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  • Home
  • About
    • About the Center >
      • The Next Generation of Shale Gas
    • Our Team
    • SGICC News / Press Releases
  • Partners & Advisors
    • Institutional Partners
    • Research Partners
  • Funding Opportunities
    • 2017 Shale Gas Innovation Contest
    • Technology Showcase 2017
    • DCED Grant Award >
      • DCED Grant White Papers
      • Grant Award Announcement Doc
    • Funding through the BFTP Program
    • Archived Contests >
      • 2016 Shale Gas Innovation Contest
      • Technology Showcase 2015
      • 2015 Shale Gas Innovation Contest >
        • 2015 Innovation Contest & Workshop
      • 2014 DCED Grant Summary & Results
      • 2014 Innovation Contest
      • 2013 Innovation Contest
      • 2012 Innovation Contest Results
      • 2011 Innovation Workshop Presentations
      • SGICC Annual Environmental Health & Safety Award
  • Research & Reports
  • Our Newsletter

Increasing Use Trends

Overall need for natural gas (44.5% increase)

                                   2007                                                     2035     
Consumption              Quad BTU                % Share                 Quad BTU            % Share           % Change
Liquid Fuels                  174.7                        35.3%                    223.6                      30.3%                 28.0%
Coal                             132.                          4.26%                    206.3                      27.9%                 55.8%
Natural Gas                  112.1                        22.6%                   162.0                      21.9%                  44.5%
Renewables                  48.8                           9.9%                     99.8                       13.5%                 104.5%
Nuclear Power               27.1                           5.5%                     47.1                        6.4%                  73.8%
Total                            495.2                       100.0%                   738.7                     100.0%                  49.2%
Source: EIA, International Energy Outlook 2010.

The following charts show how the growing use of natural gas will be utilized in various industries or applications. 
(Source: May 2010 U.S. Energy Information Administration Report)

Tax credits encourage installation of renewable technologies

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More than one-half of the States have either binding RPS or nonbinding voluntary targets for renewable energy generation. The recent enactment of Federal ITCs for distributed renewable technologies through 2016 provides the greater assurance necessary for market development that will help States achieve their renewable energy goals. 

Conventional natural-gas-fired turbines and engines account for the next-largest capacity increase, followed by microturbines and fuel cells.

Heat and power energy consumption increases in manufacturing industries

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In 2008, about two-thirds of delivered energy consumption in the industrial sector was used for heat and power in manufacturing; that share increases to three-quarters in 2035 (Figure 50).  

The rise in manufacturing heat and power consumption in the AEO2010 Reference case can be attributed primarily to a relatively large 36-percent increase in total energy use for the refining industry (although the value of shipments produced by the refining industry grows by only 11 percent over the same period). The strong growth in fuel use for refining results from higher industrial demand for lighter feedstocks, changes in the production mix as demand for diesel fuels increases, a shift by refineries from lighter to heavier crude oils, and growth in biofuels production. 

Use of fuels as feedstocks declines in the chemical industry

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Feedstock consumption trends in the AEO2010 Reference case reflect a switch from petrochemical feedstocks (naphtha and gas oils) to LPG feedstocks (ethane, butane, and propane) and a decline in basic chemical production. The shift occurs because of a growing divergence between more rapidly rising crude oil prices, which are the basis for petrochemical feedstock prices, and the slow pace of increase in natural gas prices—the primary basis for LPG prices. 


Over time, more fuels are brought into the mix of industrial energy use

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Liquid fuels and natural gas currently account for about two-thirds of industrial delivered energy use, and electricity, coal, and renewables make up the remainder (Figure 52). With fuel-switching opportunities often limited to boilers, kilns, and some feedstocks, changes in fuel shares tend to reflect long- term transitions among the mix of industries and capital investment. Although their use is declining, liquid fuels and natural gas are the leading industrial fuel sources throughout the projections. Almost one-half of industrial liquid fuel consumption is for use as a feedstock for the production of petrochemicals. Another large portion (28 percent) is generated as byproduct fuel and consumed at refineries. The decline in industrial use of liquid fuels and natural gas reflects a drop in chemical production, which accounted for a large share of industrial use of the two fuels (excluding natural gas lease and plant fuel) in 2008. 

Increased coal use for CTL production more than offsets a decline in traditional industrial applications of coal, such as steam generation and coke production, largely because of environmental concerns about emissions from coal-fired boilers, along with improvements in manufacturing efficiency that reduce the need for process steam. Metallurgical coal use also declines, reflecting a decline in steel industry output and the greater penetration of electric arc furnaces.

Energy consumption growth varies widely across industry sectors

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Energy consumption in the refining industry increases—despite a relatively flat trend in overall petroleum demand—given the industry’s needs to process heavier crude oils, comply with low-sulfur fuel standards, and produce biofuels as mandated in EISA2007. Energy use also increases in the food and paper and pulp industries, where rising shipments reverse recent declines.

About ben franklin technology partners

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Ben Franklin Technology Partners/CNP, an initiative of the Pennsylvania Department of Community and Economic Development and funded by the Ben Franklin Technology Development Authority, provides investment capital, operational assistance, and entrepreneurial support to emerging tech-based companies and small, existing manufacturers for the purpose of creating and retaining jobs in Pennsylvania.

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William Hall, Executive Director
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(814) 863-4881
Email Bill