Natural gas is a nonrenewable energy source that is one of the biggest components of the world's energy supply. It is a fossil fuel composed mainly of methane (approximately 80%); roughly 8% is composed of ethane, another 8% carbon dioxide and other small amounts of propane and butane. It is nearly undetectable in its pure form, but when burned it emits a high level of energy. Natural gas is used in industrial, commercial and residential sectors. Typically, we use this same natural gas to generate electricity, provide energy to our homes in order to heat our homes and cook. In the industrial sector, natural gas is used to produce steel, glass, paper, clothing and electricity, among other things.

Widespread use of natural gas started in the mid-1800s, but only at a regional level. Its use in a large scale was restricted because of transportation constraints. Before 1950, the natural gas industry belonged solely to the U.S. with 90% of the world consumption of natural gas at the time came from the U.S., but an international market grew with each country making discoveries and countries having to work together to make the production process of natural gas function properly.

Like coal, natural gas is a fossil fuel, or remains of plants, animals, and microorganisms that lived millions of years ago. Fossil fuel was formed when organic matter, or the remains of once living things, is compressed deep in the earth at very high pressure for a very long period of time. This is called thermogenic methane. This organic matter is covered in mud and other sediments. Through time, more and more sediments and debris accumulate over the organic particles. Naturally, with so much pressure put on the organic matter, it is compressed. The compression, mixed with the high levels of temperature in the earth, break down the carbon bonds in the matter. The deeper into the earth, the more natural gas will be found, because natural gas is created at higher temperatures.

Another way natural gas can be formed is through the transformation of organic matter by tiny microorganisms. These microorganisms are usually found near the surface of the earth that lack oxygen. As opposed to thermogenic methane, this matter is called biogenic methane. These same microorganisms also live in the intestines of most living creatures. This kind of methane is usually lost into the atmosphere because its formation takes place close to earth's surface, without much pressure to trap it.

Finally, the last way in which natural gas and methane may be formed is through gases found very deep in the earth, where there are carbon molecules and hydrogen-rich gases. When these gases rise closer to earth's surface, they link with minerals found a little bit closer to earth's surface. This linkage could result in different compounds and elements like carbon dioxide and nitrogen, but when the link is under high pressure, they form methane deposits.

There is a complex process associated with the production of natural gas in the U.S. Once the natural gas is extracted from underneath the earth, it goes through a refining process to remove other gases and substances that come with it. A demand exists for some of the substances removed from the gas like propane and butane, so it is commonly sold separately. Once refined, it is transmitted to its point of use through a complex system of pipelines thousands of miles long and located throughout the U.S.

Over the past several years, carbon dioxide emission levels have been rising all over the world. The Federal Energy Information Administration has shown that world carbon dioxide emissions from the flaring and consumption of natural gas alone have been steadily increasing since 1980, and continue to increase without any drops occurring in the foreseeable future. Some of the changes in numbers are alarming, as our use of it is rising. Not only is the world as a whole showing increasing numbers, but practically every continent shows increases of carbon dioxide emissions from natural gas since 1980.

In 1980, carbon emissions from natural gas in North America were approximately 1.2 billion metric tons of carbon dioxide, most of it emitted from the U.S. (1.09 billion). Today, that number is roughly 1.5 billion, with the U.S. producing most of it (1.2 billion). The numbers are a bit lower in Europe. In 1980, emissions were roughly 561 million. Today, the number is around 1.1 billion.

But pollution estimates could be worse if those who produced natural gas would instead have resorted to the much cheaper coal. Natural gas is the cleanest of all fossil fuels, emitting less sulfur, carbon and nitrogen than oil or coal. Coal contains a higher carbon ratio and higher nitrogen and sulfur contents than does natural gas.

Natural gas is considered a much safer fossil fuel than coal so much so that companies like GreatPoint Energy and EnergyQuest are developing ways to convert coal into a natural gas that would sell for a lot less (4$ per million British Thermal Units) than normal natural gas sells for today ($7 per million BTUs). The carbon dioxide produced from the conversion process gets trapped in the plants and won't be emitted into the atmosphere.

In 1997, the EPA and the Gas Research Institute conducted a study to find out if the reduction in the carbon dioxide emissions from expanded use of natural gas would be offset by a possible increase in emissions of methane, a component of natural gas. The study found that the reduction in emissions from natural gas use far outweighs the effects of methane emissions, meaning that natural gas is still a much safer alternative.

As is commonly the case with fuels, the storage and transportation process of natural gas can also have lingering effects on the environment. A great part of natural gas is made up of methane, a greenhouse gas, which sometimes leaks into the atmosphere from wells, storage tanks and pipelines.

Natural gas is projected to be the fastest growing major source of primary energy in the next few decades, surpassing coal. Global consumption will increase two-fold by 2030. By 2050, it has been estimated that natural gas can even surpass coal to be the number one source. In the short run, it is expected that natural gas demand will rise from 1.3% to 2% annually. At today's rate of consumption, natural gas availability should last about 130 years. Areas in North America will provide the U.S. with 75% long-term needs, but demand is rising. Even new gas supply sources from the Rockies and Alaska probably won't be enough. In addition, there are barriers to natural gas development, but they are slowly diminishing. A high amount of gas resources is located in areas where there is not much demand for it. As a result, trade has already accounted for 25% of the gas consumption up to this point.

The International Energy Agency (IEA) has estimated that about $3 trillion dollars in investment will be needed to satisfy the upcoming demand for natural gas. The money would be needed for infrastructure to handle the supply, transportation methods, exploration and production, among other things. The investment figure gives a glimpse of what kind of demand that the natural gas industry should be expecting. The global community is showing a lot of interest in natural gas because of rising environmental concerns. The industry is growing rapidly, and government deregulation has made it easier for the industry to progress and thrive. In order to satisfy a growing demand for the blooming natural gas industry, a union similar to the oil cartel is required to keep transportation, costs and other potential barriers in order. In his book, Natural Gas and Geopolitics, David Victor states, "an integrated global gas market is emerging, in which events in any individual region or country will affect all regions."

Additional Sources:

Natural Gas and Petroleum

The American Gas Association. A trade group that advocates on behalf of US natural gas companies.

The Natural Gas Information and Educational Resources website. This site is the result of an industry-wide collaborative effort sponsored by the Natural Gas Supply Association (NGSA), the Independent Petroleum Association of American (IPAA), and the National Ocean Industries Association (NOIA).

The American Petroleum Institute. The American Petroleum Institute is the primary trade association representing the oil and natural gas industry in the United States. Its membership includes more than 400 corporations involved in all aspects of the oil and gas industry.

National Petroleum Council. The National Petroleum Council (NPC), a federally chartered and privately funded advisory committee, was established in 1946 at the request of President Harry S. Truman.

World Petroleum Congress. The World Petroleum Congress was founded in London in 1933. It provides a forum for discussing the issues facing the oil industry on a worldwide basis and is strictly non-political.