GTL - The Alternative Energy Diesel

Natural gas is used to produce, via the GTL (gas-to-liquid) process, a clean diesel-like fuel. The production process is very advanced overseas, particularly in South Africa. In addition to being clean, the diesel fuel produced is non-explosive.

The diesel fuel produced by the GTL process is so ultra clean, it can be blended with regular "unclean" diesel to produce a blended diesel that meets government standards. This is important because many nations are developing new regulations for diesel requiring the sulfur content of diesel fuel to be extremely low. The GTL diesel fuel's cleanliness gives it a built-in advantage. Additionally, the GTL diesel has a higher Cetane No. than conventional diesel. A higher Cetane No. means the GTL diesel is more powerful and more efficient than conventional diesel.

Europe is where the GTL diesel will have its greatest direct impact. Europe has gone bananas over diesel and more diesel than gasoline is now used for automobiles and trucks there.

However, it will have an indirect effect on the U.S. because we import large amounts of gasoline from Europe. The GTL process will, in effect, decrease the gasoline demand in Europe and more gasoline will be available for export to the U.S. thus helping us with our fuel shortage.

Here, again, many energy experts would not define the GTL diesel as an alternative fuel source since the diesel fuel is produced from conventional natural gas. However, the product fits my definition of alternative energy source just fine since the product availability, in effect, allocates existing fuel resources more efficiently. Also, natural gas is in more plentiful supply than crude oil, so converting the natural gas to a useable liquid fuel makes good sense. It conserves the amount of available crude oil which is in very short supply.

LNG - Frozen Alternative Energy Source!

LNG (liquefied natural gas) , technically, might not, by most experts standards, be considered an alternative energy source since it is really frozen natural gas. However, by my definition of an alternative energy source being any energy source that replaces or reduces the demand for crude oil, natural gas, or coal, LNG is an alternative energy source. Much of the natural gas used in producing LNG is obtained from natural gas deposits for which there is no local market ("stranded natural gas") and transported to hot markets, e.g., U.S. and Japan.

Significant global trade in LNG has developed and as the U.S. eventually runs out of domestic oil and natural gas, imported LNG will play an increasing role in supplying the U.S. with an "alternative energy supply." Although only a few LNG terminals have been constructed in the U.S. so far, a number of others are planned.

Unfortunately, as with oil, the largest natural gas deposits are in the Middle East, notably Iran and Qatar. Qatar, a small country on the Persian Gulf, is rumored to have truly massive deposits of natural gas just offshore. Their small population has little need for the gas so look for Qatar to be a major player in the LNG field. Fortunately, Qatar and the U.S. are very friendly. Not so with Iran which has very large natural gas fields. Iran is also looking to become a major exporter of LNG. Saudi Arabia and the Soviet Union are two other countries with large natural gas deposits. They are also moving into the LNG export business.

LNG is transported via special vessels designed to handle the frozen natural gas. Most LNG will be offloaded into offshore LNG terminals, heated back to the gaseous form, and send by existing gas piplines throughout the U.S.

LNG is an alternative energy source whose time has come!

(Update: The recent discovery that massive deposits of natural gas is present in U.S. shale formations and can be economically extracted, may alter our position in the LNG market. Conceivable, the U.S. may now have large enough reserves of natural gas that we could become a major exporter of natural gas in the form of LNG. What a change that would be!)