Natural Gas Is Making Bold Energy Moves

Given the high oil price, it is hardly unexpected that big oil companies have not boosted their investments in fossil-fuel production. While world authorities have highlighted the need to decarbonize the energy system, many businesses are hesitant to invest in assets that may be rendered obsolete by future climate policies.

Senator Bernie Sanders of Vermont and Representative Cori Bush of Missouri sponsored the Energy Security and Independence Act to expand the usage of renewable energy sources while reducing utility bills. The approval of the bill will generate hundreds of thousands of well-paying jobs. However, the new law also permits more oil and gas leases, which environmentalists oppose.

European nations are taking significant measures to reduce their reliance on Russian gas and other fossil resources. Recently, Poland prohibited imports of Russian gas and coal. Germany is also preparing the basis for the rationing of natural gas. While the conflict in Ukraine will undoubtedly stall the energy transition in Europe, other regions will continue to use fossil fuels.

China and India have also undertaken significant energy industry developments. Both nations have announced efforts to decarbonize and transition to renewable energy sources. While oil remains the basis of the energy sector, natural gas has the potential to play a significant role in the industry's transition. Its ability to replace coal is a considerable benefit for both nations. Therefore, all parties must collaborate on the transition to a low-carbon economy.

Although it is evident that natural gas has substantial advantages over coal and other fossil fuels, there are still environmental issues regarding its extraction. The current administration is repealing Obama-era regulations requiring companies to detect leaks and implement additional measures to limit methane emissions. Texas has not yet established rules to curb natural gas emissions, but five other states have done so. Further federal regulations are required to ensure that natural gas fulfills its potential as the fossil fuel with the lowest carbon footprint.

The electrification of buildings is crucial to the shift to sustainable energy, but governmental agencies have fallen behind on this front. Energy Commission and Public Utilities Commission in California is exploring new laws mandating that all structures in the state be electric. These rules may eventually require the electrification of buildings, and they have earmarked $400 million to facilitate this changeover.

The ongoing increase in natural gas output in the United States has directly affected coal usage. In December 2018, natural gas accounted for 35% of utility-scale power generation in the United States. This increased demand resulted in decommissioning of thirteen gigawatts of coal-fired power reactors. Natural gas exports, which are crucial for reducing global emissions, have increased due to the ongoing expansion in gas production.

The Inflation Reduction Act of 2022 acknowledges the need to invest in renewable energy and encourages businesses to do so. This program has allowed the world's largest hydrogen manufacturer, Air Products, to become a leader in clean energy transition projects. The corporation is committed to supporting energy transition efforts and applauds the historic opportunity to invest in energy innovations.

This act is essential for the future energy supply and substantially boosts the U.S. economy. In addition, it will generate new employment and investments in our communities, fostering the growth of small enterprises in the power industry. In the energy race, the Inflation Reduction Act will assist the United States in catching up to the rest of the globe. In terms of climate change, it will be a crucial piece of legislation over our lifetimes.