The Role Natural Gas Can Play in Reducing U.S. and Global GHG Emissions

By Andrew Shaw

Earlier this month, the U.S. Energy Information Administration (“EIA”) released a report that found that energy-related carbon dioxide (“CO₂”) emissions fell in the first quarter of 2012 to their lowest level since 1992. Moreover, U.S. CO₂ emissions in the first quarter fell by almost 8% compared to the first quarter of 2011.

According to EIA, this significant decline is due to several factors, including abundant and affordable U.S. natural gas supplies. While there is continued debate about the amount of lifecycle emissions associated with shale gas development, the EIA report demonstrates that greater reliance on natural gas in the electricity sector is significantly contributing to decreased energy-related CO₂ emissions.

EIA also released another report this month detailing U.S. energy-related CO₂ emissions for 2011. The report found a 2.4% decrease in energy-related CO₂ emissions in 2011.  This decline occurred in a year in which natural gas’ market share of electricity generation increased by 3% from the previous year, while coal generation’s market share declined by 6%.  EIA’s report suggests that increased natural gas production “could play a continuing role” in future decreases of CO₂ emissions.

The impact of increased shale gas development is not just on U.S. CO₂ emissions.  In a New York Times op-ed this week, Michael Levi, a Senior Fellow for Energy and the Environment at the Council on Foreign Relations, argued that liquefied natural gas (“LNG”) exports could contribute to reduced global CO₂ emissions. Levi’s op-ed builds upon a recent report he published entitled a “A Strategy for U.S. Natural Gas Exports.” The report described some of the benefits of LNG exports, including increased reliance globally on natural gas. Specifically, Levi estimated that natural gas exports could result in “approximately 15 million tons of reduced global emissions for each billion cubic feet of daily natural gas exports.”

These reports underscore the opportunity presented by increased domestic natural gas production to not only enhance U.S. energy security but to also responsibly address climate change.