Monday, February 6, 2012

Student Post: GTL: The Unknown Energy Alternative?

Today, mentioning the acronym “GTL” to a majority of Americans will likely invoke a catch phrase popularized by the MTV reality show Jersey Shore. The show, which was 2011’s most popular series on basic cable,[1] has famously used the acronym to describe the cast’s desire to visit the gym, the tanning salon, and the laundromat in succession. While the expression “Gym, Tan, Laundry” or “GTL” may speak volumes of some of the current social trends reaching out to millions of young Americans, “GTL” in the context of energy production represents a potential future in natural gas’ use as a clean and efficient source of energy.

Today’s reading very briefly describes a few future possible uses for natural gas as an energy source. One of the more interesting, and perhaps promising techniques, is the use of a Gas To Liquid procedure. As its name suggests, GTL converts natural gas into a liquidized, ultra clean, synthetic diesel fuel. The process itself first involves the removal of water and other impurities from the gas, followed by the conversion of the gas to produce syngas (a reformed gas consisting of carbon monoxide and hydrogen). This mixture is then further processed into a hydrocarbon wax like substance. The process is then completed when the wax is converted into a liquid form such as a diesel fuel (though other options are available as well). Generally, the process requires about 10 MCF (or ten thousand cubic feet) of natural gas for a single barrel of output.[2] While this number may seem striking, the GTL process can be economically viable if gas prices stay relatively cheap as compared to that of oil.

The advantages of utilizing the GTL process can be found in considering its economical factors, its environmental impact, and the practicality or ease in its usage. The World Bank estimates that approximately 140 billion cubic meters (BCM) of natural gas is flared or discarded every year due to the economic impracticality of attempting to store and transport natural gas.[3] Growing and expanding GTL facilities in the United States and abroad would unquestionably help alleviate the inefficiency involved in the flaring/discarding of natural gas. The GTL process would make it worthwhile for a company to harvest natural gas instead of simply discarding it.[4] Furthermore, the ability to utilize known natural gas reserves or pockets that have gone untapped would be more feasible should GTL technologies be more abundant. These smaller pockets of gas, often described as “stranded” reserves, are economically not worth the resources needed to collect them. Indeed, because the harvesting of natural gas largely depends on its transportation through large pipelines from producers to consumers, areas of known gas reserves that do not have access to such pipelines are left unused. According to the International Association for Energy Economics, approximately 80% of the 5,000 trillion cubic feet (TCF) of proven natural gas reserves are stranded.[5] Should the natural gas in these stranded reserves be more readily convertible into either the waxy hydrocarbon or even liquid fuel states, then more traditional means of transporting the “gas” would become available; a directly pipeline would not be necessary.

There are also numerous environmental and practical reasons for pursuing GTL technologies and its application. The burning of GTL diesel fuel, for example, releases a sulfur bi-product of less than 1 ppm, compared to the sulfur discharge of 50 ppm when burning regular diesel fuel. Furthermore, the polycyclic aromatic hydrocarbon (or aromatics) in the GTL diesel are less than 1% per volume, whereas the aromatics in conventional diesel are around 35% per volume.[6] While conventional diesel fuels in diesel engines are generally regarded as more environmentally friendly when compared to their gasoline burning counterparts, it is clear that GTL synthetic diesel fuel takes several additional steps in reducing negative environmental impacts. Combine these features with the fact that synthetic GTL diesel can utilize the current oil, petroleum, and gasoline distribution and transportation system, and the practical aspect of its use becomes quite clear. There would be no need to construct large pipelines for transportation of increased quantities of natural gas, no development for a separate automobile engine or model (just a traditional diesel engine), and no drastic change to the current distribution system used for other types of fuels, including gasoline or petroleum.

With so many positive factors favoring the development of GTL technology, why is it that this energy alternative has been relatively ignored and unnoticed?  Simply put, the technology and manufacturing facilities required to employ the GTL system are enormously expensive, especially in the early stage of this technology’s existence. Not more than ten years ago, it was predicted that GTL fuels would become an ever emerging energy source in the global market. Private companies like Shell, Chevron, Sasol, BP, and Exxon were all planning on investing and opening GTL plants in various locations around the globe. However, rising costs to produce, manufacture, and develop GTL fuels have chased many of the once enthusiastic private sector companies away from this new form of natural gas conversion.[7] 

What I have discovered to be absent from any discussion on developing GTL technologies, is any sort of government funded research and development or initiative. With such an impressive list of benefits surrounding GTL, it would seem obvious to me that perhaps increased attention should be given to it. Given that the private sector was at one time very optimistic and confident in GTL and has since backed down due to economical concerns, perhaps it is time for government to begin pursuing and advocating for this alternative fuel source.


[1] http://www.tvguide.com/News/Jersey-Shore-Cable-1040830.aspx
[2] http://www.npc.org/Study_Topic_Papers/9-STG-Gas-to-Liquids-GTL.pdf
[3]http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTSDNET/0,,contentMDK:22416844~menuPK:64885113~pagePK:64885161~piPK:64884432~theSitePK:5929282,00.html
[4] http://www.npc.org/Study_Topic_Papers/9-STG-Gas-to-Liquids-GTL.pdf
[5] http://www.iaee.org/documents/Prague/p03rahmim.pdf
[6] http://www.scribd.com/doc/3825160/Gas-to-Liquids-GTL-Technology
[7] http://www.npc.org/Study_Topic_Papers/9-STG-Gas-to-Liquids-GTL.pdf

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