Natural Gas Power in Louisiana State

As an international student, I have found very interesting that Lousiana is among the top-five natural gas producing states. Louisiana’s mayor energy consumption comes from natural gas. I made some research in order to find out more about how it is produced and used in this state.  Furthermore, I mention the economic contribution of the natural gas for this State and the country as a whole.

Lousiana an Energy Resource Jackpot

A third of its land is covered by freshwater and saltwater. By far the most humid state I’ve been in. Surrounded by beautiful marshes, bayous, and estuaries. It has perfect natural resources for making renewable energy. Besides the production of crude oil and natural gas, Lousiana produces substantial biomass resources from agricultural byproducts, wood, and wood waste.

Power Gas Formation

Natural gas is a nonrenewable energy resource. It has a damaging impact on the environment although the global warming emission from its consumption is much lower than those from coal and oil. It is located deep beneath the earth’s surface formed from the decomposition of remains of plants and animals. This carbon and hydrogen-rich material are changed over the years by the pressure of soil layers and heat. Some of the organic material is transformed into oil (petroleum) and some into natural gas. Natural gas deposits can be found on land or deep under the ocean floor. Geologist locates the natural gas deposits with seismic surveys on land and in the ocean’s floor in order to get the information on the geology of rock formations.

The geologists make tests wells in order to analyze if there is enough natural gas to produce and make a profit if they find enough they start drilling. The wells can be drilled vertically or horizontally into natural gas-bearing formations. With the design of the reserve, natural gas flows easily through wells to the surface. In the top of the well, gas is gathered into pipelines and sent to natural gas processing plants.

Natural gas contains a variety of chemicals compounds, the largest component being methane. Along with methane, it contains NGL (Natural Gas Liquids) most of which must be removed before it is sold to consumers. Odorants are added to the end product so that leaks in natural gas pipelines can be detected. Natural gas may be reinjected into the oil-bearing formation if there is no natural gas demand, this process helps maintain the pressure in oil wells to improve production. It can also be vented or burned (flared).

U.S Biggest Gas User 

This state is one of the top five producing states of natural gas. The energy consumption in this state ranks among the highest in the nation.  It accounts for about 7% of U.S. marketed gas production and holds about 8% of the nation’s natural gas reserves. Industrial consumption is the main reason why. This sector accounts for 69.7 percent of the energy consumption, mostly because of the energy-intensive chemical, petroleum, and natural gas industries. Making Lousiana State the third state in industrial energy consumption after Texas and California. Despite this fact, Lousiana energy consumption per capita in the residential sector is near the national median. Only one-third of the state households rely on natural gas home heating, the consumption in residential sectors is small because of a tendency of mild winters. Although in 2017 Louisiana’s pipeline use of natural gas was the highest of any state in the nation.

The natural gas storage in Louisiana accounts for 8% of U.S total storage capacity. In 2017, the use of natural gas demand was higher during the winter and now it has also increased during the summer months with the use of air conditioning. With the nineteen natural gas storage facilities located in the state, it allows for quick delivery whenever it is needed and plentiful storage when there is low demand.

Exports and In-house Consumption

Most of the natural gas consumed in the United States is produced in the United States. Some natural gas is imported from Canada and Mexico in pipelines. A small amount of natural gas is also imported as liquefied natural gas.

This state specializes in the movement of natural gas from the U.S Gulf Coast region to markets all around the country. Texas provides Lousiana with 50 percent of its natural gas reserves via a network of interstate pipelines. Other natural gas comes from federal areas in the Gulf of Mexico distributed as a sublease to energy companies to produce gas. As mentioned, the majority of the natural gas produced is consumed in the U.S. Although about 20 percent is exported to other countries, of which Mexico, South Korea, and China received half of its total natural gas exports during 2017.

Gas Turned Into Profit

The production of oil and gas contributes to the U.S economy by giving a significant percentage of revenue in tariffs, taxes, and rates. What companies pay to federal, state and local governments depends on who owns the natural resources. Last year Louisiana got $91 million in fiscal year federal oil and gas revenue.  About 80 percent of these revenues went to the state and the rest was invested in restoration and state coastal protection. The energy sector employment amounts to around 7,174 workers that are employed in the electricity generation.

In conclusion, natural gas production in Louisiana contributes on a large scale to its economy, wedges, and employment.

 

 

By Ana Gonzalez