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United States of America

Table of Contents
  1. 1. Introduction
  2. 2. Key Statistics
    1. 2.1. Unconventional gas
  3. 3. Gas Demand
    1. 3.1. Total Primary Energy Consumption per fuel
    2. 3.2. Gas demand per sector
  4. 4. Gas Supply
    1. 4.1. Gas reserves
    2. 4.2. Exploration and production
    3. 4.3. Gas Imports
    4. 4.4. Gas Exports
  5. 5. Gas Infrastructure
    1. 5.1. Gas Grid
    2. 5.2. LNG
    3. 5.3. Storage
  6. 6. Gas Market Regulation
    1. 6.1. Upstream
    2. 6.2. Networks
    3. 6.3. Downstream

1. Introduction

The United States is a federal constitutional republic situated in central North America, which comprises fifty states and a The United States is a federal constitutional republic situated in central North America, which comprises of fifty states and a federal district. The country is bordered by the Pacific and Atlantic Oceans, by Canada to the north and Mexico to the south. The state of Alaska is in the northwest of the continent. The state of Hawaii is an archipelago in the mid-Pacific. The United States is the third largest country in the world with a total surface of 9.83 million square kilometers (3.79 million square mile), and is inhabited by 313 million people (2012 estimate). The country has a capitalist mixed economy and it has the largest nominal GDP in the world. The US is the largest importer of goods and the third largest exporter, although exports per capita are relatively low. Top trading partners of the United States are Canada, China, Mexico, Japan, and Germany.[1] The United States is the largest gas consumer in the world, consuming 683,371 mcm of natural gas in 2010. The United States has a natural gas supply per capita of 1.818 toe. The United States holds substantial natural gas reserves, totaling 4.4% of the world reserves of natural gas in 2010. [2]  

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2. Key Statistics

Basic Gas Facts - US
Basic Gas Facts 2006 2007 2008 2009 2010e
Gas reserves (bcm) - - 7468 7712 8368
Gas production (mcm) 524295 545880 571121 583093 612921
Gas consumption (mcm) 614041 654199 658997 646788 683371
Gas imports (mcm) 118542 130473 112818 106225 105815
imports pipeline (mcm) - 108645 102859 93428 93610
imports LNG (mcm) 16524 21828 9959 12797 12205
import dependency (%)* 15.97% 16.38% 12.98% 11.73% 10.77%
Gas exports (mcm) 20501 23290 27276 30366 32190
Natural gas supply per capita (toe) 1.679 1.797 1.775 1.737 1.818
Technically recoverable shale gas resources (bcm) .. .. .. 24411 ..
Coal Bed Methane reserves (bcm)** .. 619.4 .. .. ..
c = confidential; - = nill; ..= not available
* Imports dependency of natural gas = (imports - exports) / consumption
**Proven & Probable (2P); U.S. Environmental Protection Agency, Coalbed Methane Outreach Program
Sources: IEA Natural Gas Information 2011, Global Methane Initiative, US Energy Information Administration

[1]

Basic Energy Facts - US
Basic Energy Facts 2006 2007 2008 2009 2010e
Total Energy Consumption (mtoe) 2302.8 2339.34 2283.72 2162.92 2234.99
CO2 Emissions, energy-related (Mt) .. 5769.31 5595.92 5195.02 ..
CO2 intensity, energy-related (tCO2/toe) .. 2.47 2.45 2.4 ..
Energy consumption per capita (toe/cap) 8.48 8.57 8.33  .. ..
CO2 per capita, energy-related (tCO2/cap) .. 19.1 18.38 16.9 ..
c = confidential; - = nill; ..= not available
Sources: IEA Natural Gas Information 2011 & EIA International Energy Statistics

[1], [2]

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2.1. Unconventional gas

The US has a large reserve of unconventional resources. Total coalbed methane resources are estimated at 620 bcm. The US is the leading producer of coal seam gas. Total production in 2007 was estimated at 49,668 mcm.[1] The US possess the second-largest reserve of shale gas, next to China. In recent years, the US started producing natural gas from shale reserves, making it less dependent from foreign energy supplies.[2]  

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3. Gas Demand

This section explores total primary energy consumption and gas demand by sector for the US.

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3.1. Total Primary Energy Consumption per fuel

In 2010, The United States’ TPEC amounted to 2,234.99 mtoe, a 3.3% increase compared to 2009. In 2010, oil accounted for 807.94 mtoe while coal and gas accounted for 513.00 mtoe and 564.29 mtoe respectively. Other sectors accounted for 349.76 mtoe.  [1]

*other: nuclear, hydro, geothermal, solar, combustible and renewable waste

[1]

*other: nuclear, hydro, geothermal, solar, combustible and renewable waste

[1]

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3.2. Gas demand per sector

In 2010 the United States consumed a total of 683,371 mcm of natural gas, a 5.7% increase compared to gas consumption in 2009, which was 646,788 mcm. That in turn was a 1.85% decrease compared to natural gas consumption in 2008, when it yielded 658,997 mcm. In 2009, 210,340 mcm were used for transformation and 128,772 mcm for the industry while 222,656 mcm was consumed by other sectors.[1] Transformation includes the generation of electricity, while the demand from the ‘Energy Sector’ refers to gas used for the extraction of coal, oil, and gas and gas used in refineries, coke ovens and gas works.

*other: commerce and public, residential, agriculture, non-specified

[1]

*other: commerce and public, residential, agriculture, non-specified

[1]

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4. Gas Supply

This section deals with gas reserves, exploration & production, gas imports and gas exports

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4.1. Gas reserves

The United States holds the fourth largest conventional gas reserves in the world. It hosts approximately 4.4% of the world’s total reserves: 8,364 bcm of natural gas at the end of 2010.  [1]

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4.2. Exploration and production

In 2010 the US produced 612,621 bcm. The reserves-to-production ratio for the United States is 13.7 years, [1] slightly lower than the EU’s average RP ratio of 14.0 years.[2]  

*Reserves-to-production (R/P) ratio – If the reserves remaining at the end of any year are divided by the production in that year, the result is the length of time that those remaining reserves would last if production were to continue at that rate.  

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4.3. Gas Imports

Imports by country - US
By country of origin (in mcm) 2006 2007 2008 2009 2010 %Total 2010
Canada 101657 107114 101632 92627 92761 87.66%
Algeria 494 2189 - - - -
Mexico 361 1531 1227 801 849 0.80%
Norway - - 421 830 737 0.70%
Egypt 3385 3245 1553 4543 2067 1.95%
Nigeria 1622 2691 341 377 1182 1.12%
Peru - - - - 454 0.43%
Qatar - 520 88 359 1291 1.22%
Trinidad & Tobago 11023 12679 7556 6688 5373 5.08%
Yemen - - - - 1101 1.04%
Other - 504 - - - -
Total 118542 130473 112818 106225 105815 100%
%Total Consumption 19.31% 19.94% 17.12% 16.42% 15.48% -
c = confidential; - = nill; ..= not available
Source: Natural gas information 2011 & OECD/IEA, 2011

[1]

Imports by transport type - US
By transport type (in mcm) 2006 2007 2008 2009 2010 %Total 2010
Pipeline imports 102018 108645 102859 93428 93610 88%
LNG imports 16524 21828 9959 12797 12205 12%
Total 118542 130473 112818 106225 105815 100%
c = confidential; - = nill; ..= not available
Source: Natural gas information 2011 & OECD/IEA, 2011

[1]

In 2010, gas imports account for 15.5% of the total volumes of consumed gas, signaling a relatively low dependence on imports, although the United States is the largest importer of natural gas in the world in absolute terms. Gas is imported both by pipeline and by LNG ships. Most of the gas is imported from Canada.

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4.4. Gas Exports

Exports by country - US
By country of destination (in mcm) 2006 2007 2008 2009 2010 %Total 2010
Canada 9658 13654 15819 19839 20919 64.99%
Korea - - - 77 334 1.04%
Japan 1721 1371 1109 865 932 2.90%
Mexico 9122 8265 10348 9585 9443 29.34%
Spain - - - - 117 0.36%
UK - - - - 271 0.84%
Other - - - - 174 0.54%
Total 20501 23290 27276 30366 32190 100%
%Total Production 3.91% 4.27% 4.78% 5.21% 5.25% -
c = confidential; - = nill; ..= not available
Source: Natural gas information 2011 & OECD/IEA, 2011

[1]

The major export markets for the US are Canada and Mexico. In 2010, the US exported 32,190 mcm, a 6% increase compared to the previous year, when the US exported 30,366 mcm.

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5. Gas Infrastructure

This section deals with the gas grid, LNG terminals and storage facilities.

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5.1. Gas Grid

Pipelines

Most of the interstate, intrastate and offshore pipelines are owned and operated by publicly held companies.[1] The Federal Electricity Regulatory Commission (FERC) removed the barriers to competition in 1992 by letting firms unbundle their gathering, transportation and storage services – that is, allowing them to price these services separately. Other FERC actions revised transportation rate structures, which led to higher pipeline-system efficieny, lower shipping costs and more effective allocation of pipeline capacity. Operators still face regulatory hurdles in siting new pipelines and in meeting environmental regulations. Pipeline deregulation also impacted the operations of local gas distribution companies (LDCs). In each state, a “public utility commission” has authority over LDC operations.  [2]  

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5.2. LNG

Currently, there are eleven LNG regasification facilities and one LNG liquefaction plant. It is considered to equip regasification facilities with equipment to liquefy gas as well. Next to the existing LNG facilities, many new facilities have been proposed and some are already under construction.  [1], [2]

LNG - US
Site Storage - Regasification - - Owner Operator TPA Start-up Status
- # Tanks Storage cap* #Vaporizers Max hourly cap** Nom.cap*** - - - - -
Everett, AK 2 155 4 .. 7.3 GDF Suez Domac .. .. E
Cove Point, MD 7 700 25 .. 19.8 Dominion Cove Point LNG .. .. E
Elba Island, GA 5 535 11 .. 17.2 El paso Southern LNG .. .. E
Lake Charles, LA 4 425 14 .. 25.6 Southern Union Trunkline LNG .. .. E
Gulf Gateway 1 150 .. .. 4.9 Excelerate Energy Gulf Gateway Energy Bridge .. .. E
Northeast Gateway 1 150 .. .. 4.9 Excelerate Energy Northeast Gateway .. .. E
Freeport, TX**** 2 331 7 .. 19 Cheniere/Freeport LNG Dev. .. .. .. E
Sabine, LA**** 3 480 16 .. 28.5 Cheniere/Sabine Pass LNG .. .. .. E
Cameron LNG**** 3 480 10 .. 16.4 Sempra Cameron LNG .. .. E
Neptune LNG**** 2 290 .. .. 4.1 GDF Suez Neptune LNG .. .. E
Sabine Pass, TX (phase 1 & 2)**** 3 480 16 .. 28.5 ExxonMobil Golden Pass .. .. E
c = confidential; - = nill; ..= not available
E = existing; A = approved; P = proposed
TPA: Regulated ( R) - Negotiated (N) - Hybrid (H) - Not Applicable (X)
* LNG storage capacity in m3 x1000 in LNG
**max. hourly capacity in m3(N)x1000/hour.
***nominal annual capacity in bm3(N)/y
****Authorized to / Potentially to re-export deliverd LNG
Sources: Federal Energy Regulatory Commission & NGI 2011

[1], [2]

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5.3. Storage

During 2010 there were 403 operational storage facilities in the United States with a combined technical storage capacity of 123,740 mcm.

Storage existing - US
Nr. Region Number of sites Storage Capacity (mcm) Withdraw Injection (mcm/day) TPA Type
- - - - (mcm/day) - - -
1 US East 38 9352 .. .. .. Aquifer
- - 216 55396 .. .. .. Depleted Field
- - 4 223 .. .. .. Salt Cavity
2 US West 5 914 .. .. .. Aquifer
- - 41 18376 .. .. .. Depleted Field
- - - - - - - Salt Cavity
3 Producing 69 31797 .. .. .. Depleted Field
- - 30 7682 .. .. .. Salt Cavity
- - - - - - - Aquifer
- Total 403 123740 - - - -
TPA: Regulated ( R) - Negotiated (N) - Hybrid (H) - Not Applicable (X)
.. = not available, - = nill
Source: IEA Natural Gas Information 2011

[1]

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6. Gas Market Regulation

This section deals with the gas market regulation in upstream, the transmission grid and downstream.

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6.1. Upstream

More than 500 natural gas processing plants are currently operational in the United States, primarily located near major gas and oil producing areas of the Southwest and the Rocky Mountain States. In addition to that, more than half of the plants are located convenient to the Federal offshore, Texas, and Louisiana. Deregulation of the United States gas market started in 1978, as the Natural Gas Policy Act set the stage for phased decontrol of wellhead prices. In the mid-1980s, the Federal Energy Regulatory Commission (FERC) took action to reduce energy costs and help improve the competitive position of natural gas against low-priced oil. Before the 1990s gas and oil companies primarily owned the natural gas processing plants. Between 1995 and 2004, however, the types of companies owning and/or operating the processing plants shifted from primarily oil and gas producers to midstream companies. As a result, in 2004, midstream operating companies such as Duke Energy Field Services (54 plants), Enterprise Products Operating LP (26 plants), Targa resources (21 plants) and BP PLC (13 plants) dominate the market. [1]  

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6.2. Networks

The Federal Electricity Regulatory Commission (FERC) removed the barriers to competition in 1992 by letting firms unbundle their gathering, transportation and storage services – that is, allowing them to price these services separately. Other FERC actions revised transportation rate structures, which led to higher pipeline-system efficiency, lower shipping costs and more effective allocation of pipeline capacity. Operators still face regulatory hurdles in siting new pipelines and in meeting environmental regulations. Pipeline deregulation also impacted the operations of local gas distribution companies (LDCs). In each state, a “public utility commission” has authority over LDC operations. [1]  

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6.3. Downstream

The US market is characterized by a large number of distribution companies that vary in size. The larger distribution companies are mostly publicly held stock companies, whereas many smaller companies are owned and operated by municipalities. Natural gas distributing are not allowed to earn a profit on the sale of gas; instead they earn revenue from the transportation and distribution charges, which is regulated at state level. [1]  

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JPmmckANvgF

Wow, this is in every rseepct what I needed to know.

Jacie

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