America Must Build More Natural Gas Storage Capacity

It's tricky to present an index of the top 5 sports accomplishments without stepping on someone's toes, these need to be thought of as very impressive achievements, regardless of who your chosen athlete might be. The hourly caregivers sporting achievements in recent history:

1 - 1980 American Olympic Hockey Team

No person gave the teenage boys who had only played together a few days much chance contrary to the Soviets. The Russians were considered the best team while in the world. In 1979, they had shown their dominance by defeating the NHL All Stars 6-0. In the event the U.S. team went to the Olympic finals, it was just a query practically in most people's minds concerning how bad they would be defeated. Against all odds, they won 4-3. Sports Illustrated voted bingo since the greatest sports moment of the twentieth century.

2 - Jesse Owens 1936 Olympics

Adolph Hitler needed to show Germany's superiority in the Olympic Games when we were holding kept in Berlin in 1936. His basic lies and propaganda were packed with hatred for any individual rather than the white race. Jesse Owens assemble the nonsense to rest rather well by winning 4 gold medals up against the Fuehrer's athletes.

The skyline of Pittsburgh, Pa. at night. (AP Photo/Genme Pushkar)

ASSOCIATED PRESS

Lack Of New Natural Gas Storage Capacity

Natural gas of course is increasingly our go-to fuel to grow the economy, reduce greenhouse gas emissions, backup wind and solar, and be our essential energy source to export to a mostly poor and energy-deprived world.

This ongoing U.S. "Dash to Gas" ensures a known necessity for us: we need more geological sites to store natural gas to meet the ebb and flow of demand.

Since the shale revolution took flight in 2008, U.S. natural gas prices have remained low and stable (see Figure below).

While this is great for American families and businesses, it's made building new gas storage capacity less of a priority.

Literally, this reduced incentive for gas storage has been the only negative of the U.S. shale boom>

But, not building new storage capacity has been a logical decision.

Storage facilities are a primary tool to mitigate price risks and used by pipelines to maintain operational flexibility and system balance.

The spikes in pricing, particularly in the cold winter months when demand spikes, have greatly subsided.

A flatter price trend makes it harder for storage operations to make money, a business that is about "buying low and selling high when prices go up."

As a result, almost all pending new storage projects and capacity expansions have been delayed or canceled.

U.S. natural gas prices have been low and stable in the shale boom era since 2008.

Photo Credit: EIA

Meanwhile, U.S. natural gas production and use continue to surge to record heights every year (see Figure below).

The constant reality for the U.S. gas market and prices is record production colliding with record consumption.

Our domestic usage comes from more power and industrial demand mostly.

In the Shale-Era since 2008, U.S. gas production has increased 60%, demand is up nearly 35%: yet, gas storage capacity has grown just 14%.

Over the past decade, U.S. natural gas production and demand have surged but our capacity to store gas hasn't.

Data source: EIA; JTC

Wind And Solar Are Intermittent

Perhaps our most fundamental energy fact is that natural gas will continue to play a central role in the U.S. electric power system.

That's because as we continue to seek ways to cut greenhouse gas emissions, the harsh reality for some is that wind and solar are intermittent sources of power, unavailable most of the time (capacity factors only around 30% even on good days).

It's something that cannot simply be wished away: the intermittency of renewable generation will require flexible, fast-ramping generation.

As such, the obvious requirement to backup these renewables was, is, and will continue to be very flexible, economical natural gas peaking plants.

"Natural Gas Is The Flexibility Needed For More Wind And Solar."

Gas will be what provides electric grid reliability, namely via load and generation profile following, frequency regulation, backup power, and spinning reserves.

Obviously, battery storage is growing in importance, but these systems don't fully support the full range of flexibility needed, including for seasonal and daily variations.

Thus, batteries cannot displace gas-fired generation, which is uniquely suited to mitigate the intermittency of renewables.

It's no wonder then that EIA says gas will easily supply the most amount of incremental capacity in the coming decades, at 235,000 megawatts.

For perspective, this is a whopping 10 times more than what onshore wind will give us.

This all means that we are actually in the early stages of unprecedented growth in natural gas being produced and used in the U.S (see Figure below).

So, our power system itself could easily face severe supply constraints if no incremental infrastructure is specifically built for the electricity sector.

This clearly centers on building more sites to store natural gas.

For reference, depleted fields account for over 80% of working gas storage capacity.

U.S. natural gas production and demand are expected to continue to surge.

Data source: EIA; JTC

Rising Gas Exports

Besides the shale revolution itself, our LNG export boom to the world is probably the most transformative change for the U.S. gas market in its history.

This is a new dynamic that really kicked off back  in February 2016, and we will become the third largest seller this year and lead the market by 2024.

It will be U.S. suppliers along the Gulf Coast that will be called upon to support potential global supply disruptions.

This will surely extend utilization of the region’s storage facilities.

As our LNG suppliers are forced to react to international events (e.g., freezing cold winters in Asia that need gas for heating), the boom in exports will add a variability to the market that more U.S. gas storage will need to buffer.

In other words, there will be even greater portions of U.S. demand (and remember that exports are a baseload demand market) that cannot be regularly predicted.

This will make it harder on producers to plan ahead of time, making gas storage even more crucial to our market.

Without new gas storage capacity, our market could drastically (and needlessly) tighten>

Moreover, exports will be seasonal, making new capacity that much more vital.

In total, LNG exports are the driving force behind what could be a ~25 Bcf/d increase in U.S. gas demand over the next six to eight years.

And we should be encouraging all of this: gas exports offer us massive economic, environmental, and security benefits for us.

U.S. natural gas exports are a moral imperative, helping an overwhelmingly poor world get access to modern energy while also reducing greenhouse emissions.

"COP21 Means More Natural Gas and the U.S. Must Help."

In particular, as a newer major player in our gas market, Appalachia (WV. OH, PA), now producing nearly 40% of our gas, must see major new investments to not just build more pipelines but also to build the gas storage sites to meet the growing needs of Appalachia itself and the other states and even countries that are increasingly relying on it.

The good news?

The U.S. government is wisely prioritizing the gas storage issue: "Secretary Perry Announces Appalachian Ethane Storage Hub Report."

Please follow Jude on Twitter

>

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The skyline of Pittsburgh, Pa. at night. (AP Photo/Genme Pushkar)

ASSOCIATED PRESS

Lack Of New Natural Gas Storage Capacity

Natural gas of course is increasingly our go-to fuel to grow the economy, reduce greenhouse gas emissions, backup wind and solar, and be our essential energy source to export to a mostly poor and energy-deprived world.

This ongoing U.S. "Dash to Gas" ensures a known necessity for us: we need more geological sites to store natural gas to meet the ebb and flow of demand.

Since the shale revolution took flight in 2008, U.S. natural gas prices have remained low and stable (see Figure below).

While this is great for American families and businesses, it's made building new gas storage capacity less of a priority.

Literally, this reduced incentive for gas storage has been the only negative of the U.S. shale boom>

But, not building new storage capacity has been a logical decision.

Storage facilities are a primary tool to mitigate price risks and used by pipelines to maintain operational flexibility and system balance.

The spikes in pricing, particularly in the cold winter months when demand spikes, have greatly subsided.

A flatter price trend makes it harder for storage operations to make money, a business that is about "buying low and selling high when prices go up."

As a result, almost all pending new storage projects and capacity expansions have been delayed or canceled.

U.S. natural gas prices have been low and stable in the shale boom era since 2008.

Photo Credit: EIA

Meanwhile, U.S. natural gas production and use continue to surge to record heights every year (see Figure below).

The constant reality for the U.S. gas market and prices is record production colliding with record consumption.

Our domestic usage comes from more power and industrial demand mostly.

In the Shale-Era since 2008, U.S. gas production has increased 60%, demand is up nearly 35%: yet, gas storage capacity has grown just 14%.

Over the past decade, U.S. natural gas production and demand have surged but our capacity to store gas hasn't.

Data source: EIA; JTC

Wind And Solar Are Intermittent

Perhaps our most fundamental energy fact is that natural gas will continue to play a central role in the U.S. electric power system.

That's because as we continue to seek ways to cut greenhouse gas emissions, the harsh reality for some is that wind and solar are intermittent sources of power, unavailable most of the time (capacity factors only around 30% even on good days).

It's something that cannot simply be wished away: the intermittency of renewable generation will require flexible, fast-ramping generation.

As such, the obvious requirement to backup these renewables was, is, and will continue to be very flexible, economical natural gas peaking plants.

"Natural Gas Is The Flexibility Needed For More Wind And Solar."

Gas will be what provides electric grid reliability, namely via load and generation profile following, frequency regulation, backup power, and spinning reserves.

Obviously, battery storage is growing in importance, but these systems don't fully support the full range of flexibility needed, including for seasonal and daily variations.

Thus, batteries cannot displace gas-fired generation, which is uniquely suited to mitigate the intermittency of renewables.

It's no wonder then that EIA says gas will easily supply the most amount of incremental capacity in the coming decades, at 235,000 megawatts.

For perspective, this is a whopping 10 times more than what onshore wind will give us.

This all means that we are actually in the early stages of unprecedented growth in natural gas being produced and used in the U.S (see Figure below).

So, our power system itself could easily face severe supply constraints if no incremental infrastructure is specifically built for the electricity sector.

This clearly centers on building more sites to store natural gas.

For reference, depleted fields account for over 80% of working gas storage capacity.

U.S. natural gas production and demand are expected to continue to surge.

Data source: EIA; JTC

Rising Gas Exports

Besides the shale revolution itself, our LNG export boom to the world is probably the most transformative change for the U.S. gas market in its history.

This is a new dynamic that really kicked off back  in February 2016, and we will become the third largest seller this year and lead the market by 2024.

It will be U.S. suppliers along the Gulf Coast that will be called upon to support potential global supply disruptions.

This will surely extend utilization of the region’s storage facilities.

As our LNG suppliers are forced to react to international events (e.g., freezing cold winters in Asia that need gas for heating), the boom in exports will add a variability to the market that more U.S. gas storage will need to buffer.

In other words, there will be even greater portions of U.S. demand (and remember that exports are a baseload demand market) that cannot be regularly predicted.

This will make it harder on producers to plan ahead of time, making gas storage even more crucial to our market.

Without new gas storage capacity, our market could drastically (and needlessly) tighten>

Moreover, exports will be seasonal, making new capacity that much more vital.

In total, LNG exports are the driving force behind what could be a ~25 Bcf/d increase in U.S. gas demand over the next six to eight years.

And we should be encouraging all of this: gas exports offer us massive economic, environmental, and security benefits for us.

U.S. natural gas exports are a moral imperative, helping an overwhelmingly poor world get access to modern energy while also reducing greenhouse emissions.

"COP21 Means More Natural Gas and the U.S. Must Help."

In particular, as a newer major player in our gas market, Appalachia (WV. OH, PA), now producing nearly 40% of our gas, must see major new investments to not just build more pipelines but also to build the gas storage sites to meet the growing needs of Appalachia itself and the other states and even countries that are increasingly relying on it.

The good news?

The U.S. government is wisely prioritizing the gas storage issue: "Secretary Perry Announces Appalachian Ethane Storage Hub Report."

Please follow Jude on Twitter

3 - Secretariat's Triple Crown

The naysayers thought Secretariat would fade in the last and longest race from the Triple Crown. Many horses before tried well inside Kentucky Derby as well as the Preakness, but gets hotter found the Belmont Stakes they had faltered. The great horse perceived to nourish themselves on this and left some other competitor while in the dust in the single most lopsided wins from the good reputation for the sport.

4 - Wilt Chamberlain's 100 Point Game

That it was on March 2, 1962 in Hershey, Pennsylvania. We have witnessed many great players with amazing performances subsequently, but none of them have approached this feat. The story goes by purchasing 46 seconds left, Wilt the Stilt performed a slam-dunk off an alley-oop hitting the century mark. Above 200 of your paying spectators stormed down through the stands to try to touch the super star. Using the NBA, the final seconds of the overall game were never played.

5 - Michael Phelps 8 Gold Medals

Everyone felt that Mark Spitz had accomplished what hardly any other man could ever want to achieve in reference to his 7 gold medals won in swimming. From the Summer Olympics of 2008, Michael Phelps but not only won a different, but he set 7 new records while in the process. Obviously, there's always new accomplishments being stated in the industry of sports and also the field is spacious choosing achievements with daily that passes.

Source : https://www.forbes.com/sites/judeclemente/2019/05/26/america-must-build-more-natural-gas-storage-capacity/

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America Must Build More Natural Gas Storage Capacity

Source:Forbes

America Must Build More Natural Gas Storage Capacity

America Must Build More Natural Gas Storage Capacity

Source:T&D

America Must Build More Natural Gas Storage Capacity