cycle impact of a typical household’s energy requirements on greenhouse gas emissions. This is what we found.

Typical natural gas households graph1 Typical natural gas households emit 44 percent less greenhouse gases than an all electric

Full-fuel-cycle Greenhouse Gas Emissions of a Typical Household Fuel used for space heating, water heating, cooking, and clothes drying

On average, a typical household using natural gas performs the best. The natural gas household modeled had four percent fewer greenhouse gas emissions compared with an all-electric household. Compared to fuel oil and propane respectively, the natural gas household emitted 27 percent and 16 percent fewer greenhouse gases, . The figure above captures the total amount of greenhouse gases associated with using the specified energy source for space heating, water heating, cooking, and clothes drying, as measured in metric tons of carbon dioxide equivalent per household per year

The bottom line is that the direct use of natural gas is and should be seen as a carbon mitigation tool. Replacing less efficient and more carbon intensive equipment with high efficiency natural gas can lead to substantial decreases in greenhouse gases. With natural gas prices dropping, consumers can save money and reduce their carbon footprint by using natural gas directly in the home.

For more on this and other market and policy issues related to the direct use of natural gas, see AGA’s recent report Squeezing Every BTU: Natural Gas Direct Use Opportunities and Challenges.

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Jake Rubin Big Automakers Pick Up on Low Natural Gas Prices

On Monday, Chevrolet and GMC announced that they will build the bi-fuel 2013 Chevrolet Silverado and GMC Sierra 2500 HD extended cab pickup trucks. On Tuesday, Ram Truck announced that they will manufacture a factory-built compressed natural gas-powered (CNG) pickup truck.  GE and Chesapeake Energy today announced an alliance aimed at encouraging the adoption of natural gas as a transportation fuel by developing infrastructure for compressed natural gas, liquefied natural gas and natural gas home-fueling technologies.

High gas prices are changing the gasoline-powered automobile market and once again natural gas is the right fuel at the right place at the right time.

Dave McCurdy is the president and CEO of the American Gas Association and former president and CEO of the Alliance of Automobile Manufacturers.

“These manufacturers understand the tremendous market potential for natural gas vehicles,” McCurdy said.  “The retail price of compressed natural gas averages about half the cost of gasoline, and everyone that buys natural gas vehicles is going to see it pay-off at the pump.”

“The bi-fuel 2013 Chevrolet Silverado, GMC Sierra 2500 HD extended cab, and Chrysler Ram 2500 HD pickup trucks announced this week will give fleet consumers what they want – clean, reliable, cost-efficient vehicles.

“America’s natural gas utilities encouraged these manufacturers to bring bi-fuel vehicles to market and are ready to support them by purchasing these vehicles in our own fleets.  We’re confident that fleet customers from a wide variety of businesses will take advantage of the same opportunity and want to purchase these new CNG models.”

 

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Richard Meyer Natural Gas Market Indicators

Mild temperatures have trumped all other market conditions this winter, even with a flattening of production growth for the first time in five years. Short-term gas demand for residential and commercial heating has lessened and gas-to-power burn has dropped from the higher volumes seen in mid-February. Ratcheting requirements could still pull more gas from storage into a market that is already awash in supply, but the demand equation, and ultimately supply-demand balance in the market, will be a function of how quickly winter recedes and spring arrives.

Visit this link to download the full Natural Gas Market Indicators.  Topics covered include: Reported Prices, Weather, Working Gas in Underground Storage, Shale Gas, Rig Counts, Pipeline Imports and Exports, and LNG Markets.

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Jake Rubin Dave’s Playbook

AGA members attend our many conferences and summits to share best practices on everything from pipeline safety to enhancing shareholder value.  AGA shares best practices with other trade associations as well.

In an article entitled “Dave’s Playbook”, Association and Non-Profit BISNOW profiled AGA President & CEO Dave McCurdy and discussed The Playbook:

Dave and his board members also use it in speeches and Powerpoints. He used similar playbooks at the Electronic Industries Alliance and the Alliance of Automobile Manufacturers. He tells us it helps create message consistency and establish a common set of facts for the industry. It also forces the organization to make sure its message and info are up to date and articulate its priorities: “When I came here, there was tremendous information throughout the organization and the industry; I just didn’t think we had it in one place.” Now it is.

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