Category: Natural Gas

Introduction

The following essay is concerned with the effects of natural gas drilling and health effects on the community. The essay also examines the solutions of the natural gas drilling and health effects on the community.However, it is important to first determine the meaning of natural gas before considering its effects on the community. Natural gas refers to a gas that consists methane and its one of the main energy sources in the modern world.

The natural gas simply refereed to as the gas contains Hydrogen Sulfide (H2S) which is harmful as far as the peoples health is concerned. The gas is present in abundance in most parts of the United States for instance Texas, New York among other states. The gas is extracted by a method which is referring to as hydraulic fracturing and it is extracted from the underground rock through drilling the solution vigorously into the ground at extremely high pressures.

The solution usually contains some poisonous substances which contaminate the groundwater and this has thus been the matter under discussion in most parts of the United States in the past few years. Many citizens in the United States have complained to the state as well as the federal agencies about the effects as a result of natural gas drilling (West Coast Offshore Exploration Environmental Assessment Panel, 1986).

Effects of natural gas drilling and health effects on the community

The natural gas drilling usually has effects on both the environment as well as the community as it affects the air, water and the soil as well as the people who live near the drilling locations. Thus the natural gas has the following effects as far as the communities are concerned;

The drilling of natural gas often leads to an increase in the traffic jams. The roads that leads to the drilling areas are usually not meant to be used by huge trucks and so their continuous use makes the roads to wear out.

Much time is wasted as a result of traffic jams as the lanes are not wide enough for tracks to turn change directions easily. The drivers on the other hand usually violate the traffic laws by not maintaining a single lane and hence causing accidents. This poses danger to the residents as there are more than three accidents that are reported to have occurred in a day in the drilling locations.

In Silver Hill for instance, it is very hard for a day to end without an accident involving the drilling trucks being reported. The roads are usually left in a poor state as no repairs are done and this inconveniences the residents who live in natural gas drilling areas. For instance, the roads are barricaded during winter season as a result of multiplication of vehicles daily. This forces the local residents to look for other roads and this is quite inconveniencing as much time is wasted for wrong reasons (Epstein & Manzoni, 2006).

The other effect as a result of natural gas drilling is water pollution. Huge volumes of used coal often referred to as cinder are laid down particularly during winter season so that the trucks can have some grips. During summer, the snow liquefies causing the solution to mix with the underground water. This is dangerous because when the dust breathed, it causes such effects as damage of the nervous system as well as the organs, eye iritatation, unconsciousness, death among others.

The hydraulic fracturing process also poses danger to the residents in that dust particles, water as well as chemical substances are put into the wells so as to smash the underlying rocks. When the underlying rocks are fractured, the water that was blasted returns to the wells causing the water in the wells to be salty. The salty water contains harmful chemicals which when drunk can cause serious effects.

Natural gas drilling is also characterized with the problem of flaring which arises when the drilling firms burns the excess flammable vapors. This is dangerous since the natural gas contains hydrogen Sulfide which is toxic. The gas also produces detectable odor and when inhaled, it can cause death or such adverse effects as paralysis of olfactory nerve, neurophysiological abnormalities among others (Mokhatab, et.al.2006).

The negative effects of natural gas drilling contributes to falling prices of real property i.e. real estate is a spatial commodity implying that its value is directly linked to what is going on around it.Thus, the investors finds it hard to sell their properties as buyers dont like to buy houses that are located near drilling areas due to the activities that happens there on daily basis.

Usually, the peoples willingness to buy a land or a given property is influenced by such factors as location e.t.c.Therefore; the loss of value with regards to real property in natural gas drilling locations is as a result of lack of inaccessibility. A real estate that is easily accessible, found in a good natural aesthetic, social and physical environment of good size and quality attracts more buyers.

Natural gas drilling is characterized by loud noises as well as air pollution and this often causes poor health. The residents who live in natural gas drilling areas often companions about the noise that is associated with drilling.

The noise usually varies in accordance with the space between the compressor and the residential area and therefore, those people who are close to the drilling location are greatly affected. The strength of the wind also makes the noise level to change and the residents can hardly sleep before they hear the loud and disturbing noise of the drilling machines.

The tracks are also a common source of noise. There are huge traffics of these tracks and they produce loud noise especially when hooting making the residents to have a feeling as though they live in an area that was meant to be an industrial zone. The residents in this area have a right to be free from unwanted noise and so the drilling companies violate their individual rights.

Natural gas drilling also has adverse effects as it causes injuries to the persons who are employed in this sector. Some of the accidents that may arise as a result of natural gas drilling includes the following; the production tanks usually explodes in the oil drilling areas and has caused death and other serious effects such as incapacitation, also the wells have been known to blowout, the heavy equipment poses a danger because it can clash someone, there are injuries associated with the unsecured ladders among others.

The effects of natural gas drilling ranges from death, severe burns, blindness, deafness, limb breakages among others. The family members of these workers are greatly affected and in case of death, the children are left without anyone to care for them.

Natural gas drilling has also been characterized with flash floods. These flash floods have devastating effects such as demolishing houses, destroying bridges, uprooting the trees, road damages, traffic congestion, and farmland damages among others. Thus the flash floods affect the daily activities of residents who live near the natural gas drilling locations. Flash floods also lead to loss of peoples lives and so the oil drilling companies really poses a danger upon the lives of the communities.

Natural gas drilling may also cause volcano eruptions and this is dangerous as far as people are concerned. Volcano eruptions have been known to have catastrophic and devastating effects in areas where they occur. People get killed and a high number are forced to leave their land and migrate elsewhere.

The volcano eruptions also has an effects with regards to the global climate earthquakes may also result following a volcano eruption and this is really threatening as far as the communities that live near to where natural gas is drilled (James & Lahti,2004).

There are numerous oil spills as well as gas leakages in the drilling areas and this has an effect of killing the aquatic life such as fish e.t.c.once the oil drains into seas and lakes. Once the chemical solutions get into waterways as a result of the fracturing process spreads at a faster rate .This is due to the fact that the currents facilitate the solutions to spread faster.

This in turn has an effect on the communities that relies on fishing as their means of livelihood. Gas leakages also causes respiratory diseases, imparing the proper functioning of the lungs as well as asthma when breathed.Also, explosions may occur as a result of natural gas exposure and this is dangerous as far as the health of someone is concerned.

Natural gas drilling has been characterized by an increase in population due to the employment opportunities that the occupation generates. The rise in population has adverse effects which include the following; high population growth has the effect of increasing the prices for rented houses in places where the natural gas is drilled.

This is due to the fact that there is high demand and so the landlords are tempted to increase the prices in an effort to maximize their profits. There are also increased crimes as a result of increased population in the oil and natural gas drilling locations. Cases of rape, murder, and robbery among others are usually reported on daily basis.Also, the social amenities such as hospitals, schools, recreational grounds among others are usually given pressure.

The natural gas drilling has an effect of damaging the wildlife as a result of water pollution and this in turn causes a decline of the number of tourists. This decline implies that the government losses revenues as well as foreign exchange earnings. It also leads to massive unemployment for the local residents who are employed in the tourism sector (James & Lahti, 2004).

Natural gas energy is much cleaner as compared to oil but despite this, there are greenhouse gases that are emitted in the air during the drilling process and this is harmful to the local residents. The greenhouse gas is dangerous as it is known to trap heat as well as carbon dioxide and this has an effect of causing the global warmings.This global warming have caused a reduction of fresh waters and has also seen an extinction of some of the endangered species in the world.

These animal species are also forced to change their habitats implying a reduction of the number of tourists in the gas drilling areas. The rains have also been affected implying that the farmers are not able to produce more due to persistent droughts. Many families that rely entirely on agriculture in gas drilling areas have been affected as a result. The gas leakages also causes harm with regards to plants and this thus affects the farmers who live in gas drilling areas.

The natural gas drilling can also bring about the Normally Occurring Radioactive Material commonly known as NORMS into the surface and this is harmful as far as the public health is concerned. Normally Occurring Radioactive if not handed in a proper manner can even cause deaths.

Other effect as a result of Normally Occurring Radioactive Material exposure includes cancer, birth defects among others. Exposure to Normally Occurring Radioactive is dangerous as far as the communities that lives in the drilling areas are concerned due to the long term effects that it has when either ingested or inhaled (National Research Council, 2003).

Natural gas drilling also puts strain on the available healthcare services as a result of injuries that result during the drilling process. The town emergency team is usually overworked due to the job related injuries that occurs to the employees who works in the drilling sites.

The noise that is produced during the drilling process often affects the school children in that it makes them to lose concentration and hence making them to attain lower grades as compared to those students who attends schools that are situated in a quiet enviroment.Also, the patients in hospitals are greatly affected by the loud noises that are produced by the trucks as well as the drilling machines (Geological Survey, 2010).

Solution to natural gas drilling and health effects on the community

The community that lives in areas where natural gas is drilled can take the following steps in order to cope with the harmful effects of natural gas drilling; they should stop drinking the tap water due to the fact that the drilling process contaminates the ground water. As a result there is numerous chemicals that are harmful are usually spread during the fracturing process. Though bottled water is much costly, it is much safer to use it as far as the health is concerned. The residents should also find close substitutes of water such as juice.

Also, they should abandon those areas that are associated with natural gas drilling. This is the most ideal way of dealing with the negative effects of natural gas drilling.They should put priority to their health and leave these areas even if it means parting away with their familiy heritage .

The government should act promptly so as to safeguard the well being of its citizens.Essentially,Federal laws have been know to exempt the oil and gas industries from such Acts as clean air, water as well as drinking water and therefore the Federal laws should be revised so as to put regulations to the gas industry.

This will in turn make the gas industry to be conscious of their actions with regards to the health needs of the general public. Those gas companies that are found to have violated the rights of communities should be heavily fined and if possible their operating licenses cancelled.

The local government should also make it compulsory for the truck drivers to pay taxes that will be used in repairing the roads.Usually, the trucks damages the roads making it hard for the local residents to drive on and so, the government should set up tolls for each road user.

This will help to minimize the number of accidents that are associated with poor roads and also enhance efficiency and effectiveness on the roads. The trucks number in a day should also be controlled as well as their weights so as to ensure that they dont damage the roads (National Research Council, 2003).

The government should also ensure that safety measures are put in place by the gas drilling issuing them with licenses. The government should thus refrain from issuing the oil companies with licenses until it is certain that the wellbeing of the communities is not at risk.

However, before a drilling process commences, the government should do the following; the government should come up with water as well as land guidelines that will provide the oil companies with instructions on how they should carry out their activities .This guidelines will ensure that the oil firms acts in a responsible manner as far as the public health on communities is concerned (West Coast Offshore Exploration Environmental Assessment Panel, 1986).

The government should ensure that there are proper ways of handling the hazardous waste by requiring bonding for the reservoirs. Those gas companies which do not comply with this requirement should not be issued with operating licenses. Steel linings should be recommended instead of plastic ones for reservoirs that contain the drilling solutions due to the fact that plastic linings are usually not strong and can break leading to spillages and in turn contaminate the groundwater.

The government should also provide education on the effects of natural gas drilling to the communities that live in the oil drilling areas. This will enable them to fully understand the impacts and thus devise strategies on how to handle them.

There should be laws that restrict the gas companies from operating near the schools or hospitals and measures should be taken on those companies that are found to be violating this law.

With regards to the declining property values, the local government should come up with plans that are aimed at increasing the demand for instance, improving the road networks in these areas, access credit at good terms to investors who wishes to buy houses these areas, lowering the cost of constriction materials among others (West Coast Offshore Exploration Environmental Assessment Panel, 1986).

Conclusion

Natural gas drilling poses danger with regards to the communities that lives near the sites. The effects as a result of natural gas can be felt for many years. Natural gas contaminates water thus affecting people as well as the aquatic life. It also affects the wildlife, farming lands, roads, plants among many things. Natural gas also has an effect as far as global warming is concerned.

Despite the above disadvantages, natural gas drilling also has some advantages which include the following; natural gas is much cleaner as compared to other modes of energy such as fossil fuels, it provides employment to the larger communities that lives where the sites are located, it is applied in many homes for cooking among others.

However, there is need for the government to put up regulations as far as drilling is concerned so as to protect its citizens from the negative effects of natural gas drilling. The communities too should take responsibility of protecting themselves from the adverse effects of natural gas by taking such measures as choosing not to live near the gas drilling firms e.t.c.

Reference List

Epstein, M & Manzoni, J. (2006). Performance measurement and management Control: improving organizations and society. London: Emerald Group Publishing.

Geological Survey. (2010). Bulletin  United States Geological Survey. US: The Survey publications.

James, S & Lahti, T. (2004).The natural step for communities: how cities and Towns can change to sustainable practices. Philadelphia: New Society Publishers

Mokhatab, N. (2006). Handbook of natural gas transmission and processing Chemical, Petrochemical & Process.

Amsterdam: Gulf Professional Publishing National Research Council. (2003). Cumulative environmental effects of oil and Gas activities on Alaskas North Slope. Washington, Conational Academies Press.

The University of Michigan. (1978). Oil and gas activities, Issues 13-15.Toronto: Information-Canada.

West Coast Offshore Exploration Environmental Assessment Panel. (1986). Offshore hydrocarbon exploration. Victoria: Province of British Columbia.

Being the most important resources that drive the economy of the states across Eurasian region, oil and natural gases have significantly contributed to the growth, and civilization of various countries in Asia and Europe. Oil and natural gases are not only the sources of energy, but also the driving force of the economy as they are among the highest contributors of GDPs in these countries. The fact that most nations in the Eurasian region are independent and sovereign states makes it difficult to mobilize the oils and natural gases, which are the major resources of these states.

Given that they are the major sources of development, they have become the objects of international politics, attracting some of the top economies in the world, such as Russia and the United States. The Eurasian region has a population of around 5 billion people, which is over 70% of the worlds total population. As such, the energy sector has generated millions of job opportunities so as to sustain the population. In other words, the oil and natural gas industry is an investment that holds the economy of the various states in Eurasia, and, therefore, the energy sector holds the power of the survival of these nations.

As seen in the past, oil has been a leading cause of conflicts among the Eurasian states and the outside countries that own oil mines in these regions. September 11 is an example of a tragic event that was caused by oil disputes. The conflict between Iraq and the United States rose as a result of oil control fueled by the United States declaration to advocate force in securing their oil. Al-Qaedas plan to bomb America and a couple of Americas embassies across the world was a strategy to curb America from deploying more forces in their oil reserves. The issue of transportation is also critical. The idea of transporting Central Asian oil by passing their pipeline in Afghanistan in order to make the distribution easier and cheaper impacted the 9/11 event.

Basically, oil production and its distribution have been the cause of war over the years as most nations disagree on various issues related to these natural resources (Oliker, 2002). The conflicts associated with oil and natural gases have been stereotyped; some people say that oil is cursed, being the cause of conflicts among the nations involved in production and transportation.

Soviet disintegration had a major impact on the oil energy sector. Apart from losing over 90% of the 10 million barrels that were produced every day, the Central Asian States also suffered the lack of modern technology and shortage of production equipments. This worked in favor of Russia and Azerbaijan as they secured the dominant positions in oil and gas reserves. Nevertheless, despite the disintegration of the Soviet Union, the five Central Asian States have maintained their inter-state political relations because of their dependence on each others resources as some parts hold hydrocarbon resources, while others have rivers, and, therefore meet the domestic needs of other states.

This reliance has strengthened their inter-states political relations as they acknowledge the roles played by the states involved. However, there have been occasional disputes among these nations caused by discontinued supply of oil and water. However, the intervention of presidents from these states has ensured that there is an understanding from all sides. As a way to deal with the conflicts in the Eurasian region, most of Asian and European countries are usually invited in an annual meeting that was formed in 1996, known as the Asia-Europe Meeting (ASEM).

Most wars usually occur as a result of disputes in regards to control of oil mines, and the concern of availing the oil at very high prices. Over the past decade, the issue of the legal status of the Caspian Sea has been seen to raise tension among Azerbaijan, Kazakhstan, Iran, Turkmenistan and Russia (Hiro, 2009). This subject has remained a complex matter as the countries involved have not been able to come to an agreement. Nonetheless, they have signed agreements so as to contain the occasional conflicts caused by the division of the Caspian Sea. The issue of security and boundaries is also a sensitive subject in the political scene as the states involved have always been fighting for the ownership of oil and natural gases fields. The disputes among the inter-states of the Eurasian region are usually considered as ethnic conflicts, however, the intervention of the outside nation increases tensions, leading to massive loss of lives and property. The scramble for the power of influence over oil/gas fields has resulted in armed intervention, transforming inter-states unrests to wars (Laruelle, 2008).

The distribution of oil and natural gas all over the world has seen nations forming political and social ties. As a result, this has opened new ways for globalization, industrialization, and economic growth of countries not only in the Eurasian region but all over the world. The oil/gas industry has been known to have a major influence on the public sector. Politics requires a lot of money so with the support of the individuals in this billion-dollar industry, politicians are guaranteed the resources they need. Nonetheless, they are expected to act in favor of these individuals once they are elected.

Even though the constant war in Afghanistan has discouraged other forms of investments, the country still gains a lot of foreign income from its natural wealth. However, the deployment of foreign armed forces from countries involved in the production and distribution has started the war, opening up opportunities for other forms of investments that contribute to the growth of the nation. Additionally, the intervention of the international community has helped to reduce inter-states conflicts and tensions among countries, seeking to gain the power of influence over the production and distribution of this mineral resource.

The economic gains due to oil and natural gases have significantly enhanced the development of infrastructure in Afghanistan. Apart from the foreign income obtained from selling these resources, these states have attracted investments which have created jobs that enhance growth and development. The involvement of political leaders in the energy-sector has been the cause of conflicts as tensions are developed by efforts made by the states involved to control oil/gas production and distribution. Over the years, it is evident that oil and natural gases have brought energy security, economic prosperity, and stability in this region (Rashid, 2008). However, this has also been followed by constant conflicts that are subject to the issue of power in production and transportation. In addition to this, the demand for these resources in the energy market has consistently increased as a result of industrialization, and the various economic tasks that contribute to the modernization of the world.

References

Hiro, D. (2009). Inside Central Asia. New York: Overlook Duckworth.

Laruelle, M. (2008). Russian Eurasianism: An ideology of empire. Washington, D.C: Woodrow Wilson Center Press.

Oliker, O. (2002). Faultlines of conflict in Central Asia and the south Caucasus: Implications for the U.S. Army. Santa Monica, CA: RAND.

Rashid, A. (2008). Descent into chaos: The United States and the failure of nation building in Pakistan, Afghanistan, and Central Asia. New York: Viking.

Indices

Proposal

Context

The Nigerian natural gas industry is young. There is appreciation for the need to develop a consistent strategy in the sector. This project seeks to identify current efforts that the government is using to develop the natural gas sector of the petroleum industry. It focuses on the aspects of the current strategy in use by Nigeria and seeks to propose ways in which the country can get more out of its current efforts. The context of the project includes looking at international trends in the trade of natural gas. It also includes an examination of how those trends affect domestic energy policy in Nigeria.

Novelty

The novelty of the project lies in the fact that it takes up on previous studies that have examined the issues surrounding the Nigerian natural gas economy. It seeks to identify the key influences in that economy. It identifies how their interplay affects the Nigerian economy. In the end, it will provide a unified view of all the influences and propose the best strategy that cuts across the influences to yield a master plan for the Nigerian natural gas economy

Aims

The aims of the project will be as follows:

1. To identify the factors that influences the natural gas industry in Nigeria such as human resource development, research and development, economic and regulatory, and the outlay of requisite infrastructure.
2. To examine energy utilization factors in Nigeria relevant to the extraction and marketing of natural gas.
3. To develop a coordinated strategy that offers direction to the Nigerian policy making organs on the best way to take advantage of the countries natural gas deposits

Main work packages

The main work packages for the project are as follows:

Literature Review

This will involve looking at key literature relating to various aspects of the Nigerian economy, its energy needs and portfolio, and its petroleum industry

Data Collection

After the production of a questionnaire, there will be a data collection exercise relating to the areas of the project requiring testing and development.

Data Analysis

This will involve the use of SPSS software to analyze data to find patterns, and trends to determine the efficacy of the master plan.

Final Project Report writing

This report will cover the findings and recommend elements of the Nigerian gas utilization master plan that require adjustment

Expected Outcomes

The project anticipates the following outcomes

1. Literature review that contains the key elements of the Nigerian natural gas utilization master plan
2. A report that critically evaluates Nigerias energy supply options and puts them in context

Technical Risks

The project will rely on the quality of data collected. Any biases in the data will influence the outcome of the report

Resources Required

The resources required include:

1. Airtime
2. Internet access
3. Travel Allowance
4. Computer
5. SPSS Software

Project Beneficiaries

The key project beneficiaries are as follows:

Nigeria National Petroleum Corporation (NNPC)

As the main implementing agency of the Natural Gas Utilization Master plan, the NNPC stands to benefit most from this project. It will provide them with a view of the status of their implementation and the areas to focus on to attain sustainability.

Regulators

Energy sector regulators will also benefit because it will provide them with the metrics that influence the Nigerian gas economy. It will empower them to produce better strategies for regulation of the energy industry.

Regional Planners and Economists

As a federal republic, Nigeria depends on regional decision makers to push for national agenda within the regions. The report will empower regional planners and economists to develop and implement proactive policies

Gantt chart

Outline 2

Literature Review

1. Introduction
2. Nigerias Energy Supply Challenge
3. Nigerian Petroleum Industry
4. Natural Gas in Nigeria
5. Natural Gas Utilization Master Plan
6. Areas of Further Research
7. Conclusion

Literature Review

Introduction

Nigeria is a very significant country regionally and globally on many fronts. It is one of the largest economies in Africa, ranked only behind South Africa. It boasts of a very well educated population. Nigerias economy benefits hugely from oil exports, which contribute the lions share of its income from exports. For a long time, natural gas that surfaced during crude oil mining did not end up in economic use. Oil companies chose to flare it to reduce the risk of accidents. On the political front, Nigeria has had many rulers, with the better part of its post-colonial history under military rule. Political instability and poor macroeconomic planning resulted in a very high poverty incidence where over fifty percent of the people still live under the poverty line (Obaje, 2009). However, the situation has been improving. Nigeria has had three civilian rulers in the last decade, which has provided it with the political and macro-economic stability it has needed to take advantage of its natural resources. For the last ten years, the civilian rulers have shown a lot of interest in the development of Nigerias natural gas reserves.

Nigerias Energy Supply Challenge

Nigeria is the seventh most populous country in the world, with a population of over 155 million. Such a large population requires huge amounts of energy to meet its needs. Nigeria has had perennial energy problems despite being a key oil exporter. Nigerias electricity production, at 2300MW meets only a quarter of the known demand (Oxford Business Group, 2010). The country has two times the production capacity but lack of natural gas processing capacity hinders its use for power production (Oxford Business Group, 2010). Economists project that the current known electricity demand will soar if there is guarantee of reliable supply. This means that required capacity will be much larger than the projections based on current demand only. Many companies in country use alternative ways to generate power. Diesel powered generators provide power for many of them. These generators are expensive to maintain, and hence they contribute to higher operational costs for businesses in the country (Oxford Business Group, 2010). Because of the underdeveloped power sector, Nigeria has the lowest per capita consumption of power in the world, at 155kw/h (Oxford Business Group, 2010). This statistic is not one to be proud about. This is because there is a direct correlation between development and power consumption. This correlation shows up in the large poverty incidence in Nigeria. While there are other energy sources available for exploitation in Nigeria, their application remains limited. Solar and wind are readily available and may form part of a future energy mix for the country (Mwalimu, 2005). At the moment though, their use does not contribute significantly to the Nigerian energy mix. With vast amounts of crude and some of the largest known reserves of natural gas, Nigeria may not be going green any time soon. There are two major problems with the Nigerian energy system. Its electricity distribution infrastructure is in bad shape leading to consistent power failure and poor power quality (AfDB & OECD, 2010). Secondly, the distribution channels for natural gas are not well developed. These two conditions make the Nigerian energy situation dire.

Nigerian Petroleum Industry

When Nigeria got its independence from Britain in 1960, it was essentially an agrarian economy. Its oil sector was not well developed. However, with the soaring demand for oil in the succeeding years Nigerias oil sector blossomed and became the player that it is today. In a twist of fate, Nigerian leadership ignored many of the needs for infrastructure that it had over time at the cost of developing its oil sector. This has resulted in the current situation where Nigeria has a very huge dependence on oil (Ariweriokuma, 2008). Its economy relies on oil for over ninety percent of its foreign exchange earnings (Obaje, 2009). This situation exposes Nigeria to setbacks associated with the fluctuations that attend to the international oil market, which exposes it to catastrophic consequences.

The lack of a balanced growth strategy for Nigeria has resulted in a skewed income portfolio for Nigeria. With a contribution of over eighty percent to the national budget, the exploitation of oil and gas is the single most significant activity in Nigeria (Mwalimu, 2005). The development of the gas sector is a way to begin easing Nigeria from its heavy dependence on crude for foreign exchange and for local job creation opportunities. Natural gas promises to develop new supply chains and marketing infrastructure that will diversify the products sold from Nigeria. The natural gas economy does not operate in the same way as the crude oil economy. By operation in the two economies, Nigeria will have a better economic portfolio whenever there are fluctuations in either of the economies.

Natural gas development also promises better power generation opportunities for Nigeria. Currently, Nigeria uses some of the natural gas that it produces to run gas plants. However, it still has a large capacity to develop its natural gas generation by the installation of more natural gas fired plants.

Natural Gas in Nigeria

While Nigeria developed its crude deposits over the years, it did not go with the same zeal to develop its natural gas deposits. During extraction of crude, miners observed that the crude had a lot of gas in it. Since it did not interest the initial prospectors much, flaring became the mode of disposal of the unwanted gas. In recent times, the economic viability of natural gas has made its processing attractive. The natural gas deposit in Nigeria is three times larger than its petroleum deposits (Obaje, 2009). Nigeria is poised to become a major player in the natural gas market because of its compressed natural gas reserves are in excess of 180 trillion cubic feet. However, Nigeria has a more serious domestic energy supply problem. Development of the natural gas potential must put this into consideration.

The Natural Gas Utilization Master Plan

An economically viable development of the natural gas deposits in Nigeria requires a coordinated strategy. The Nigerian government has developed a natural gas utilization master plan. Onyeukwu (2009) identified three stages in the development of the Nigerian gas sector. He refers to the first stage as the Pre 1999 era. During this era, development in the natural gas sector did not have any coherence. Much of the gas produced at the time went to flares causing environmental damage and financial loss (Onyeukwu, 2009). There was constrained demand for natural gas during this era. After this era, there was the 1999-2005 NLNG (Nigerian Liquefied Natural Gas) era. The key developments here included mainstreaming of natural gas with a better-coordinated sector development. There was stricter enforcement of legislation to banning the flaring of natural gas. This era gave way to the Post 2005 Demand Boom/Supply Constrained Era, which coincided with increasing local and international demand for natural gas (Onyeukwu, 2009). There was a trend internationally that favored the development of natural gas deposits in low production countries such as Nigeria. The driver for this demand was the dwindling of reserves in traditional international sources.

The Nigerian governments master plan developed under civilian rule sought to deal with both upstream and downstream issues. The three components of the Nigerian Gas Master Plan are National Domestic Gas Supply, Pricing Policy and Regulations, and the Gas Infrastructure Blueprint (Onyeukwu, 2009). The first component places constraints on gas suppliers to ensure they provide the conditions that make natural gas available for the domestic market. The pricing policy places a floor on the gas prices in the three divisions of the demand sector and leaves space for negotiations for actual prices. Finally, the gas infrastructure Blueprint addresses the need to develop infrastructure to handle local, regional, and international markets. Without adequate infrastructure, the exploitation of natural gas will remain elusive.

In line with the chellenges that Nigeria faces, the Nigerian National Petroleum Corporation (NNPC) identifies three priority issues for the Nigerian gas sector. The first one is building the infrastructure and developing the human resource pool required to manage the sector. The second part is the development of a local market for natural gas. At the moment, the demand for natural gas is low because petroleum prices in Nigeria are rather low, hence there is no price incentive to invest in natural gas burning equipment (Umukoro, 2009). This is changing gradually by because of the rising petroleum prices. The third area is expanding participation in the sector to include as many stakeholders as possible. While natural gas contributes to global warming, its pollution rate is lesser than that of equivalent fossil fuels (Low, 2005). This means that natural gas provides the world with an alternative to other fossil fuels in the race to reduce emissions. Also, commercializing the gas reduces the environmental effects that flaring brings along (Umukoro, 2009). When natural gas is flared without economic use, the result is net loss including environmental pollution.

There are three key weaknesses in the Nigerian gas utilization master plan. These weaknesses include a lck of strategic focus in research and development, poor physical infrastructure and an uncoordinated regulatory environment. Nigeria will need to up its game in research and development in the oil and gas sector if it will retain its place as a profitable user of natural gas (Obaje, 2009). The need to generate more power for Nigeria requires the coordinated action to develop solutions for Nigerias problems. The master plan must address the human resource constraints that relate to the successful translation of a gas mining country into an energy sustainable one. The low investment in R&D places Nigeria at a disadvantage. The reason for this could be the huge investment by multinationals in the oil sector, making the need for investment in oil and gas R&D unnecessary for the Nigerian economy. However, this limits the benefits that Nigeria gets from its reserves since it remains reliant on foreign owned technology to harness and distribute the resources. Most successful oil extracting companies, private or publicly owned, have very impressive R&D centers to which the Nigerian one under the NPC does not compare (Obaje, 2009).

The second and third areas that require critical attention is that of physical infrastructure and legislative and regulatory framework to govern the distribution of natural gas (Ford Business Group, 2010). The infrastructure required for proper distribution of natural gas does not exist to an appreciable extent in Nigeria. On one hand, Nigeria needs to develop a pipeline to carry natural gas to its energy utilization centers such as the city of Jos. The gas can run gas fired turbines to generate electricity and for combustion by gas engines. On the other hand, Nigeria needs to develop its power generation capacity to meet its needs by selling some of the natural gas, because the market in Nigeria is not large enough to take up all the supply available. By selling natural gas, Nigeria can use the proceeds to develop its local power generation capacity.

The challenges that the Nigerian government needs to address before it makes the use of natural gas in Nigeria profitable include policy changes such as removal of subsidies and development of carrying capacity. The oil and gas sectors of Nigeria continue to benefit from government subsidies. The Oxford Business Group (2010) argues that Nigeria needs to unshackle the two sectors from the subsidies if they will compete profitably in the international market. A key challenge in natural gas trading is the rather expensive forms of transport that it requires (Low, 2005). This calls for identification of large demand centers located near supply centers. In fact, part of the reason why there was a lot of flaring of natural gas in Nigeria was the lack of a viable market. Many oil producing countries however realized the potential for tapping natural gas during crude mining and developed the requisite business systems. To meet the strategic goals of improving the uptake of natural gas in the country, Nigeria has introduced Compressed Natural Gas (CNG) for use by cars and other automobiles (Mwalimu, 2005).

The implementation of the master plan continues to face the administrative challenges that attend to the Nigerian federation. The three tier federal system in Nigeria is full of replication and duplication of authority, making doing business difficult (AfDB & OECD, 2010). The function overlap by competing agencies only serve to reduce the speed of implementation of reforms in the sector.

On the economic front, Nigeria relies on the US dollar to transact in the international market. This leads to losses in foreign exchange. Muller et al. (2007) contend that part of the way to deal with the Nigerian over reliance of the US dollar is to trade using its national currency, the Naira, at least regionally. They contend that using the dollar in international trade robs Nigeria of the capacity to bring home some of the jobs in the natural gas value chain thereby worsening its unemployment situation. In addition Nigeria should work harder to rope in trade in oil and gas in the informal sector to increase revenues from the sector (Muller et al., 2007). They continue to say that Nigeria has very many professionals in the global oil and gas industry, hence only qualified Nigerians should get employment with the Nigerian National Petroleum Corporation and not similarly qualified foreigners. (Muller et al., 2007).

The unique selling proposition of gas is that it competes very well with other fossil fuels in as far a as green house gas emissions are concerned. Also, natural gas has fewer handling requirements in its production and development stage because it leaves no sludge or ash to deal with after utilization (Ariweriokuma, 2008). In addition it is very flexible as a fuel, providing better design development options for engines. These factors contributed to the increasing importance of gas since the mid 80s. Security is a key concern for the gas business in Nigeria. Insecurity in the Niger delta led to dramatic losses in the closing years of the last decade (Maritz, 2010). The development of a long-term strategy needs to take into account the security situation in the country.

Areas of Further Research

There is need to research on the bottlenecks to the implementation of the plan In use because the development of another master plan will run into the same problems if they are not adressed. This area requires the determination of the impact of corruption, political expediency and incongruent planning to the implementation of the masterplan.

Conclusion

In conclusion, the Nigerias Natural Gas Utilization Master Plan needs cut across the energy sector and must take into account the different situations attending to the Nigerian economy. There is need to market the natural gas to other countries in order to develop the systems required for Nigeria to take full advantage of the natural gas deposits it has. In the meantime, Nigeria will do well to invest in gas fired plants to generate energy for domestic use. The Nigerian government must take a serious look at the infrastructural outlay it has in relation to the supply of electricity. The production capacity that coal fired plants will bring cannot serve their purpose with the current infrastructure. It is too weak to carry the nations needs. The third issue that requires attention is human resource development, including research and development. By developing these two areas, Nigeria will increase its profits by benefiting from both upstream and downstream activities in the natural gas sector.

Reference List

AfDB & OECD, 2010. African Economic Outlook. OECD Publishing.

Ariweriokuma, S., 2008. The Political Economy of Oil and Gas in Africa: The Case of Nigeria. Illustrated ed. New York: Routledge.

Low, P.S., 2005. Climate Change and Africa. Illustrated ed. New York: Cambridge University Press.

Maritz, J., 2010. Nigeria Like it is: A Practical Guide to Doing Business in Nigeria. Maritz Publishing.

Muller, J., Reder, M. & Network, S.-E.J., 2007. Africa and Europe: Co-operation in a Globalized World: Conference of Scribani-European Jesuit Network. Berlin: LIT Verlag Munster.

Mwalimu, C., 2005. The Nigerian Legal System. New York: Peter Lang Publishing.

Obaje, N.G., 2009. Geology and Mineral Resources in Nigeria. Ilustrated ed. New York: Springer.

Onyeukwu, H., 2009. Nigerian Gas Master Plan and Policy: Is it a Constrained Energy Policy? From the Selected Works of Humprey Onyeukwu. Lagos: Selected works Bepress.

Oxford Business Group, 2010. The Report: Nigeria 2010. Lagos: Oxford Business group.

Umukoro, B.E., 2009. Gas Flaring, Environmental Corporate Responsibility and the Right to a Healthy Environment:The Case of the Niger Delta. In F. Emiri & G. Deinduomo, eds. Law and Petroleum Industry in Nigeria: Current Challenges. Lagos: African Books Collective. pp.49-64.

The use of natural gas in the United States has experienced dramatic growth since late 20^th century. In most of the period, natural gas which saw massive production was a by-product of crude oil production. Long-lived reserves and easy target have since been provided by the large reservoirs of dry natural gas production.

On April 1992, the Federal Energy Regulatory Commission (FERC) issued an order requiring a comprehensive natural gas restructuring, which was meant to enhance a more competitive ground into the natural gas industry.

Subsequently, the order enhanced the unbundling of pipelines gas sales and transportation services, thus the natural gas producers and the shippers could engage in arms-length transactions. More importantly, the order made it possible for natural gas buyers to do this with an equitable and fair access to pipeline transportation from the sellers (Dahl, 112).

The main focus of the order was to create a capacity reallocation program, known as capacity release. This was to enable the shippers who had the capacity right of firms to release large amount of capacity through the pipeline for sale.

In addition, there were requirements on the pipe release, which required posting of information necessary to provide the interested parties with an opportunity to bid on the release capacity. This created a bidding competition, which saw the bidders with the largest value to become the acquiring shipper.

In 1993, the FERC commenced evaluating pipelines conformity filings, also putting in place the capacity release enactment. All pipelines were to be approved and their operations were to be as per the requirements of the Order. The FERC aimed at ensuring that there was a well functioning capacity release to the market and a more competitive ground for natural gas delivery by the natural gas industry.

While on the same time, enhancing the efficiency of cost distribution and mitigating rate increases to firm gas customers, which were achievable since the firm shippers of natural gas paid for the fixed costs of transportation (Lautzenhiser & MacDonald, 253).

Having analyzed the main focus concerning the industrial requirements according to the order, let us look at the industry at a glance. Natural gas which is almost composed of methane entirely is a useful fuel used for commercial purpose as well as residential purposes. Its production, transportation and consumption is measured in cubic feet, which is equivalent to an area measuring one foot in regard to all three dimensions.

The energy of one cubic feet can be estimated to hold energy equivalent to around one million British thermal units (Btu), however this energy does fluctuate due to different chemical composition of a gas. In the twenty-first century, the use of natural gas is increasingly been used to generate of electricity, with many production industries embracing use of natural gas in place of nuclear energy as it shows effectiveness in the speed of electric generation as well as it contributed to cleaner environment.

This enabled the natural gas production to take over other energies such as coal and other fossil fules, and its role was expected to be extended further by the Clean Air Act effect. The natural gas is also used more due to its efficiency in retaining and distributing the heat energy produced through electricity generation (Dooley, 453).

The origin of the natural gas industry is traceable back in 1859 in Titusville, Pennsylvania. During this time, the first pipeline transportation was established in United States when oil was struck 69 feet below the ground by Edward Drake, a former railroad conductor.

It was however used to light street lights as there was no easy way of transporting the gas into people homes. Later on, natural gas was established in domestic usage through water warming and cooking food by gas producers.

However, during this period, its usage remained constricted until the end of the Second World War when some metallurgy advancements, pipes making rolling and welding processes contributed to improvement of distribution channels. There was expansion in layout of pipelines and widened usage of natural gas in America industry (Hackworth, Koch & Rezaiyan, 193).

The first Natural gas Regulation Act was passed on 1938 which was the first government regulation of the industry. The Acts aim was to protect the consumers from the emerging monopolies in the natural gas industry through price regulation of the natural gas (Lautzenhiser & MacDonald, 153).

In the 1970s and 1980s there were acute outages of the gas which contributed to the eventual change from price regulation thus heightening the demand for the natural gas supply and decreasing the prices. Gradually, innovation and technology improvement started to be realized in natural gas industry as a result of competition.

In 1990, the Clean Air Act Amendment boosted the natural gas demand as it argued that natural gas was the cleanest energy source and by late 1990s, the natural gas industry was leading the supplier of energy with more than a half of the nations energy and indications showing that the reliance on natural gas was increasing.

The consumption of natural gas as energy had risen up to 70 percent of energy needs by 1999. According to Lautzenhiser & MacDonald (363), there were more than 1.3 million miles of natural gas transmission and distribution pipelines traversing the nation, delivering supplies to 60 million commercial and residential customers.

In early 2000, there have been proposals on pipeline projects which were estimated to boost the capacity of gas delivery by 23.2 billion cubic feet per day. As a result, a significant number of coal burning power and nuclear plants were shut down while other was being converted to natural gas facilities.

In the beginning of 2000s, the natural gas industry suffered from the sluggish market impacts, incoherent market deregulations and from the upheavals in the general energy industry, which were attributed greatly to the 2000 energy crisis in California together with the collapse of energy giant, Enron. This led to downsizing operations, large scale sell-offs, and a drastic decrease in shareholders equity in several firms.

According to Dahl (341), although natural gas makes up just one-third of the entire energy industry, because most energy companies have diversified interests that span the market, the beginning of the twenty-first century saw the industry weather a difficult storm of customers and investor distrust. This saw declining capability of production, despite the fact that the usage of natural gas was expected to increase.

As mentioned earlier, the state regulation and myriad of federal are the core determinant of the distribution and transportation of natural gas.

This has categorized the two practices by putting the interstate pipeline under FERC jurisdiction and local distribution companies under the domain of their states public utility commission. Although historically oligopolies have directed the distribution chain of the natural gas from the producers to the consumers, deregulation during 1980s and 1990s enhanced by the fragmentation and competitiveness in the industry.

Before the deregulation, the chain of the gas distribution involved transporters who relied on the gas producers for supply, and were required by the wholesale agreement to provide the gas to distributors. The distributors under retail chain then delivered the gas to the end users.

However, on the employment of the deregulation, the natural gas industry experienced an expansion and extension of the traditional roles. In addition, there were new entrants in the distribution chain; these were consultants, brokers, marketing affiliates and independent marketers.

The natural gas industry has trade associations, which represent the numerous segments, for instance the demands of local-distributing firms are represented by American Gas Association, The Natural Gas Supply Association represents the giant gas producers, and The Interstate Natural Gas Association of America which represents pipelines firms.

Other related organizational representations include; small independent gas producers who are represented by Independent Petroleum Association of America, gas producers who are represented by Domestic Petroleum Council, and local distributors who are represented by the Natural Gas Council. The deregulation has increased the accessibility and consistency of the supply of natural gas and has also enhanced increase the gas demand.

Focusing on the current industry conditions, the early years of 2000 have seen the industry experiencing serious setbacks. California for instance experienced a significant power shortage and outages in 2001. In 2002, there was an artificial shortage of the natural gas which was attributed to El Paso Corp intention of heightening the gas price in its greed intention of acquiring vast amounts of profits.

Following this scenario, the Enron Corp was faced by severe losses due to withdrawal of support by the Wall Street investors due corruption allegations, which lead to a drop by 90% in the shareholders wealth.

As a result, the natural gas industry was faced by tailspin of downsizing, lay-offs, and sell-offs. The industry therefore lost its credibility and went on a hard track of obtaining bankers and investors an attempt which remained wary of the volatile industry (Dahl, 290).

While the natural gas supply remained above average in 2002 with regard to previous five years, the natural gas storage supplies showed poor records in 2003 contributing to higher prices. However, as the U.S economy started recovering from the economic downturn as at the end of 2003, it was projected that that natural gas demand would rise by about 4% and would be consistent.

On the other hand, the production was not expected to increase regardless of the low level of storage. However the deregulation gradually revised the trend of both the production and distribution of the natural gas and the usage in commercial and domestic area. This was accompanied by increased demand of the natural gas.

However, the natural gas industry emphasizes more on market efficiency. Under the pipeline maintenance investigation, the U.S Department of Transport reported that more than 800,000 leaks in service line and gas main is experienced every year. This is significant representation of earning through gas loss beside a clear presentation of a potential disaster (Dahl, 284).

According to the Energy Information Administration, it is projected that the use of natural gas as an electricity generating fuel would grow by 30% in year 2010 in comparison to 1992 levels. The increasing reliance of the natural gas has called for regulations that will ensure that the markets dealing with this product are exercising efficient operations. The recent years have seen the natural gas industry transforming from strict regulations to increasing competition.

This is a change has been attributed to the whole distribution chain from the wellhead sources to the burner tip end user. However, the competition has affected the industry strategic choices which have become complicated due to the expansion of pipeline services, natural gas derivative markets which have been successfully developed, and the North American market integration (Dooley, 173).

According to Dooley (317), any explanation of capacity release transactions must begin with an overview of the regulation that created the mechanism, thus the legislation creating the mechanism needs to be overviewed. This will enable one to realize that natural gas pipelines, unlike others, were not designed as common carriers, however according to Order No. 636 and 636 the FERC has the mandate to change natural gas pipelines into common carriers.

The FERC attempted to change the pipelines transformation into common carrier in 1992 through revolutionizing the natural gas industry by authorization of pipelines unbundling their services to natural gas end users. In capacity release, the determination that the capacity will be utilized over a certain period of time enables determination of period of release, quantity to be released, whether or not the release is recallable among others.

The capacity release is transacted through pipelines ebb and though it is initiated by the seller, buyers also have the potential of triggering them (Dooley, 213).

There are important variables which are the key determinants of the prices for release capacity. According to Dahl (372), the price of release capacity of natural gas industry is influenced by several factors which include; the distance over which the capacity release is effective, amount of capacity release, the number of releasing shippers on a given pipeline, the discounted interruptible rate of transportation on pipelines where the release is undertaken and the time length under which the release operation is effective, the capacity utilization degree on the pipeline, the specified minimum rate in posting of the release capacity, consideration whether deals contain recall right or not and whether the deal was prearranged or not among others.

Natural gas industry has developed research and technology where development programs, research and designs were appropriated $246 million in 1999 at the Department of Energy. Adoption of intensive natural gas technology were also announced by Gas Research Institute which aimed at implementing natural gas cooling technology and natural gas micro turbines among other.

This saw Enron Gas Pipeline Company being awarded in 1999 for surveying fugitive emission compressor stations which was a promising undertaking in helping the industry to secure co-funding and consortium for testing natural gas such like methane.

The overall effort in improving the research and technology of the natural gas industry is aimed at enhancing expansion of natural gas market as well as improving natural gas conveyance. The evolution of natural gas fueled vehicle contributed to an increase of natural gas consumption by 26 percent despite the fact that it accounted for a minimal fraction of U.S natural gas consumption (Hackworth, Koch & Rezaiyan 413).

In addition, the industry have been able to introduce a residential natural gas dehumidifier which have since replaced air conditioning units which used electricity in private homes, industrial and commercial applications. Notably, United Technologies manufactured natural gas fuel cells which could produce heat and electricity by combining oxygen and hydrogen.

The low emission by these cells has made the technology look more suitable when used inside buildings. These natural gas fuel cells have been used in various industries such as food processing, hospitals and mass transit agency.

Works Cited

Dahl, Carol. International Energy Markets. Understanding Pricing, Policies and Profits. 2004.

Dooley, John. Unintended consequences: energy R&D in a deregulated energy market. 27^th August 1998.

Hackworth, John, Koch Robert, & Rezaiyan, John. Economic Evaluation and Market Analysis for Natural Gas Utilization. April 1995.

Lautzenhiser, Stephen & MacDonald Scott. Evaluation of Capacity Release Transactions in the Natural Gas Industry. June 1994

Introduction

The importance of oil and natural gas industry

It is impossible to imagine the modern world without energy. People got used to live in warm houses, the greatest plants work on the basis of the products oil and gas industry supplies them with. This high demand on energy in different forms makes it impossible for the modern economy function without it. Oil and gas industry is considered to be the most impacting in the whole world as well as in the USA.

The Purpose of the Research

The main purpose of the research is to consider how oil and gas industry affects the economy of the country. It is important to understand that the financial value of the industry is not the only an issue which is considered to be influential at the financial market, labor market is also affected at great extend.

The Effect of Oil and Natural Gas Industry on the Economy

The General Impact of the Industry on the Economy of the USA

The general impact of the oil and gas industry may be divided into three main measures, direct impact, indirect impact, and induced impact. Direct impact is understood as the jobs and added value which are considered within the industry. Indirect impact is followed within the industries which deal with the products offered by the oil and gas industry. Induced impact is considered as the use of the income resulted from the oil and gas industry. Almost each country in the world deals with this industry and it is possible to say that the impact of this industry is great (The Economic Impacts 9). It is crucial to consider the financial importance and the significance of the industry as the employee in detail.

The Impact of Oil and Natural Gas Industry on Business and Finances

Dwelling upon the impact of the oil and gas industry on the economy of the country, business sector cannot be omitted. The great impact of the industry on business may be explained as follows, the industry spends money which is further spent by local businesses and recipient employees; then businessmen purchase different goods and hire employees who get salaries and spend them on state economy. This is an indirect impact of the oil and gas industry on the USA economy (The Economic Impacts 14).

The demand on the products manufactured in the industry has been increasing from year to year. With the rise of the prices on the oil and gas, capital investments increased as well. This influenced the level of revenue in the industry and the rate of taxes the industry pays to the national treasury.

The production of the crude oil in 2005 was valued at $45.2 billion. The increase of the natural gas production is measured by the increase on 312% from 1997. The export of gas and oil brought the country value at $45.2 billion in 2006. The contribution to the gross domestic product in 2005 was about $5.1 billion (Williams 9).

The Effect Oil and Natural Gas Industry Provides on Labor Market

The impact of the considering industry on the labor market in the whole world and in the USA is crucial. More than 7.8 million employees were involved in the oil and gas industry in the USA, according to the information collected in 2007. If to pay attention to the total employment contribution to the national economy, including the related jobs, the industry managed to provide 9.2 million employees in 2007. This is 5.7% of the whole employment in the USA (Pennsylvania Economy League of Southwestern Pennsylvania 3).

Apart from the creation of the job places within the industry, the oil and gas industry creates jobs in related industries (Pennsylvania Economy League of Southwestern Pennsylvania 14).

Moreover, the same report states that due to the direct impact of the industry 10,538 employees have the jobs in the industry, 5,260 employees work in the related spheres and 10,761 employers are related to the industry by means of the induced impact (Pennsylvania Economy League of Southwestern Pennsylvania 16). These results are considered only for Pennsylvania and it is may be easy to predict he results for the whole country.

Conclusion

The Summary of the Information

Thus, it may be concluded that the impact of the oil and gas industry on the country and world economy is crucial, especially if to take into account the rapid growth of the industry. Moreover, there is a tendency that more and more companies and even the whole countries become dependent on oil. It becomes not only the product, but the method for payment. The country which exports more oil and gas industrys products is the most powerful one and can influence the price formation in the industry.

Oil and Natural Gas Industry Effect on Financial and Labor Markets

The labor and financial markets are influenced by the industry in both direct and indirect ways. Many companies have created business on the basis of the products and services produced within this industry. Many people work in the sphere, even if there is no oil and gas manufacture in the country. Many indirect job places are created on the basis of this industry.

Works Cited

The Economic Impacts of the Oil and Natural Gas Industry on the U.S. Economy: Employment, Labor Income and Value Added. Price Waterhouse Coopers 8 September, 2009. Print.

Pennsylvania Economy League of Southwestern Pennsylvania. The Economic Impact of the Oil and Gas Industry in Pennsylvania. Pennsylvania Economy League November, 2008. Print.

Williams, Cara. Fuelling the economy. Perspectives on labor and income 8(5): 2007, p. 9. Print.

Introduction

Qatar is considered to be one of the key exporters of liquefied natural gas (LNG) in the world. In 2016, it produced 181.2 billion cubic meters of gas, of which domestic consumption was only 41.7 billion cubic meters, while export reached 104.4 billion cubic meters (Natural Gas Production). According to the report of the Qatar National Bank (QNB), the country accounts for 30.1 percent of the global share of LNG, and most of the demand came from African and Asian countries (Japan). This paper will provide a literature review based on the recent information in the given field.

Natural Gas Resources (Fields)

Due to a variety of factors, Qatar retains its status as the worlds largest LNG producer. One of them is huge reserves, the volume of which reaches 900 trillion cubic meters, which is approximately 20 percent of the worlds resources. The second is the ease of gas production as well as the broad industrial base and experience accumulated by the Qatari gas companies over the past twenty years.

There are several large fields in Qatar that provide NLG, including Al Shaheen (300,000 barrels daily), Dukhan (225,000 barrels daily), and Idd alShargi (100,000 barrels daily) (Japan). The primary operators of the mentioned fields are Maersk, Qatar Petroleum, and Occidental, respectively. All of the mentioned largest fields present great potential to grow, and, therefore, operators invest in their development. The literature review also reveals some minor companies working in gas production, the capacity of which ranges between 7,000 and 45,000 barrels per day (Japan).

Production

Despite the embargo of Qatar set by the Quartet countries (Saudi Arabia, the United Arab Emirates, Egypt, and Bahrain), it is safe to suggest that the Qatari economy stood up in the face of such acts of its Arab neighbors (Gloystein). In these conditions, LNG became the core tool that gives Qatar an incentive to develop. Gloystein claims that the policy pursued by Qatar allowed neutralizing the negative consequences for the economy, especially in the gas sector, where the country has achieved great success in recent years. Many manufacturers have entered the market, between which there is competition for access to resources and distribution of quotas for gas supplies (Naji). At the same time, LNG is recognized as the cheapest and safest gas that provides Qatar with a competitive advantage.

Qatar is considered one of the smartest gas producers in the world, which maintains the balance in the market without forgetting its own interests. It is obvious that the increased productivity will strengthen Qatars position in the long term. In his latest statements, Dr. Mohammed Bin Saleh Al-Sada, the Minister of Energy and Industry, declared that the measures taken against Qatar proved that the country has a stable and diversified economy (Ministry of Energy & Industry).

According to the minister, LNG supplies to Japan, India, South Korea, and China account for approximately 75 percent of the countrys exports, and sanctions did not affect these figures. It should also be stressed that Qatar fulfills obligations under all agreements with partners and intends to preserve the current state of affairs in the gas sector, despite the unlawful and unfair actions of its neighbors (Naji). Thus, the production of NLG in Qatar is growing, and the processes involved in it seem to be apparent and effective.

Exports

It is noted that the increasing volumes of gas production in Qatar, along with the need of a number of countries for its supplies, indicate the confidence of the world in Qatar. Although the propaganda is carried out by the opposing countries, Qatars solution to raising the level of production of LNG was made in a timely manner and corresponded to the current situation. Recently, the Qatari RasGas Company made the first delivery of LNG to the floating terminal Toscana near Italy for storage and subsequent regasification (RasGas Delivers First LNG). It seems essential to pinpoint the fact that the mentioned event marked a new shift in the expansion of Qatar to European gas markets, where Italy may stand along with the United Kingdom and Spain as an importer of Qatari natural gas.

Following the results of 2017, Qatar Petroleum increased foreign LNG supplies to 77 million tons. Now, Qatar is to find buyers for new volumes of liquefied gas as the country plans to increase its export by 30 percent in the next five to seven years  by 100 million tons per year (WrapUp 1  Qatar Raises). It is worth mentioning that Indian Petronet LNG and Frances Total SA have already expressed interest in additional purchases of LNG (Mukherjee and Verma). A number of companies from China, Russia, the United States, and Europe also intend to take part in the creation of the necessary liquefaction capacities.

Future Trends in Qatars Gas Exploration

Due to the isolation, LNG supply routes from Qatar have to be changed, and in the future, India will have to sell more gas in the spot market, which is usually less profitable. Simultaneously, Egypt and the UAE, in particular, the Dubai emirate, which supported Saudi Arabia in the actions against Qatar, will have to look for new gas suppliers, and those cargoes that they refused could be sent to Western Europe. For instance, the UK, the largest gas storage facility of which will be closed, seems to welcome new sources of Qatari LNG.

Following the new development program, it is planned to increase the global share of Qatar to six million barrels in oil equivalent daily. In an effort to increase gas production by 30 percent over the next five to seven years, Qatar warns competitors in the energy market and the Persian Gulf countries involved in the isolation (WrapUp 1  Qatar Raises). This measure prevented the attempts of embargo countries to influence the world companies that have rushed to the Qatari market after the statement of production. The specified decision also gave confidence to world markets since Qatar remains faithful to its investment projects, and the intended programs are implemented in a planned mode. It should also be stated that due to the equipment of the ports, Qatar was able to continue the export of LNG.

Conclusion

To conclude, Qatar was able to prove that it is capable of increasing its export of LNG even in the conditions of the embargo imposed against the country on the initiative of Saudi Arabia. The new program announced by Qatar implies an increase in the total LNG production by 30 percent, namely, to 100 million tons per year. In general, the production of NLG by Qatar is likely to grow significantly in the future caused by its great resources, well-developed infrastructure, and the interest of several countries to act as suppliers.

Works Cited

Gloystein, Henning. Qatar Crisis to Speed the Rise of Asias Spot LNG Trade. LNG World News. 2017. Web.

Ministry of Energy & Industry, Doha, Qatar. Doha International Sustainable Energy 2018, n.d. Web.

Mukherjee, Promit and Nidhi, Verma. Indias Petronet LNG Aims to Partner with ONGC Videsh in Qatar Project. Reuters. 2018. Web.

Naji, Abi-Aad. Natural Gas Reserves, Development and Production in Qatar. 1998. Web.

Natural Gas Production in Qatar from 1989 to 2016 (in Billion Cubic Meters). Statista, n.d. Web.

RasGas Delivers First LNG Cargo to Italys Toscana Floating Storage Regasification Terminal. Qatar Gas. 2016. Web.

WrapUp 1  Qatar Raises Gas Capacity amid Gulf Dispute. Reuters. 2017. Web.

Yapin, Yorum. Qatar Energy Profile: Largest Exporter LNG in World  Analysis. Vural Cantug Akkas. 2017. Web.

Introduction

Transporting of Liquefied Natural Gas (LNG) is mostly done by shipping. As the name shows, the gas is often in liquid form. When gas plants are located in remote areas, the shipping method is advantageous over other forms of transport. Therefore, LNG carriers are an important link in enabling the transportation between the liquefaction plant and regasification locations. Typically, LNG carriers are tankers or vessel ships equipped with confinements for transporting LNG in bulk. Due to the rising global demand for LNG products, carriers possessing large carrying capacities are increasingly required. However, the LNG industry has a magnificent safety record due to the nature of the LNG cargo. Risks attached to transporting LNG products have been mitigated due to proper industry practice and laws preventing accidents from occurring or reduce their effects when they occur. Dangers that are linked to handling LNG goods are more and should not be understated or exaggerated. Accordingly, shipping of LNG products requires great care and safety measures because of the flammability and explosiveness which when not considered may result in fire hazards and consequent loss of lives.

The liquefaction of natural gas has certainly made its transportation to be more efficient. As a matter of fact, the transportation reduces great distances to be covered while ferrying the fuel to areas where there is demand. LNG is used domestically for purposes such as cooking and heating, while the fuel is used in public institutions for agricultural purposes, by industry to generate electric power. Not only is LNG a source of energy, but also as a feedstock for the petrochemical industry in the manufacture of plastics, fertilizers, and other products. As evidenced, LNG is a useful product whose carriage depends on how it is handled.

Handling of LNG products depends on the understanding of the hazards that are associated with the commodity. Strikingly, some measures must be adhered to when the product is on-board. While transporting LNG cargo, primary containment methods are important as they provide suitable materials for storage tanks and equipment during ferrying. Therefore, safety measures should be employed when transporting LNG cargo on-board and the methods should be continuously improved to mitigate risks and even deaths.

Literature Review

Coating of Tankers to Avoid Corrosion

Different research studies have established the safety measures that apply to the shipping of LGN cargo. Nevertheless, the studies do not give explicit guidelines on how the products should be handled onboard but rather in general terms. Some studies assert that an important requirement in the transportation of LNG cargo is that the containments for carrying the product are made of non-reactive metals such as lead (Nwaoha, John, and Agbakwuru, 2016). This is always the case to avoid corrosion between the transported liquid and the walls of the container which might lead to a fire outbreak. As such, the carriage tanks of the liquid in a ship are always made by the employment of appropriate engineering designs (LaFleur et al., 2016). Another way of ensuring that leaks or spills can be contained when they occur is through coating the tanks with an additional layer of protection. In this way, the product is captured in case of a spill during transportation (Nwaoha, John, and Agbakwuru, 2016). Essentially, the material type and structural designs of the transportation tanks are among the most important measures of ensuring during the transportation of LNG products.

Keeping of the LNG at Extreme Low Temperatures

Most importantly, the temperature of the ships or tankers of LNG cargo is also considered to avert any danger that may result from the transportation of such flammable products. Some studies have shown that LNG cargo is carried at ambient temperatures in spherical or cylindrical containment and thus limits the use of thermal insulation that is needed by other gas carriers (Krikkis, 2018). Notably, studies do not specify the certain value for the ambient temperatures under which LNG cargo are carried. In fact, other researchers have hypothesized that the temperatures should be kept as low as possible to ensure that the gas is maintained at inert states to prevent any form of heating (He et al., 2019). A typical form of providing safety to the ships carrying LNG cargo has been the insulation of the outer surface of the tanker above the main deck to protect the whole tanker against thermal radiation (Krikkis, 2018). Certainly, insulation plays a crucial role in reducing friction between the LNG and the tankers’ wall hence preventing any rise in temperature that can cause a fire outbreak when the cargo is being transported.

Ways of Improving the Measures

Apart from the safety measures aforementioned, different researchers have proposed some ways of improving the measures. On insulation, some studies suggest that the insulators should be coated with phenolic or polystyrene panels and projectors, bonded with incendiary solvent-based paste (La Fleur et al., 2016). Proper care is also taken to ensure that no hot work is allowed in the hot space to prevent sparks from entering the hold through the access hatches or ventilations (Krikkis, 2018). With this type of safety measure, the polystyrene insulation is covered by a protective aluminum foil that guarantees sparks are provided such that the inflammable insulation is not exposed and ignited. Furthermore, some authors prefer membrane tanks vessels as the ships to carry LNG cargo. In their arguments, the membrane tanks are insulated with double layers of insulation separated by a secondary material (Krikkis, 2018). The membranes are also proposed to be permeable, with the spaces sufficiently purged before any hot work is applied. Undeniably, the researches of safety measures during transport of LNG are categorically based on the carriers and tankers and not the human personnel operating the ships.

In conclusion, container structural design, and the type of material used to make it a major consideration, when analyzing the safety standards of carriers of LNG cargo. Temperature is also another aspect that is important to the carriage of LNG goods. Be that as it may, a raft of proposals is still required to improve the effectiveness of the measures of enhancing the safety of LNG transportation. For instance, the insulators covering the tanker carrying LNG cargoes should be coated with polystyrene panels that are bonded with combustible adhesives. Other researchers propose membrane-type vessels to mitigate risks associated with transporting flammable LNG cargo. Notwithstanding, the investigative studies do not provide an elaborate protective mechanism that should be adopted by the personnel working in LNG cargo-carrying ships. It is for this reason that another research should be conducted to ascertain the methods of maintaining safety for humans during the transportation of LNG cargo. In essence, the human resource in charge of controlling the LNG cargo-carrying vessels should be assured of their protection before any other thing.

Methodology

Research Design

In order to determine the safety measures during transporting LNG on-board, a qualitative research design was adopted. I interviewed 30 different captains from various companies which were involved in the transportation of LNG cargoes. I adopted the method because I wanted to understand the captains’ perception of methods of ensuring safety during shipping activities (Kothari, 2020). I chose the qualitative design because it provided many responses from which I was able to discern which was the most commonly used technique by different companies. Consequently, I obtained data that I relied upon to reach conclusions based on the responses of the interviews.

Variables

Primarily, variables were the measures that the interviewees outlined in their questionnaires. These specific variables did not assume a specific value and the prevalence of each measure was dependent on how the frequency of its mention from among the thirteen respondents. Interestingly, some measures were found to be shared among almost all the companies while others were specific to certain companies. In reality, some variables were dependent on each other and that is why they were referred to as the dependent variables (Kothari, 2020). On the other hand, other variables mentioned were independent of no other and they were referred to as independent variables (Kothari, 2020). In the group of dependent variables, structural design was undoubtedly dependent on the shape of the material used in making the tanker of the ship. The material of the ship was an independent variable and as such, other factors such as the temperature of the LNG were dependent on it. Essentially, it was evident that many methods of safety measures during transportation of LNG were mentioned, yet the most prevalent ones were the temperature and structural designs employed in constructing the gas tankers.

Sample Population

As mentioned the sample population of thirty captains was selected from a population of 505 captains. The population of 505 represented the number of transport companies involved in the business of shipping LNG cargo. This sample was convenient because of different reasons, first to me as a researcher and also to the companies that I was interviewing. The sample size of thirty was convenient because of its relatively lower costs of sampling compared to when the whole population could have been chosen (Kothari, 2020). Also, the smaller sample saved time in comparison to many hours that could be taken when administering interviews to the whole population of 507 companies in Qatar. An additional advantage that I derived from the sample was the creation of a good rapport that I created with the respondents. Precisely, the choice of a smaller sample size of thirty ensured convenience through the collection of intensive and exhaustive data thereby helping against spending more resources on data collection.

Instruments/Materials

The research studies were conducted based on one-on-one interviews and questionnaires. I administered the drafted series of questions to the participants, either through phone calls or personal interviews. In fact, I was able to obtain a lot of information from the responses I got from the questionnaires. Each administered questionnaire consisted of five open-ended questions that were to be taken by the participants. I was able to interview sixteen people from a personal interview and fourteen people were interviewed over the phone. Since I was not present in some cases, in my absence some participants could express themselves brazenly without hiding information (Kothari, 2020). Computers also provided me with assistance as I was able to provide real-time responses from participants whom I was not able to interview directly. I would only read them the terms of the interview and the questionnaires and from their responses, I was able to obtain quick feedback (Kothari, 2020). Essentially, the research was predominantly based on questionnaires and phone interviews, and even though the phone conversations, the questions narrowed to the questionnaires I had formulated.

Procedure

Stratified random sampling enabled me to obtain the sample size of 30 companies represented by the thirty interviewees. After identifying the 505 shipping companies, I divided them into smaller strata which I assigned various Roman numerals from I to V. Each stratum had 101 different LNG cargo transport companies from a specific geographical region within Qatar. It meant that 101 companies to be interviewed were selected and clustered from a specific location. In the first pick, I selected the seventh company from every stratum till I obtained distinct companies that represented each subpopulation (Kothari, 2020). However, my choice of a specific company from every group was based on simple random sampling. Repeatedly, I did the same procedure and after the sixth turn, I obtained 30 companies as my sample. With the sample picked by random stratification, it was diverse and almost every region in Qatar was represented (Kothari, 2020). Definitely, different characteristics across many companies were represented in the sample through stratified sampling.

Method of Analysing the Results

From the data obtained, a difficulty arose when one had to determine the actual measures that are generally taken to avert hazards that arise from the transportation of LNG cargo. Statistical analysis was used to determine the most common techniques of risks mitigation from the various responses gotten from the 30 respondents. Every unique response that was noted from every questionnaire was noted to ensure that all measures listed by the participants were captured to reduce biases. Analysis of the data showed that at least 10 out of the 30 captains provided similar measures applied in their companies to reduce dangers associated with transporting LNG cargo. For instance, 25 captains noted that insulation of the tankers was the best method for preventing dangers when shipping the liquid gas. Material type for transporting the LNG was also a major consideration for many shipping companies as 28 responses were obtained from the total sample of 30. Analytically, the statistical measure of mode was applied to different variables which were regarded as responses provided to infer from the whole population of the shipping companies.

Despite the results gotten from the research, this design might be characterized by some errors that make the qualitative research design to be unreliable. Firstly, as the statistical measure that was depended upon was singly the mode, it is difficult to determine the relationship that may exist between the measures. More precisely, the causal relationship cannot be determined between the variables. In addition, the results obtained are prone to bias as one single captain was interviewed from the company, and they may not be reflective of the organization’s norms and practices. Moreover, the research was limited in its scope due to the responses obtained from the responses. The interviewees’ responses did not give the actions that personnel themselves undertake with regards to keeping themselves safe especially during shipping exercises. In point of fact, the questionnaires are bound to be erroneous in providing facts about measures applied in the companies due to the social desirability as a flaw.

Results and Analysis

To supplement the results obtained from different research works, a qualitative approach was used to determine the relevance of the research and also the authenticity of the results. The method was employed to give detailed information about the safety measures that are used in transporting flammable LNG especially when on-board. This section reflects on the results that were obtained after the questionnaires were administered to the captains either through the phone or directly. It presents the analysis of their verbal responses during the interviews. Long and informal interviews concerning the measures that the captains witnessed being practiced by their respective companies were explained by most of them.

Most captains indicated from their questionnaires that temperature was an aspect of the safety of transporting LNG that it was the most checked parameter before the gas was transported. According to most of the participants, the temperature was important that the cargo had to be carried in ambient temperature to minimize the usage of thermal insulators. Although many captains noted that insulation was of the tanker was a proper move, maintenance of the surrounding temperature was the best measure when LNG cargo was being transported. The results showed that 25 responses were gotten in agreement that temperature control was crucial in safety maintenance during the shipping of LNG cargo.

The questionnaire also aimed at ascertaining the protective gear worn during the transportation of LNG cargo. 11 out of 30 participants claimed that while the protective wear was necessary during the transportation of the liquid gas, their employers did not provide such attires. The captains were forced to buy such clothing on their own without the contribution of the employer. Nineteen others said that their employers were more concerned with the liquid gas reaching its destination than the safety of the captains hence lack of protective wear was not a factor to most companies.

Third, in the questionnaire was the question aimed to address insulation of the tankers when transportation was set to happen. On this particular question, the captains were quite certain that insulators were used to cover the outer surface of the tankers above the main deck to protect the entire tankers against thermal radiation. Their various statements explained that such a rise in temperatures was dangerous during transportation as it was attributable to fire outbreaks and explosions that have led to the death of some captains in the past.

At last certain answers were sought for two related questions which touched on the type of material for making the tankers for carrying LNG cargo as well as the structural designs of the tankers. All the captains, 30 in number, agreed that most companies they were working with were often in possession of circular-shaped tankers for transporting the LNG products. Due to the unanimous agreement of the captains on the circular or cylindrical shapes, it was assumed that the shapes were a manifestation of the compliance guidelines concerning the transportation of liquid natural gas. The tankers were also found to be made of less reactive metals such as lead to minimize corrosion between the LNG and the containment vessels. Critical evaluation of the results showed that LNG transporting companies complied with safety and measures guidelines in most ways.

Conclusion

In summary, safety measures are always employed during the transportation of LNG products as most research studies have shown. However, the safety guidelines require constant improvement to ensure compliance and mitigation of the risks that may be associated with spills, leakages, and fire outbreaks. Firstly, the choice of the material for making LNG cargo should be of non-reactive inert metals that cannot react with the fluid. The second measure that aims at curbing dangers and hazards associated with the transportation of LNG cargo is the choice of appropriate engineering design in making the carriage tank of the LNG cargo. Spherical and cylindrical shapes have been the most accepted shapes in transporting LNG products. Temperature regulation is an additional mechanism for safety maintenance during the shipping of the LNG cargo. As explained before, the temperature of the tanker carrying LNG is maintained at the temperature close to the surroundings’ to guard the whole tanker against thermal radiation. Regardless of the myriad of measures that have ensured the safety of transporting LNG cargo, great improvements need to be made to keep high standards of safety as has been the case.

Effecting proper changes on the measures of maintaining safety while transporting LNG products needs to be pegged on insulation, as a scientific phenomenon. Different materials need to be added to the insulators to increase their efficiencies. Illustratively, materials such as phenolic and polystyrene should be used to coat insulators that are again coated with aluminum foil. This enables monitoring of sparks such that the inflammable insulation is not ignited to cause a fire. The use of membrane tankers should also be embraced for efficient functioning and limiting of hazards that may arise during the transportation of the flammable LNG cargo.

Inarguably, interviews work to confirm or reject a researcher’s hypothesis about a specific study. In this case, an interview conducted with 30 individuals confirms the earlier research question that sought to establish the measures that help in the maintenance of safety during transportation of LNG cargo. By the responses, it is discernible that the findings of the research and the literature review are in agreement. Ideally, the data collected confirms the findings of the earlier studies that enumerated some specific factors as safety measures during transportation of LNG products.

Recommendations

Investigative researches have established the measures that are only inclined towards the tankers and vessels concerning issues of safety when transporting LNG cargo. Despite the stated mechanisms, measures that aim at protecting personnel working on the ships are not considered. Great emphasis should be laid on the captains and other personnel for a harmonious relationship that is geared at eradicating dangers that may arise. Any initiative aimed at providing humans with safety inculcates intrinsic motivation within the individual and boosts work performance by great percentages.

To begin with, future researchers need to conduct an analysis and outline the best course of action that promotes the safety of both humans and the vessel carrying LNG products. In order to conduct proper research, the researchers need to direct their resources on proper evaluation of the importance of human personnel as opposed to the machines alone. This is the very first step that will not only secure proper outcomes in future research but will also eliminate the disparity between humans and shipping vessels that is evident from the earlier researches.

Going forward, more resources should be channeled towards doing thorough conclusive research that removes biases by interviewing more than one individual in a company. Based on the data obtained from the research, more attention should be placed on humans by giving them more training on the issues of proper safety management during transportation of LNG. This specific guideline ensures that everyone is informed about the importance of maintaining safety during competition, as well as, making them useful in improving the measures.

Future researches should also focus on the relationship between temperature and insulation and study how the scientific terms relate to the vessels’ safety during transportation of LNG cargo. The research would form the basis by which scientific innovation would thrive by enhancing technological advancements through the study of the relationship between several scientific phenomena. Other terms that should also be studied to establish any linkage are the engineering design and the type of material that is used in making the containment tankers. All the investigative inquiries are only important when they establish the interlink between scientific terms in opening new learning ways.

Another recommendation is also to use the mixed designs of research approaches. Due to the limitations of each research design, the application of both helps in applying the relevant technique for each specific case. While the qualitative analysis helps the researcher to obtain a lot of information from the questionnaires, the quantitative research design helps in calculating other important measures of population parameters that allow inference from the population. The explanation of any obtainable data should therefore be dependent on the research designs. Usage of two research designs within the same research is also advantageous to the researcher due to the ability of the mixed to research design to eliminate weaknesses of qualitative and quantitative designs as appropriately. Therefore, future research on safety measures should focus explicitly on determining the relationship between variables themselves.

Reference List

He, T., Chong, Z., Zheng, J., Ju, Y. and Linga, P. (2019) ‘LNG cold energy utilization: prospects and challenges’, Energy, 170, pp.557-568. Web.

Kothari, S. (2020) Research methodology: methods and techniques. 4^th edn. New Delhi: Oxford Book Co.

Krikkis, R. (2018) ‘A thermodynamic and heat transfer model for LNG ageing during ship transportation. Towards an efficient boil-off gas management’, Cryogenics, 92, pp.76-83. Web.

LaFleur, A., Groth, K., Liao, H., Lopez, C. and Muna, A. (2016) LNG safety assessment evaluation methods, Task 3 letter report (No. DOT/FRA/ORD-16/25), United States. Federal Railroad Administration. Web.

Nwaoha, T., John, A. and Agbakwuru, J. (2016). ‘LNG carriers safety: a research perspective’, International Journal of Science and Technology, 5(7), pp. 324-338. Web.

Introduction

In 2015, it was estimated that within five years international trade of liquefied natural gas (LNG) would grow more than two times (Carpenter 107). The increase in demand for natural gas is justified by the acknowledgment of advantages it demonstrates in terms of power generation, particularly from the environmental perspective. A significant contribution to the development in this sphere is expected from floating liquefied natural gas (FLNG) technologies. FLNG is a principally different way of LNG production, storage, and delivery. It will create a system and an infrastructure, where many activities associated with the natural gas production chain will be performed in the field. The entire process from extracting natural gas to delivering it to the market will be modified by the FLNG model, which makes FLNG a game-changer in the industry.

Floating liquefied natural gas

First of all, the FLNG technologies expand the availability of many gas pools around the world, the access to which has been previously challenged. According to recent estimations, approximately half of all gas available for extraction on the planet is located out in the sea, at a depth of more than 200 m and a distance of more than 250 km from the nearest shore (Carpenter 107). Dealing with these pools is difficult and often unprofitable. Due to this, much effort has been dedicated within recent decades to finding new solutions that would allow bringing this gas of difficult access to the market. The FLNG technology became such a solution, as it allows producing, storing, and transferring LNG at sea (Boekhorst, Steenson, and van der Velde 1). Therefore, more gas fields can be developed.

Second, the FLNG technology will significantly modify the industry because its introduction will require reconsidering and reconstructing many aspects of the existing infrastructure. Currently, the entire process is built around the model, in which gas is conveyed to onshore facilities where it is processed and prepared for further use. Introducing FLNG implies creating offshore facilities performing these functions, which means that the established infrastructure, including extraction, works equipment, pipelines, shipping, and other components of it will be changed dramatically (Boekhorst, Steenson, and van der Velde 1), affecting technological needs of the industry, its workforce, and its prospects.

Finally, for FLNG to become a game-changer, it needs to be adopted by major industry players. It is likely to happen due to the various advantages that these technologies possess. For example, FLNG allows achieving cost savings (Carpenter 107) and ensuring higher safety (Boekhorst, Steenson, and van der Velde 1). For example, an FLNG system in the sea will eliminate production platforms from the system, as well as processing platforms, offtake vessels, compressors, and pipelines, thus reducing the costs. Despite major changes in the system of LNG production that will be required by developing the FLNG technologies, large corporations demonstrate their willingness to pursue these technologies, which indicates their growing recognition of the benefits that the use of FLNG will bring.

Conclusion

The FLNG technologies are expected to become a game-changer because, first, they will make gas fields, the development of which has been challenged due to economic reasons, available for the market; second, they will change many aspects of the current infrastructure in the industry; and third, many major players are likely to shift to these technologies due to various benefits they provide. Judging from this, FLNG is expected to affect the power market to a significant extent in the nearest future.

Works Cited

Boekhorst, Alexander, Bruce Steenson, and Harry van der Velde. “FLNG: Applying Advanced Technology to Bring More Natural Gas to Market.” Offshore Technology Conference, 4-7 2015, Houston, TX, Offshore Technology Conference, 2015.

Carpenter, Chris. “Floating Liquefied Natural Gas Comes of Age.” Journal of Petroleum Technology, vol. 67, no. 4, 2015, pp. 107-109.

Introduction

Russia’s economy is ranked 9^th in the world in terms of GDP, 6^th in terms of purchasing power and 3^rd in terms of military spending. The country’s GDP was estimated at around 2.4 trillion dollars (FYE 2011) and a per capita income of 16 736 dollars (Index Mundi, 2012).

According to the 2012 estimates, the Russian population is believed to be over 140 million with an unemployment rate of 6 percent. An average Russia earns approximately over 640 dollars a month. Mineral fuel, oil, metals and timber represents over 80 percent of the country’s exports.

Despite of the increased energy prices, mineral fuel and oil only contributes 4 percent of the country’s GDP and the government expects a further drop in this figure (Index Mundi, 2012).

Russia is not only the largest county in the world but also the richest in terms of mineral resources. The country covers over 75 percent of the former Soviet Union territory. The country holds the largest natural gas reserves and is among the top ten in terms of crude oil reserves.

In addition, Russia is the fifth producer and the third largest exporter of coal in the world. In terms of coal reserves, the country is second only to the United State of America. Russia’s mineral fuels also include uranium which is used in the local nuclear power plant (Grama, 2012, p. 82).

Russia’s mineral fuel

According to the U.S department of energy, Russia’s natural gas reserve is about 50 trillion cubic meters. Most of the country’s gas reserves are located in West Siberia. However, Orenburg region and Komi Republic in the North also produces significant amounts of natural gas.

Russia is the second largest producer and exporter of natural gas in the world, contributing more than a third of the global natural gas export. Local consumption of the natural gas is about 70 percent. Therefore, local demand still allows for export. The country’s natural gas is mainly exported to Europe and Central Asia (Grama, 2012, p. 83).

Three natural gas fields, Yamburg and Urengoi and Orenburg, accounts for more than 79 percent of the country’s production. Natural gas production is mainly under the control of Gazprom Company. The Russian government is the main shareholder of the company with 39.89 percent ownership (Grama, 2012, p. 85).

With the discovery of new gas fields and increased capacity, Russia’s natural gas production is expected to increase by 890 cubic meters in 2020. The rising trend of natural gas production has enabled the country to meet its domestic demand and increase export (Levine, 2001, p. 11).

According to the U.S energy department, Russia’s oil reserve is about 7 billion metric tons. Major oil reserves are also based in the West Siberia basin (Tomsk, Tyumen and another 300 field), Ural basin (Volga field) and Pechora Basin (Timam field) (Matthews, 2008, p. 372).

In 1980s U.S.S.R was the leading global producer of oil, with Russia accounting for more than 95 percent of the overall production. However, the fall of the Soviet Union and other economic factors including unstable oil prices in the global market and the dominance of U.S dollar saw a sharp decline in the country’s oil production (Grama, 2012, p. 85).

Currently, Russia produces about 500 million tons oil per year and some experts argue that the country can afford to maintain the same capacity up to 2050 given their potential reserves. The country’s petroleum export is mainly crude oil. Russia crude oil export was estimated to be about 8.4 million barrels/day in 2011.

Major importers of Russia’s crude oil come from central Asia (China and Japan), Europe (former members of the Soviet Union) and North America (U.S and Canada).

The country’s total coal reserve is estimated to about 150 billion metric tons which is mostly brown and hard coal. There was a massive decline in coal production in the late 80s and 90s but the situation changed since 2000.The growth of coal production has surpassed the growth of petroleum and natural gas production.

Unlike oil and gas whose local consumption is over 70 percent, over half of the coal produced is exported. Ninety percent of Russia’s coal exports go to the European markets (Lawson, 2002, p. 8). Coal production is expected to increase with the depletion of oil and natural gas reserves in the future.

Even though the country has more than 20 coal basins, most of the coal produced comes from 7 basins. The country’s 7 major basins are Donetskii basin, Moscow basin, Pechora basin, Kansk-Achinsk basin, Irkutsk basin, Kuznetski basin, and South Yakutsk basin. The country’s coal is transported through railroad and sea (Rosner, 2010, p. 3).

Russia’s nuclear fuel is principally Uranium. However, the country also produces plutonium but in small quantity. According to the London Uranium institute, the country has over 200000 tons of Uranium reserves.

The country has only one uranium mining project and all of it is consumed locally. In other words, Russia does not export Uranium instead it imports more. The country has nine nuclear power plants with over 20 million kilowatt capacity (Levine, 2001, p. 9).

Russia-Canada trade

The bilateral relationship between Russia and Canada has increased significantly over the last decade (Government of Canada, 2012). Canadian exports to Russia have increased by 154.3 percent since 1998. The figure increased from 180 million dollars to over 1.58 billion dollars in 2011.

Most of the Canada’s exports to Russia include automobiles and parts, machineries, aircrafts and parts, and processed food. On the other hand, Russia’s export to Canada totaled about 1.35 billion dollars in 2011. Canada’s imports from Russia mostly include mineral fuels and oil, metals, gem stones, rubber and inorganic chemicals.

The trade relationship between these countries also includes service exchange. In 2011, Russia received 500 million dollars for services rendered and spent 260 million dollars for services received (Government of Canada, 2012).

According to Khondaker (2008, p. 2), Russia and Canada have become significant trade partners, even though trade between these two countries is still low compared with other countries. Russia imports largely manufactured goods from Canada.

On the other hand, its exports are mainly coal, crude oil and natural gas. According to Khondaker (2008), if not for mineral fuels, Canada would have registered a surplus of more than 700 million dollars in 2008 (p. 3). Mineral fuel represents 16 percent of the whole Canada’s exports from Russia.

Over the last ten years Canada has registered a trade deficit with Russia. The deficit was estimated to be about 1.25 billion dollars in 2008 (Khondaker, 2008, p. 4; Matthews, 2008, p. 372).

Conclusion

Russia is among the top global producers of petroleum, natural gas, and coal. The country’s mineral fuel and oil reserves are in billions of metric tons. The bilateral trade relations between Russia and Canada have considerably grown over the last one decade.

Russia import mainly manufactured goods from Canada and exports mineral fuel and crude oil. The trade balance between these two countries tends to favor Russia. However, mineral fuel and oil only contributes less than ten percent to the GDP.

References

Government of Canada. (2012). Canada Russia Relations. Web.

Grama, Y. (2012). The Analysis of Russian Oil and Gas Reserves. International Journal of Energy Economics and Policy, 2 (2), 82-91.

Index Mundi. (2012). Russia Economy Profile. Web.

Khondaker, J. (2008). Canada’s Trade with Russia: 1998 to 2007. Canadian Trade Highlights. Web.

Levine, R.M. (2001). The Mineral Industry of Russia. Journal of Geological Survey, 4 (1), 5-30.

Matthews, M.J. (2008). Energy competition and international relations, International Journal of Global Energy Issues, 29 (4), 371-376.

Lawson, P. (2002). An Introduction to the Russian Coal Industry. Charleston, West Virginia: Marshall Miller and Associates.

Rosner, K. (2010). Russian Coal: Europe’s New Energy Challenge. Climate & Energy Paper Series 2010.

Introduction

The following essay is concerned with the effects of natural gas drilling and health effects on the community. The essay also examines the solutions of the natural gas drilling and health effects on the community.However, it is important to first determine the meaning of natural gas before considering its effects on the community. Natural gas refers to a gas that consists methane and its one of the main energy sources in the modern world.

The natural gas simply refereed to as the gas contains Hydrogen Sulfide (H2S) which is harmful as far as the people’s health is concerned. The gas is present in abundance in most parts of the United States for instance Texas, New York among other states. The gas is extracted by a method which is referring to as hydraulic fracturing and it is extracted from the underground rock through drilling the solution vigorously into the ground at extremely high pressures.

The solution usually contains some poisonous substances which contaminate the groundwater and this has thus been the matter under discussion in most parts of the United States in the past few years. Many citizens in the United States have complained to the state as well as the federal agencies about the effects as a result of natural gas drilling (West Coast Offshore Exploration Environmental Assessment Panel, 1986).

Effects of natural gas drilling and health effects on the community

The natural gas drilling usually has effects on both the environment as well as the community as it affects the air, water and the soil as well as the people who live near the drilling locations. Thus the natural gas has the following effects as far as the communities are concerned;

The drilling of natural gas often leads to an increase in the traffic jams. The roads that leads to the drilling areas are usually not meant to be used by huge trucks and so their continuous use makes the roads to wear out.

Much time is wasted as a result of traffic jams as the lanes are not wide enough for tracks to turn change directions easily. The drivers on the other hand usually violate the traffic laws by not maintaining a single lane and hence causing accidents. This poses danger to the residents as there are more than three accidents that are reported to have occurred in a day in the drilling locations.

In Silver Hill for instance, it is very hard for a day to end without an accident involving the drilling trucks being reported. The roads are usually left in a poor state as no repairs are done and this inconveniences the residents who live in natural gas drilling areas. For instance, the roads are barricaded during winter season as a result of multiplication of vehicles daily. This forces the local residents to look for other roads and this is quite inconveniencing as much time is wasted for wrong reasons (Epstein & Manzoni, 2006).

The other effect as a result of natural gas drilling is water pollution. Huge volumes of used coal often referred to as cinder are laid down particularly during winter season so that the trucks can have some grips. During summer, the snow liquefies causing the solution to mix with the underground water. This is dangerous because when the dust breathed, it causes such effects as damage of the nervous system as well as the organs, eye iritatation, unconsciousness, death among others.

The hydraulic fracturing process also poses danger to the residents in that dust particles, water as well as chemical substances are put into the wells so as to smash the underlying rocks. When the underlying rocks are fractured, the water that was blasted returns to the wells causing the water in the wells to be salty. The salty water contains harmful chemicals which when drunk can cause serious effects.

Natural gas drilling is also characterized with the problem of flaring which arises when the drilling firms burns the excess flammable vapors. This is dangerous since the natural gas contains hydrogen Sulfide which is toxic. The gas also produces detectable odor and when inhaled, it can cause death or such adverse effects as paralysis of olfactory nerve, neurophysiological abnormalities among others (Mokhatab, et.al.2006).

The negative effects of natural gas drilling contributes to falling prices of real property i.e. real estate is a spatial commodity implying that its value is directly linked to what is going on around it.Thus, the investors finds it hard to sell their properties as buyers don’t like to buy houses that are located near drilling areas due to the activities that happens there on daily basis.

Usually, the people’s willingness to buy a land or a given property is influenced by such factors as location e.t.c.Therefore; the loss of value with regards to real property in natural gas drilling locations is as a result of lack of inaccessibility. A real estate that is easily accessible, found in a good natural aesthetic, social and physical environment of good size and quality attracts more buyers.

Natural gas drilling is characterized by loud noises as well as air pollution and this often causes poor health. The residents who live in natural gas drilling areas often companions about the noise that is associated with drilling.

The noise usually varies in accordance with the space between the compressor and the residential area and therefore, those people who are close to the drilling location are greatly affected. The strength of the wind also makes the noise level to change and the residents can hardly sleep before they hear the loud and disturbing noise of the drilling machines.

The tracks are also a common source of noise. There are huge traffics of these tracks and they produce loud noise especially when hooting making the residents to have a feeling as though they live in an area that was meant to be an industrial zone. The residents in this area have a right to be free from unwanted noise and so the drilling companies violate their individual rights.

Natural gas drilling also has adverse effects as it causes injuries to the persons who are employed in this sector. Some of the accidents that may arise as a result of natural gas drilling includes the following; the production tanks usually explodes in the oil drilling areas and has caused death and other serious effects such as incapacitation, also the wells have been known to blowout, the heavy equipment poses a danger because it can clash someone, there are injuries associated with the unsecured ladders among others.

The effects of natural gas drilling ranges from death, severe burns, blindness, deafness, limb breakages among others. The family members of these workers are greatly affected and in case of death, the children are left without anyone to care for them.

Natural gas drilling has also been characterized with flash floods. These flash floods have devastating effects such as demolishing houses, destroying bridges, uprooting the trees, road damages, traffic congestion, and farmland damages among others. Thus the flash floods affect the daily activities of residents who live near the natural gas drilling locations. Flash floods also lead to loss of people’s lives and so the oil drilling companies really poses a danger upon the lives of the communities.

Natural gas drilling may also cause volcano eruptions and this is dangerous as far as people are concerned. Volcano eruptions have been known to have catastrophic and devastating effects in areas where they occur. People get killed and a high number are forced to leave their land and migrate elsewhere.

The volcano eruptions also has an effects with regards to the global climate earthquakes may also result following a volcano eruption and this is really threatening as far as the communities that live near to where natural gas is drilled (James & Lahti,2004).

There are numerous oil spills as well as gas leakages in the drilling areas and this has an effect of killing the aquatic life such as fish e.t.c.once the oil drains into seas and lakes. Once the chemical solutions get into waterways as a result of the fracturing process spreads at a faster rate .This is due to the fact that the currents facilitate the solutions to spread faster.

This in turn has an effect on the communities that relies on fishing as their means of livelihood. Gas leakages also causes respiratory diseases, imparing the proper functioning of the lungs as well as asthma when breathed.Also, explosions may occur as a result of natural gas exposure and this is dangerous as far as the health of someone is concerned.

Natural gas drilling has been characterized by an increase in population due to the employment opportunities that the occupation generates. The rise in population has adverse effects which include the following; high population growth has the effect of increasing the prices for rented houses in places where the natural gas is drilled.

This is due to the fact that there is high demand and so the landlords are tempted to increase the prices in an effort to maximize their profits. There are also increased crimes as a result of increased population in the oil and natural gas drilling locations. Cases of rape, murder, and robbery among others are usually reported on daily basis.Also, the social amenities such as hospitals, schools, recreational grounds among others are usually given pressure.

The natural gas drilling has an effect of damaging the wildlife as a result of water pollution and this in turn causes a decline of the number of tourists. This decline implies that the government losses revenues as well as foreign exchange earnings. It also leads to massive unemployment for the local residents who are employed in the tourism sector (James & Lahti, 2004).

Natural gas energy is much cleaner as compared to oil but despite this, there are greenhouse gases that are emitted in the air during the drilling process and this is harmful to the local residents. The greenhouse gas is dangerous as it is known to trap heat as well as carbon dioxide and this has an effect of causing the global warmings.This global warming have caused a reduction of fresh waters and has also seen an extinction of some of the endangered species in the world.

These animal species are also forced to change their habitats implying a reduction of the number of tourists in the gas drilling areas. The rains have also been affected implying that the farmers are not able to produce more due to persistent droughts. Many families that rely entirely on agriculture in gas drilling areas have been affected as a result. The gas leakages also causes harm with regards to plants and this thus affects the farmers who live in gas drilling areas.

The natural gas drilling can also bring about the Normally Occurring Radioactive Material commonly known as NORMS into the surface and this is harmful as far as the public health is concerned. Normally Occurring Radioactive if not handed in a proper manner can even cause deaths.

Other effect as a result of Normally Occurring Radioactive Material exposure includes cancer, birth defects among others. Exposure to Normally Occurring Radioactive is dangerous as far as the communities that lives in the drilling areas are concerned due to the long term effects that it has when either ingested or inhaled (National Research Council, 2003).

Natural gas drilling also puts strain on the available healthcare services as a result of injuries that result during the drilling process. The town emergency team is usually overworked due to the job related injuries that occurs to the employees who works in the drilling sites.

The noise that is produced during the drilling process often affects the school children in that it makes them to lose concentration and hence making them to attain lower grades as compared to those students who attends schools that are situated in a quiet enviroment.Also, the patients in hospitals are greatly affected by the loud noises that are produced by the trucks as well as the drilling machines (Geological Survey, 2010).

Solution to natural gas drilling and health effects on the community

The community that lives in areas where natural gas is drilled can take the following steps in order to cope with the harmful effects of natural gas drilling; they should stop drinking the tap water due to the fact that the drilling process contaminates the ground water. As a result there is numerous chemicals that are harmful are usually spread during the fracturing process. Though bottled water is much costly, it is much safer to use it as far as the health is concerned. The residents should also find close substitutes of water such as juice.

Also, they should abandon those areas that are associated with natural gas drilling. This is the most ideal way of dealing with the negative effects of natural gas drilling.They should put priority to their health and leave these areas even if it means parting away with their familiy heritage .

The government should act promptly so as to safeguard the well being of its citizens.Essentially,Federal laws have been know to exempt the oil and gas industries from such Acts as clean air, water as well as drinking water and therefore the Federal laws should be revised so as to put regulations to the gas industry.

This will in turn make the gas industry to be conscious of their actions with regards to the health needs of the general public. Those gas companies that are found to have violated the rights of communities should be heavily fined and if possible their operating licenses cancelled.

The local government should also make it compulsory for the truck drivers to pay taxes that will be used in repairing the roads.Usually, the trucks damages the roads making it hard for the local residents to drive on and so, the government should set up tolls for each road user.

This will help to minimize the number of accidents that are associated with poor roads and also enhance efficiency and effectiveness on the roads. The trucks number in a day should also be controlled as well as their weights so as to ensure that they don’t damage the roads (National Research Council, 2003).

The government should also ensure that safety measures are put in place by the gas drilling issuing them with licenses. The government should thus refrain from issuing the oil companies with licenses until it is certain that the wellbeing of the communities is not at risk.

However, before a drilling process commences, the government should do the following; the government should come up with water as well as land guidelines that will provide the oil companies with instructions on how they should carry out their activities .This guidelines will ensure that the oil firms acts in a responsible manner as far as the public health on communities is concerned (West Coast Offshore Exploration Environmental Assessment Panel, 1986).

The government should ensure that there are proper ways of handling the hazardous waste by requiring bonding for the reservoirs. Those gas companies which do not comply with this requirement should not be issued with operating licenses. Steel linings should be recommended instead of plastic ones for reservoirs that contain the drilling solutions due to the fact that plastic linings are usually not strong and can break leading to spillages and in turn contaminate the groundwater.

The government should also provide education on the effects of natural gas drilling to the communities that live in the oil drilling areas. This will enable them to fully understand the impacts and thus devise strategies on how to handle them.

There should be laws that restrict the gas companies from operating near the schools or hospitals and measures should be taken on those companies that are found to be violating this law.

With regards to the declining property values, the local government should come up with plans that are aimed at increasing the demand for instance, improving the road networks in these areas, access credit at good terms to investors who wishes to buy houses these areas, lowering the cost of constriction materials among others (West Coast Offshore Exploration Environmental Assessment Panel, 1986).

Conclusion

Natural gas drilling poses danger with regards to the communities that lives near the sites. The effects as a result of natural gas can be felt for many years. Natural gas contaminates water thus affecting people as well as the aquatic life. It also affects the wildlife, farming lands, roads, plants among many things. Natural gas also has an effect as far as global warming is concerned.

Despite the above disadvantages, natural gas drilling also has some advantages which include the following; natural gas is much cleaner as compared to other modes of energy such as fossil fuels, it provides employment to the larger communities that lives where the sites are located, it is applied in many homes for cooking among others.

However, there is need for the government to put up regulations as far as drilling is concerned so as to protect its citizens from the negative effects of natural gas drilling. The communities too should take responsibility of protecting themselves from the adverse effects of natural gas by taking such measures as choosing not to live near the gas drilling firm’s e.t.c.

Reference List

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Geological Survey. (2010). Bulletin – United States Geological Survey. US: The Survey publications.

James, S & Lahti, T. (2004).The natural step for communities: how cities and Towns can change to sustainable practices. Philadelphia: New Society Publishers

Mokhatab, N. (2006). Handbook of natural gas transmission and processing Chemical, Petrochemical & Process.

Amsterdam: Gulf Professional Publishing National Research Council. (2003). Cumulative environmental effects of oil and Gas activities on Alaska’s North Slope. Washington, Conational Academies Press.

The University of Michigan. (1978). Oil and gas activities, Issues 13-15.Toronto: Information-Canada.

West Coast Offshore Exploration Environmental Assessment Panel. (1986). Offshore hydrocarbon exploration. Victoria: Province of British Columbia.