Natural gas offers numerous advantages for businesses, including reliability, flexibility, and a substantial reduction in carbon emissions compared to other non-renewable energy sources. As a clean-burning option, it helps meet the rising energy demands while simultaneously supporting environmental protection efforts. Its role in shaping our energy future is becoming increasingly significant, offering diverse benefits that are key to reducing emissions and driving economic growth.
Natural gas is a non-renewable, colourless, and odourless hydrocarbon that burns cleanly and efficiently. Its applications range from electricity generation to heating and transportation fuel. As James Speight explains in his book Shale Oil and Gas Production Processes, natural gas is composed primarily of methane but also contains small amounts of other hydrocarbons and compounds like carbon dioxide and nitrogen. It is flammable but non-toxic, and its high ignition temperature and narrow flammability range make it one of the safest fossil fuels in use today.
One of the primary benefits of natural gas is its ability to support the faster adoption of renewable energy sources. While renewable energy like solar or wind can be unreliable due to fluctuating weather conditions, natural gas provides a stable backup that ensures a continuous energy supply. This makes it an essential partner in the transition towards a greener energy infrastructure for businesses, allowing them to integrate renewable technologies more smoothly.
Economically, natural gas plays a critical role in keeping production costs manageable. It is more affordable than many other energy alternatives, which helps businesses maintain competitive pricing for their goods and services. At the broader economic level, natural gas has a substantial impact, especially within the European Union, where it is the second-largest energy source. In 2021, the use of natural gas in the EU increased by 4%, with significant portions allocated to heat generation and electricity production.
Natural gas vehicles (NGVs) are another area where businesses can benefit from both economic and environmental gains. These vehicles emit fewer greenhouse gases and pollutants compared to those powered by gasoline or diesel. They also reduce the dependence on oil, contributing to cleaner air and a lower carbon footprint.
The environmental benefits of natural gas are undeniable. As the cleanest burning hydrocarbon, natural gas emits far less CO2 than coal-fired power plants. This characteristic makes it an ideal bridge fuel in the transition from fossil fuels to renewable energy, as it allows businesses to significantly cut their emissions without sacrificing performance or reliability. Natural gas is, therefore, crucial for countries aiming to reduce their carbon footprint while maintaining a robust energy supply.
Energy security is another significant benefit. With natural gas, countries can diversify their energy sources, ensuring that they are not overly dependent on any single resource. This flexibility allows businesses to adjust their energy consumption based on price fluctuations, economic needs, or environmental goals. Although the EU is heavily reliant on natural gas imports, it remains a crucial component of its energy mix, contributing to overall energy security and stability.
In the transportation sector, natural gas offers multiple advantages, particularly in terms of reducing emissions and lowering operating costs. For countries with domestic supplies of natural gas, it presents an opportunity to reduce dependency on foreign energy sources and support local economies while contributing to a cleaner environment.
Environmentally, natural gas stands out compared to other non-renewable energy sources. The US Energy Information Administration points out that burning natural gas produces fewer emissions of pollutants and carbon dioxide than coal or petroleum, making it a more sustainable option for energy production.
Natural gas is an essential resource that businesses can leverage for both environmental and economic benefits. It helps reduce operational costs, minimises environmental impact, and strengthens public perception. By incorporating natural gas into their energy strategies, businesses not only contribute to a more sustainable future but also ensure a cleaner, greener tomorrow.
Diversified Energy Company plc (LON:DEC) is an independent energy company engaged in the production, marketing, transportation and retirement of primarily natural gas and natural gas liquids related to its U.S. onshore upstream and midstream assets.
