July 2009 Vol. 236 No. 7

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AGA, GTI Report More Direct Use of Natural Gas Will Cut Costs, Emissions

A recent study by the Gas Technology Institute reports the increased “direct use” of natural gas in homes and businesses will reduce energy consumption, consumer energy costs and national CO2 emissions.

Direct use refers to using natural gas in a residential or commercial capacity, such as space heating, cooking, heating water or drying clothes.

The AGA is publicizing the study, “Validation of Direct Natural Gas Use to Reduce CO2 Emissions.” It underlines the finding that when a societal subsidy such as a rebate or a tax credit is put in place to encourage the use of natural gas appliances, significant savings in energy costs, CO2 emissions, energy use, and electricity use can be achieved.

“Natural gas is the cleanest burning of all fossil fuels, and its delivery from the source of production to the site of end use is extremely efficient and environmentally friendly,” said David Parker, president and CEO of AGA. “This study affirms that subsidies that incentivize consumers to use natural gas directly in their homes and businesses result in major cost savings, while lowering carbon output.”

When compared to the Energy Information Administration’s (EIA) 2008 Annual Energy Outlook (AEO), the AGA reports that societal subsidies would provide the following benefits by 2030:

  • 1.9 Quads energy savings per year (enough energy to heat 35 million American homes for a year)
  • 96 million metric tons CO2 emission reduction per year (equivalent to taking 16 million cars off the road)
  • $213 billion cumulative consumer savings

These impacts exceed comparable projected subsidies to electric end-use technologies.

“Our country is striving to find an affordable energy solution for future generations. Not only is natural gas abundant, but also the direct use of natural gas outshines all other applications in terms of cost and environmental footprint. The evidence clearly shows that natural gas is a win for consumers and should be a major player the U.S. energy equation,” said Parker.

The GTI’s full report is available for download here at the AGA’s website.

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