A Secret From the Bottom of the Sea
In ancient times, a poor family existed within a kingdom in Bali. They were Mr. Tiwas and Mrs. Sugih. Because of their poorness, they didn’t even have enough money to eat, thereby suffering hunger every day.
One day, when pan Tiwas (pan = Balinese term for man/father/Mr.) could not take it any longer, he journeyed to a quiet area, where he saw a grassed cow tied to a tree by its owner. Pan Tiwas silently untied the cow and took it away to the south. Upon arriving at a safe place, he tied the cow to a coconut tree.
Pan Kobar, the cow’s owner, surprised to see that his cow was gone, searched for the cow in every single spot, but he could not find it. On purpose, Pan Tiwas walked back again around to where the cow was tied. “Hoi, pan Tiwas… Did you see my cow?” said pan Kobar to pan Tiwas.
“A Cow? where did you tie it up?” said pan Tiwas pretending . His face looked so convening, just like a surprised and concerned person. Pan Kobar pointed to a nearby tree, the spot where he tied his cow.
“Come along to my house. May be I can help you to find your cow,” said pan Tiwas who quickly returned to his own house.
When pan Tiwas was relaxing in front of his house, pan Kobar showed up with 10 kg of rice and 10 coins of money. “Pan Tiwas…please show me where is my cow?” said pan Kobar hopefully.
To hear that, with his tricky smile, pan Tiwas asks pan Kobar to go into the house. After siting down face-to-face, pan Tiwas took a keris (double-bladed dagger) outside. “I will ask for a clue to this divine keris,” pan Tiwas said murmuring a magic spell. After few seconds, suddenly pan Tiwas roaring. His eyes is goggling and staring at pan Kobar.
“Your cow is in the south. I will it now!” he said whilst pointed directly. Then, pan Kobar requested to leave, and rushed to the south. Actually, what is said by pan Tiwas is true. Pan Kobar found his cow there and still tied to the coconut tree.
Since that time, pan Tiwas became famous as a shaman. The report spread out quickly in the kingdom. The cruel king invited pan Tiwas to his palace. For such of honor, pan Tiwas felt glad but afraid as well. He was afraid if his trick was revealed that the king would cut of his head!
At the palace, the king asks pan Tiwas to guess the watermelon seeds on the table. Within his mind, that huge watermelon must be containing a lot of seeds he thought, but he did not know precisely the number. “I will wait for your answer tomorrow!” said the king with a cynical smile. “ If you have failed, your head will be cut off…”
Upon arriving at his house, pan Tiwas told to his wife what exactly was going on. Then, they both broke into tears. They realized that soon he would leave this world in peace. Finally, in the darkness of night, pan Tiwas with his wife sneaked out to cross the ocean with a small boat. He rows the boat slowly into the ocean passing a big boat belongs to a rich merchant from across country.
While crossing the merchant’s ship, pan Tiwas head a man chatting. “I’m sure tomorrow the shaman will die,” said one of the men. “Why are your so sure?” said the other man. “He will never ever to guess the watermelon seeds precisely.”
“Actually, how much seeds are there?”
“The watermelon contains of no seeds…ha..ha..ha…”
“Why are you definitely sure about that?”
“Because I gave the watermelon to the king.”
To hear that, pan Tiwas decided to cancel the escape. The next morning, the king was so surprised with pan Tiwas’ accurate answer in guessing the watermelon seeds. According to the deal, pan Tiwas awarded a good reward by the king.
On the night of that day, pan Tiwas with his wife escaped across the country. He thought that his luck was only an incidental happening that would never come twice. If the king ever asked him again for a bet , possibly his head will surely be taken off. Rather than that happen, he’d rather escape from his homeland to live in harmony and peace across the country.(Retold by Gung Man)
Balineselife
“Segara Gunung”
The life of the Balinese (Hindu) people cannot be separated from two elements namely, segara and gunung. Segara means beach/sea and gunung meaning mountain, which is similar to Akasa Pertiwi (sky and earth)/father-mother concept. Segara-Gunung is important to Balinese people (Hindu), because besides a resource of needs for human existence, segara-gunung is also an important site to execute ritual ceremony. There are three kinds of ceremonies performed on the beach/sea areas, they are melasti, nangluk merana, and nyagara gunung
he Melasti ceremony is usually performed around Nyepi Holy Day, Hindu’s newyear. Acording to Ida Peranda Gunung Blahbatuh (highest caste priest), the purpose of malasti ceremony is to plead to Hyang Baruna (the sea ruler) to bestow tirta kamandalu (holy water located in the midst of the ocean) convinced to be able to purify human mind and the environment. Around Nyepi, Hindu members will also execute this ceremony around great ceremonial activity. Here, it aimed to clean the space, and to purify the human’s mind where the ceremony takes place.
The Nyagara gunung ceremony is very much related with ngaben. Ngaben is belonging to pitra yadnya, which is one of the five yadnya performed by the Balinese. Those five are called Panca Yadnya (five holy sacrifice), consisting of; (1), Dewa yadnya, which mean holy sacrifice to the deities. (2), Resi yadnya, holy sacrifice served to a holy person, such as rsi and pendeta (priest) (3), Pitra yadnya, a holy sacrifice offered to ancestors or human spirits (4), Manusia yadnya, holy sacrifices to human beings, and (5), Butha yadnya is the holy sacrifice to the universe, and its invisible elements, in order to create a harmonious relation between humans and those five elements above.
Nangluk merana is a ceremony executed right on tilem sasih kanem (the dark moon on the sixth month) of the Balinese calendar. The word “nangluk” means to prevent, and “merana” means illness or disease. So, Nangluk Merana means a ceremony aimed at preventing many kinds of diseases. The Balinese believe that sasih kanem is an unfortunate sasih (month), therefore, the Nangluk Merana ceremony is needed to escape from disease abuse. The purpose of this ceremony is a plea to the sea ruler who resides in Pura Dalem Peed that designates with Ratu Gede Macaling, in order to bestow safeness for the entire Balinese people. Especially for the Gianyar society, this Nangluk Merana ceremony centrally sited at Lebih Beach, and regularly adhered by thousands of religious members, starts from morning until night.
Ngaben is a more important ceremony than other ceremonies. It is important, because Balinese Hindus believe that within ngaben ceremony, they can repay a debt to a deceased person. Ngaben ceremony is a good-bye ceremony between living people and the dead. Its convinced that the dead person will leave the real world heading towards an unreal realm. The word “ngaben” comes from the word abu (ash) asserted with prefix “ng”, becomes ngabu, which means to make something become ash.
After the corpse is burnt and becomes ashes, then followes a nganyut ceremony, which is executed at a river with the condition that the water channel must directly link with the ocean. The purpose of nganyut is returning the human’s element that naturally comes from water.
After 12 days from the ngaben ceremony, another ceremony is conducted. nyagara gunung. Nyagara gunung means headed to the sea and mountain. The purpose is to return the element sources that come from the sea and the mountain. The beaches are regularly used for nyagara gunung ceremonies by the Balinese Hindu people, especially in southern Bali, Kusamba Beach and the mountain Goa Lawah, both are located in the Klungkung Regency.
Adv
Rabu, 12 Maret 2008
A Secret From the Bottom of the Sea
A Secret From the Bottom of the Sea
In ancient times, a poor family existed within a kingdom in Bali. They were Mr. Tiwas and Mrs. Sugih. Because of their poorness, they didn’t even have enough money to eat, thereby suffering hunger every day.
One day, when pan Tiwas (pan = Balinese term for man/father/Mr.) could not take it any longer, he journeyed to a quiet area, where he saw a grassed cow tied to a tree by its owner. Pan Tiwas silently untied the cow and took it away to the south. Upon arriving at a safe place, he tied the cow to a coconut tree.
Pan Kobar, the cow’s owner, surprised to see that his cow was gone, searched for the cow in every single spot, but he could not find it. On purpose, Pan Tiwas walked back again around to where the cow was tied. “Hoi, pan Tiwas… Did you see my cow?” said pan Kobar to pan Tiwas.
“A Cow? where did you tie it up?” said pan Tiwas pretending . His face looked so convening, just like a surprised and concerned person. Pan Kobar pointed to a nearby tree, the spot where he tied his cow.
“Come along to my house. May be I can help you to find your cow,” said pan Tiwas who quickly returned to his own house.
When pan Tiwas was relaxing in front of his house, pan Kobar showed up with 10 kg of rice and 10 coins of money. “Pan Tiwas…please show me where is my cow?” said pan Kobar hopefully.
To hear that, with his tricky smile, pan Tiwas asks pan Kobar to go into the house. After siting down face-to-face, pan Tiwas took a keris (double-bladed dagger) outside. “I will ask for a clue to this divine keris,” pan Tiwas said murmuring a magic spell. After few seconds, suddenly pan Tiwas roaring. His eyes is goggling and staring at pan Kobar.
“Your cow is in the south. I will it now!” he said whilst pointed directly. Then, pan Kobar requested to leave, and rushed to the south. Actually, what is said by pan Tiwas is true. Pan Kobar found his cow there and still tied to the coconut tree.
Since that time, pan Tiwas became famous as a shaman. The report spread out quickly in the kingdom. The cruel king invited pan Tiwas to his palace. For such of honor, pan Tiwas felt glad but afraid as well. He was afraid if his trick was revealed that the king would cut of his head!
At the palace, the king asks pan Tiwas to guess the watermelon seeds on the table. Within his mind, that huge watermelon must be containing a lot of seeds he thought, but he did not know precisely the number. “I will wait for your answer tomorrow!” said the king with a cynical smile. “ If you have failed, your head will be cut off…”
Upon arriving at his house, pan Tiwas told to his wife what exactly was going on. Then, they both broke into tears. They realized that soon he would leave this world in peace. Finally, in the darkness of night, pan Tiwas with his wife sneaked out to cross the ocean with a small boat. He rows the boat slowly into the ocean passing a big boat belongs to a rich merchant from across country.
While crossing the merchant’s ship, pan Tiwas head a man chatting. “I’m sure tomorrow the shaman will die,” said one of the men. “Why are your so sure?” said the other man. “He will never ever to guess the watermelon seeds precisely.”
“Actually, how much seeds are there?”
“The watermelon contains of no seeds…ha..ha..ha…”
“Why are you definitely sure about that?”
“Because I gave the watermelon to the king.”
To hear that, pan Tiwas decided to cancel the escape. The next morning, the king was so surprised with pan Tiwas’ accurate answer in guessing the watermelon seeds. According to the deal, pan Tiwas awarded a good reward by the king.
On the night of that day, pan Tiwas with his wife escaped across the country. He thought that his luck was only an incidental happening that would never come twice. If the king ever asked him again for a bet , possibly his head will surely be taken off. Rather than that happen, he’d rather escape from his homeland to live in harmony and peace across the country.(Retold by Gung Man)
Balineselife
“Segara Gunung”
The life of the Balinese (Hindu) people cannot be separated from two elements namely, segara and gunung. Segara means beach/sea and gunung meaning mountain, which is similar to Akasa Pertiwi (sky and earth)/father-mother concept. Segara-Gunung is important to Balinese people (Hindu), because besides a resource of needs for human existence, segara-gunung is also an important site to execute ritual ceremony. There are three kinds of ceremonies performed on the beach/sea areas, they are melasti, nangluk merana, and nyagara gunung
he Melasti ceremony is usually performed around Nyepi Holy Day, Hindu’s newyear. Acording to Ida Peranda Gunung Blahbatuh (highest caste priest), the purpose of malasti ceremony is to plead to Hyang Baruna (the sea ruler) to bestow tirta kamandalu (holy water located in the midst of the ocean) convinced to be able to purify human mind and the environment. Around Nyepi, Hindu members will also execute this ceremony around great ceremonial activity. Here, it aimed to clean the space, and to purify the human’s mind where the ceremony takes place.
The Nyagara gunung ceremony is very much related with ngaben. Ngaben is belonging to pitra yadnya, which is one of the five yadnya performed by the Balinese. Those five are called Panca Yadnya (five holy sacrifice), consisting of; (1), Dewa yadnya, which mean holy sacrifice to the deities. (2), Resi yadnya, holy sacrifice served to a holy person, such as rsi and pendeta (priest) (3), Pitra yadnya, a holy sacrifice offered to ancestors or human spirits (4), Manusia yadnya, holy sacrifices to human beings, and (5), Butha yadnya is the holy sacrifice to the universe, and its invisible elements, in order to create a harmonious relation between humans and those five elements above.
Nangluk merana is a ceremony executed right on tilem sasih kanem (the dark moon on the sixth month) of the Balinese calendar. The word “nangluk” means to prevent, and “merana” means illness or disease. So, Nangluk Merana means a ceremony aimed at preventing many kinds of diseases. The Balinese believe that sasih kanem is an unfortunate sasih (month), therefore, the Nangluk Merana ceremony is needed to escape from disease abuse. The purpose of this ceremony is a plea to the sea ruler who resides in Pura Dalem Peed that designates with Ratu Gede Macaling, in order to bestow safeness for the entire Balinese people. Especially for the Gianyar society, this Nangluk Merana ceremony centrally sited at Lebih Beach, and regularly adhered by thousands of religious members, starts from morning until night.
Ngaben is a more important ceremony than other ceremonies. It is important, because Balinese Hindus believe that within ngaben ceremony, they can repay a debt to a deceased person. Ngaben ceremony is a good-bye ceremony between living people and the dead. Its convinced that the dead person will leave the real world heading towards an unreal realm. The word “ngaben” comes from the word abu (ash) asserted with prefix “ng”, becomes ngabu, which means to make something become ash.
After the corpse is burnt and becomes ashes, then followes a nganyut ceremony, which is executed at a river with the condition that the water channel must directly link with the ocean. The purpose of nganyut is returning the human’s element that naturally comes from water.
After 12 days from the ngaben ceremony, another ceremony is conducted. nyagara gunung. Nyagara gunung means headed to the sea and mountain. The purpose is to return the element sources that come from the sea and the mountain. The beaches are regularly used for nyagara gunung ceremonies by the Balinese Hindu people, especially in southern Bali, Kusamba Beach and the mountain Goa Lawah, both are located in the Klungkung Regency.
In ancient times, a poor family existed within a kingdom in Bali. They were Mr. Tiwas and Mrs. Sugih. Because of their poorness, they didn’t even have enough money to eat, thereby suffering hunger every day.
One day, when pan Tiwas (pan = Balinese term for man/father/Mr.) could not take it any longer, he journeyed to a quiet area, where he saw a grassed cow tied to a tree by its owner. Pan Tiwas silently untied the cow and took it away to the south. Upon arriving at a safe place, he tied the cow to a coconut tree.
Pan Kobar, the cow’s owner, surprised to see that his cow was gone, searched for the cow in every single spot, but he could not find it. On purpose, Pan Tiwas walked back again around to where the cow was tied. “Hoi, pan Tiwas… Did you see my cow?” said pan Kobar to pan Tiwas.
“A Cow? where did you tie it up?” said pan Tiwas pretending . His face looked so convening, just like a surprised and concerned person. Pan Kobar pointed to a nearby tree, the spot where he tied his cow.
“Come along to my house. May be I can help you to find your cow,” said pan Tiwas who quickly returned to his own house.
When pan Tiwas was relaxing in front of his house, pan Kobar showed up with 10 kg of rice and 10 coins of money. “Pan Tiwas…please show me where is my cow?” said pan Kobar hopefully.
To hear that, with his tricky smile, pan Tiwas asks pan Kobar to go into the house. After siting down face-to-face, pan Tiwas took a keris (double-bladed dagger) outside. “I will ask for a clue to this divine keris,” pan Tiwas said murmuring a magic spell. After few seconds, suddenly pan Tiwas roaring. His eyes is goggling and staring at pan Kobar.
“Your cow is in the south. I will it now!” he said whilst pointed directly. Then, pan Kobar requested to leave, and rushed to the south. Actually, what is said by pan Tiwas is true. Pan Kobar found his cow there and still tied to the coconut tree.
Since that time, pan Tiwas became famous as a shaman. The report spread out quickly in the kingdom. The cruel king invited pan Tiwas to his palace. For such of honor, pan Tiwas felt glad but afraid as well. He was afraid if his trick was revealed that the king would cut of his head!
At the palace, the king asks pan Tiwas to guess the watermelon seeds on the table. Within his mind, that huge watermelon must be containing a lot of seeds he thought, but he did not know precisely the number. “I will wait for your answer tomorrow!” said the king with a cynical smile. “ If you have failed, your head will be cut off…”
Upon arriving at his house, pan Tiwas told to his wife what exactly was going on. Then, they both broke into tears. They realized that soon he would leave this world in peace. Finally, in the darkness of night, pan Tiwas with his wife sneaked out to cross the ocean with a small boat. He rows the boat slowly into the ocean passing a big boat belongs to a rich merchant from across country.
While crossing the merchant’s ship, pan Tiwas head a man chatting. “I’m sure tomorrow the shaman will die,” said one of the men. “Why are your so sure?” said the other man. “He will never ever to guess the watermelon seeds precisely.”
“Actually, how much seeds are there?”
“The watermelon contains of no seeds…ha..ha..ha…”
“Why are you definitely sure about that?”
“Because I gave the watermelon to the king.”
To hear that, pan Tiwas decided to cancel the escape. The next morning, the king was so surprised with pan Tiwas’ accurate answer in guessing the watermelon seeds. According to the deal, pan Tiwas awarded a good reward by the king.
On the night of that day, pan Tiwas with his wife escaped across the country. He thought that his luck was only an incidental happening that would never come twice. If the king ever asked him again for a bet , possibly his head will surely be taken off. Rather than that happen, he’d rather escape from his homeland to live in harmony and peace across the country.(Retold by Gung Man)
Balineselife
“Segara Gunung”
The life of the Balinese (Hindu) people cannot be separated from two elements namely, segara and gunung. Segara means beach/sea and gunung meaning mountain, which is similar to Akasa Pertiwi (sky and earth)/father-mother concept. Segara-Gunung is important to Balinese people (Hindu), because besides a resource of needs for human existence, segara-gunung is also an important site to execute ritual ceremony. There are three kinds of ceremonies performed on the beach/sea areas, they are melasti, nangluk merana, and nyagara gunung
he Melasti ceremony is usually performed around Nyepi Holy Day, Hindu’s newyear. Acording to Ida Peranda Gunung Blahbatuh (highest caste priest), the purpose of malasti ceremony is to plead to Hyang Baruna (the sea ruler) to bestow tirta kamandalu (holy water located in the midst of the ocean) convinced to be able to purify human mind and the environment. Around Nyepi, Hindu members will also execute this ceremony around great ceremonial activity. Here, it aimed to clean the space, and to purify the human’s mind where the ceremony takes place.
The Nyagara gunung ceremony is very much related with ngaben. Ngaben is belonging to pitra yadnya, which is one of the five yadnya performed by the Balinese. Those five are called Panca Yadnya (five holy sacrifice), consisting of; (1), Dewa yadnya, which mean holy sacrifice to the deities. (2), Resi yadnya, holy sacrifice served to a holy person, such as rsi and pendeta (priest) (3), Pitra yadnya, a holy sacrifice offered to ancestors or human spirits (4), Manusia yadnya, holy sacrifices to human beings, and (5), Butha yadnya is the holy sacrifice to the universe, and its invisible elements, in order to create a harmonious relation between humans and those five elements above.
Nangluk merana is a ceremony executed right on tilem sasih kanem (the dark moon on the sixth month) of the Balinese calendar. The word “nangluk” means to prevent, and “merana” means illness or disease. So, Nangluk Merana means a ceremony aimed at preventing many kinds of diseases. The Balinese believe that sasih kanem is an unfortunate sasih (month), therefore, the Nangluk Merana ceremony is needed to escape from disease abuse. The purpose of this ceremony is a plea to the sea ruler who resides in Pura Dalem Peed that designates with Ratu Gede Macaling, in order to bestow safeness for the entire Balinese people. Especially for the Gianyar society, this Nangluk Merana ceremony centrally sited at Lebih Beach, and regularly adhered by thousands of religious members, starts from morning until night.
Ngaben is a more important ceremony than other ceremonies. It is important, because Balinese Hindus believe that within ngaben ceremony, they can repay a debt to a deceased person. Ngaben ceremony is a good-bye ceremony between living people and the dead. Its convinced that the dead person will leave the real world heading towards an unreal realm. The word “ngaben” comes from the word abu (ash) asserted with prefix “ng”, becomes ngabu, which means to make something become ash.
After the corpse is burnt and becomes ashes, then followes a nganyut ceremony, which is executed at a river with the condition that the water channel must directly link with the ocean. The purpose of nganyut is returning the human’s element that naturally comes from water.
After 12 days from the ngaben ceremony, another ceremony is conducted. nyagara gunung. Nyagara gunung means headed to the sea and mountain. The purpose is to return the element sources that come from the sea and the mountain. The beaches are regularly used for nyagara gunung ceremonies by the Balinese Hindu people, especially in southern Bali, Kusamba Beach and the mountain Goa Lawah, both are located in the Klungkung Regency.
Source: NGSA
The natural gas industry is an extremely important segment of the U.S. economy. In addition to providing one of the cleanest burning fuels available to all segments of the economy, the industry itself provides much valuable commerce to the U.S. economy. Below is a brief description of the structure of the natural gas industry and market, as well as links to information on the make-up of the various segments of the natural gas industry, and recent statistics regarding the supply of natural gas. To learn about the processes associated with the natural gas supply chain, click here.
To jump ahead to specific topics in this section, click on the links below:
* Overview of Industry Structure - discusses how different market participants interact to bring supplies of natural gas to the market.
* Industry Makeup - discusses the composition of the industry.
* Natural Gas Market Overview - discusses the natural gas market, and the forces that affect the interaction of supply and demand for natural gas
* . Market Activity -provides a snapshot of recent wholesale market activity as reported by various indices and platforms.
Overview of Industry Structure
The structure of the natural gas industry has changed dramatically since the mid-1980's. In the past, the structure of the natural gas industry was simple, with limited flexibility and few options for natural gas delivery. Exploration and production companies explored and drilled for natural gas, selling their product at the wellhead to large transportation pipelines. These pipelines transported the natural gas, selling it to local distribution utilities, who in turn distributed and sold that gas to its customers. The prices for which producers could sell natural gas to transportation pipelines was federally regulated, as was the price at which pipelines could sell to local distribution companies. State regulation monitored the price at which local distribution companies could sell natural gas to their customers.
Getting Natural Gas to Market - Prior to Deregulation and Pipeline Unbundling
Source: NGSA
Thus, the structure of the natural gas industry prior to deregulation and pipeline unbundling was very straightforward. However, with regulation of wellhead prices, as well as assured monopolies for large transportation pipelines and distribution companies, there was little competition in the marketplace, and incentives to improve service and innovate were few. Regulation of the industry also led to natural gas shortages in the 1970s, and surpluses in the 1980s. To review the history of natural gas regulation, click here.
The natural gas industry today has changed dramatically, and is much more open to competition and choice. Wellhead prices are no longer regulated; meaning the price of natural gas is dependent on supply and demand interactions. Interstate pipelines no longer take ownership of the natural gas commodity; instead they offer only the transportation component, which is still under federal regulation. LDCs continue to offer bundled products to their customers, although retail unbundling taking place in many states allows the use of their distribution network for the transportation component alone. End users may purchase natural gas directly from producers or LDCs.
One of the primary differences in the current structure of the market is the existence of natural gas marketers. Marketers serve to facilitate the movement of natural gas from the producer to the end user. Essentially, marketers can serve as a middle-man between any two parties, and can offer either bundled or unbundled service to its customers. Thus, in the structure mentioned above, marketers may be present between any two parties to facilitate the sale or purchase of natural gas, and can also contract for transportation and storage. Marketers may own the natural gas being transferred, or may simply facilitate its transportation and storage. Essentially, a myriad of different ownership pathways exist for natural gas to proceed from producer to end user.
Simplified Structure of Industry after Pipeline Unbundling
Source: NGSA
The diagram shows a simplified representation of the structure of the natural gas industry after pipeline unbundling and wellhead price deregulation. It is important to note that the actual ownership pathway of the gas may be significantly more complicated, as the marketer or the LDC are not the final users. Either of these two entities may sell directly to the end user, or to other marketers or LDCs.
The regulatory environment of the day has a dramatic effect on shaping the structure of the industry. To learn more about the current regulatory environment for the natural gas industry, click here.
The actions of the federal government and its related agencies and departments can also have a significant impact on the structure and functioning of the natural gas industry. To learn more about how government actions can affect the natural gas industry, click here.
Source: NGSA
Industry Makeup
Now that the basic structure of the natural gas industry has been discussed, it is possible to examine the business characteristics and relevant statistics of each industry segment.
An excellent source for statistics and information on the natural gas industry and its various sectors is the Energy Information Administration (EIA). The EIA was created in 1977 as the statistical arm of the Department of Energy, charged with developing energy data and analyses that help to enhance the understanding of the energy industry. Click here to view the EIA's homepage. For a good overview of relevant updated statistics related to the natural gas industry, view the EIA's summary statistics on natural gas here.
Below are some statistics (based on EIA data for the year 2007) on the makeup of the natural gas industry. Follow the links to view the most up to date information on each sector:
* Producers - There are over 6,300 producers of natural gas in the United States. These companies range from large integrated producers with worldwide operations and interests in all segments of the oil and gas industry, to small one or two person operations that may only have partial interest in a single well. The largest integrated production companies are termed 'Majors', of which there are 21 active in the United States. For more information on the production of natural gas in the United States, click here. Information on the production of natural gas is also available on EIA's website here.
* Processing - There are over 530 natural gas processing plants in the United States, which were responsible for processing almost 15 trillion cubic feet of natural gas and extracting over 630 million barrels of natural gas liquids in 2006. For more information on natural gas processing, visit the Gas Processors Association here. For updated statistics on the processing of natural gas in the United States, click here.
* Pipelines - There are about 160 pipeline companies in the United States, operating over 300,000 miles of pipe. Of this, 180,000 miles consist of interstate pipelines. This pipeline capacity is capable of transporting over 148 Billion cubic feet (Bcf) of gas per day from producing regions to consuming regions. For more information on the natural gas pipeline infrastructure in the United States, click here. To see a list of major pipeline companies, including links to their websites, visit the Federal Energy Regulatory Commission's website here.
* Storage - There are about 123 natural gas storage operators in the United States, which control approximately 400 underground storage facilities. These facilities have a storage capacity of 4,059 Bcf of natural gas, and an average daily deliverability of 85 Bcf per day. The EIA maintains a weekly storage survey, monitoring the injection and withdrawal of stored natural gas. This survey gives a good indication of the status of the natural gas market, measuring the natural gas that is extracted or stored at any one time in response to the demand for natural gas. To learn more about this survey, visit the EIA here. To view more statistics and information related to natural gas storage in the United States, click here.
* Marketing - The status of the natural gas marketing segment of the industry is constantly changing, as companies enter and exit from the industry quite frequently. As of 2000, there were over 260 companies involved in the marketing of natural gas. In this same year, about 80 percent of all the natural gas supplied and consumed in North America passed through the hands of natural gas marketers. The volume of non-physical natural gas that passes through the hands of marketers is very large, and can be much greater than the actual physical volume consumed. This is an indication of vibrant, transparent commodity markets for natural gas. For instance, in 1998, it is estimated that for every thousand cubic feet of natural gas consumed, about 2.7 thousand cubic feet passed through natural gas marketers. For more information on natural gas and energy marketers, visit the National Energy Marketers Association here.
* Local Distribution Companies - There are about 1,200 natural gas distribution companies in the U.S., with ownership of over 1.2 million miles of distribution pipe. While many of these companies maintain monopoly status over their distribution region, many states are currently in the process of offering consumer choice options with respect to their natural gas distribution. To learn about the status of distribution restructuring across the United States visit the EIA here. To learn more about natural gas distribution companies and their regulatory structure, visit the National Association of Regulatory Utility Commissioners here. The American Gas Association is also an excellent source for information on LDCs.
Natural Gas Market Overview
The nature of the natural gas market is similar to other competitive commodity markets: prices reflect the ability of supply to meet demand at any one time. The economics of producing natural gas are relatively straightforward. Like any other commodity, the price of natural gas is largely a function of demand and the supply of the product.
Natural Gas Volatility and Price Levels at Henry Hub
Source: Energy Information Administration, Office of Oil and Gas;
based on Natural Gas Monthly publications
When demand for gas is rising, and prices rise accordingly, producers will respond by increasing their exploration and production capabilities. As a consequence, production will over time tend to increase to match the stronger demand. However, unlike many products, where production can be increased and sustained in a matter of hours or days, increases in natural gas production involve much longer lead times. It takes time to acquire leases, secure required government permits, do exploratory seismic work, drill wells and connect wells to pipelines; this can take as little as 6 months, and in some cases up to ten years. There is also uncertainty about the geologic productivity of existing wells and planned new wells. Existing wells will naturally decline at some point of their productive life and the production profile over time is not known with certainty. Thus, it takes time to adjust supplies in the face of increasing demand and rising prices. To learn more about factors that affect the supply of natural gas, click here.
The supply response to prices was demonstrated emphatically following the winter of 2000-2001 as producers substantially increased production investments and activities in response to higher prices. Likewise higher prices (and the U.S. recession) also reduced demand for natural gas. The supply and demand responses led to a new equilibrium in 2002 between supply and demand at market clearing prices far below the 2000-2001 peak.
Source: NGSA
In an environment of falling gas prices, the converse will be true. Producers will respond to lower natural gas prices over time by reducing their expenditures for new exploration and production. Production decline in existing wells will decrease productive capacity. At the same time, the lower prices will increase the demand for natural gas. This, in turn, will ultimately result in upward pressure on gas prices. This relationship between changes in the price of natural gas and variations in the supply of and demand for natural gas is sometimes referred to as the "natural gas market cycle."
In the short term, and in relation to existing producing wells, the supply of natural gas is relatively inelastic in response to changes in the price of natural gas. Contrary to some views, producers do not routinely shut in wells when natural gas prices are low. There are several economic drivers that provide an incentive for producers to continue producing even in the face of lower prices.
* First, if production is halted from a natural gas well it may not be possible to restore the well's production due to reservoir and wellbore characteristics.
* Second, the net present value of recapturing production in the future may be negative relative to producing the gas today -- i.e., it may be better to produce gas today than to wait until the future to produce the gas. If a producer chooses not to operate a well, the lost production cannot be recovered the next month but is instead is deferred potentially years in the future. There are no guarantees that the prices for gas in the future are going to be higher than prices today.
* Third, some gas is produced in association with oil, and in order to stop the flow of natural gas, the oil production must be stopped as well, which may not be economic.
* Finally, a producer may be financially or contractually bound to produce specific volumes of natural gas.
Producers and consumers react rationally to changes in prices. Fluctuations in gas prices and production levels are a normal response of the competitive and liquid North America gas market. While the price of the natural gas commodity fluctuates, it is this inherent volatility that provides the signals (and incentives) to both suppliers and consumers to ensure a constant move towards supply and demand equality.
Because the natural gas market is so heavily dependent on the interaction of supply and demand, it is important to have knowledge of the factors that affect these two components. To learn more about the supply and demand of natural gas in the United States, click on the links below:
* Natural Gas Demand
* Natural Gas Supply
To learn more about natural gas as a commodity, click here.
To learn more about the pricing of natural gas in competitive markets, visit the International Energy Agency here.
The natural gas industry is an extremely important segment of the U.S. economy. In addition to providing one of the cleanest burning fuels available to all segments of the economy, the industry itself provides much valuable commerce to the U.S. economy. Below is a brief description of the structure of the natural gas industry and market, as well as links to information on the make-up of the various segments of the natural gas industry, and recent statistics regarding the supply of natural gas. To learn about the processes associated with the natural gas supply chain, click here.
To jump ahead to specific topics in this section, click on the links below:
* Overview of Industry Structure - discusses how different market participants interact to bring supplies of natural gas to the market.
* Industry Makeup - discusses the composition of the industry.
* Natural Gas Market Overview - discusses the natural gas market, and the forces that affect the interaction of supply and demand for natural gas
* . Market Activity -provides a snapshot of recent wholesale market activity as reported by various indices and platforms.
Overview of Industry Structure
The structure of the natural gas industry has changed dramatically since the mid-1980's. In the past, the structure of the natural gas industry was simple, with limited flexibility and few options for natural gas delivery. Exploration and production companies explored and drilled for natural gas, selling their product at the wellhead to large transportation pipelines. These pipelines transported the natural gas, selling it to local distribution utilities, who in turn distributed and sold that gas to its customers. The prices for which producers could sell natural gas to transportation pipelines was federally regulated, as was the price at which pipelines could sell to local distribution companies. State regulation monitored the price at which local distribution companies could sell natural gas to their customers.
Getting Natural Gas to Market - Prior to Deregulation and Pipeline Unbundling
Source: NGSA
Thus, the structure of the natural gas industry prior to deregulation and pipeline unbundling was very straightforward. However, with regulation of wellhead prices, as well as assured monopolies for large transportation pipelines and distribution companies, there was little competition in the marketplace, and incentives to improve service and innovate were few. Regulation of the industry also led to natural gas shortages in the 1970s, and surpluses in the 1980s. To review the history of natural gas regulation, click here.
The natural gas industry today has changed dramatically, and is much more open to competition and choice. Wellhead prices are no longer regulated; meaning the price of natural gas is dependent on supply and demand interactions. Interstate pipelines no longer take ownership of the natural gas commodity; instead they offer only the transportation component, which is still under federal regulation. LDCs continue to offer bundled products to their customers, although retail unbundling taking place in many states allows the use of their distribution network for the transportation component alone. End users may purchase natural gas directly from producers or LDCs.
One of the primary differences in the current structure of the market is the existence of natural gas marketers. Marketers serve to facilitate the movement of natural gas from the producer to the end user. Essentially, marketers can serve as a middle-man between any two parties, and can offer either bundled or unbundled service to its customers. Thus, in the structure mentioned above, marketers may be present between any two parties to facilitate the sale or purchase of natural gas, and can also contract for transportation and storage. Marketers may own the natural gas being transferred, or may simply facilitate its transportation and storage. Essentially, a myriad of different ownership pathways exist for natural gas to proceed from producer to end user.
Simplified Structure of Industry after Pipeline Unbundling
Source: NGSA
The diagram shows a simplified representation of the structure of the natural gas industry after pipeline unbundling and wellhead price deregulation. It is important to note that the actual ownership pathway of the gas may be significantly more complicated, as the marketer or the LDC are not the final users. Either of these two entities may sell directly to the end user, or to other marketers or LDCs.
The regulatory environment of the day has a dramatic effect on shaping the structure of the industry. To learn more about the current regulatory environment for the natural gas industry, click here.
The actions of the federal government and its related agencies and departments can also have a significant impact on the structure and functioning of the natural gas industry. To learn more about how government actions can affect the natural gas industry, click here.
Source: NGSA
Industry Makeup
Now that the basic structure of the natural gas industry has been discussed, it is possible to examine the business characteristics and relevant statistics of each industry segment.
An excellent source for statistics and information on the natural gas industry and its various sectors is the Energy Information Administration (EIA). The EIA was created in 1977 as the statistical arm of the Department of Energy, charged with developing energy data and analyses that help to enhance the understanding of the energy industry. Click here to view the EIA's homepage. For a good overview of relevant updated statistics related to the natural gas industry, view the EIA's summary statistics on natural gas here.
Below are some statistics (based on EIA data for the year 2007) on the makeup of the natural gas industry. Follow the links to view the most up to date information on each sector:
* Producers - There are over 6,300 producers of natural gas in the United States. These companies range from large integrated producers with worldwide operations and interests in all segments of the oil and gas industry, to small one or two person operations that may only have partial interest in a single well. The largest integrated production companies are termed 'Majors', of which there are 21 active in the United States. For more information on the production of natural gas in the United States, click here. Information on the production of natural gas is also available on EIA's website here.
* Processing - There are over 530 natural gas processing plants in the United States, which were responsible for processing almost 15 trillion cubic feet of natural gas and extracting over 630 million barrels of natural gas liquids in 2006. For more information on natural gas processing, visit the Gas Processors Association here. For updated statistics on the processing of natural gas in the United States, click here.
* Pipelines - There are about 160 pipeline companies in the United States, operating over 300,000 miles of pipe. Of this, 180,000 miles consist of interstate pipelines. This pipeline capacity is capable of transporting over 148 Billion cubic feet (Bcf) of gas per day from producing regions to consuming regions. For more information on the natural gas pipeline infrastructure in the United States, click here. To see a list of major pipeline companies, including links to their websites, visit the Federal Energy Regulatory Commission's website here.
* Storage - There are about 123 natural gas storage operators in the United States, which control approximately 400 underground storage facilities. These facilities have a storage capacity of 4,059 Bcf of natural gas, and an average daily deliverability of 85 Bcf per day. The EIA maintains a weekly storage survey, monitoring the injection and withdrawal of stored natural gas. This survey gives a good indication of the status of the natural gas market, measuring the natural gas that is extracted or stored at any one time in response to the demand for natural gas. To learn more about this survey, visit the EIA here. To view more statistics and information related to natural gas storage in the United States, click here.
* Marketing - The status of the natural gas marketing segment of the industry is constantly changing, as companies enter and exit from the industry quite frequently. As of 2000, there were over 260 companies involved in the marketing of natural gas. In this same year, about 80 percent of all the natural gas supplied and consumed in North America passed through the hands of natural gas marketers. The volume of non-physical natural gas that passes through the hands of marketers is very large, and can be much greater than the actual physical volume consumed. This is an indication of vibrant, transparent commodity markets for natural gas. For instance, in 1998, it is estimated that for every thousand cubic feet of natural gas consumed, about 2.7 thousand cubic feet passed through natural gas marketers. For more information on natural gas and energy marketers, visit the National Energy Marketers Association here.
* Local Distribution Companies - There are about 1,200 natural gas distribution companies in the U.S., with ownership of over 1.2 million miles of distribution pipe. While many of these companies maintain monopoly status over their distribution region, many states are currently in the process of offering consumer choice options with respect to their natural gas distribution. To learn about the status of distribution restructuring across the United States visit the EIA here. To learn more about natural gas distribution companies and their regulatory structure, visit the National Association of Regulatory Utility Commissioners here. The American Gas Association is also an excellent source for information on LDCs.
Natural Gas Market Overview
The nature of the natural gas market is similar to other competitive commodity markets: prices reflect the ability of supply to meet demand at any one time. The economics of producing natural gas are relatively straightforward. Like any other commodity, the price of natural gas is largely a function of demand and the supply of the product.
Natural Gas Volatility and Price Levels at Henry Hub
Source: Energy Information Administration, Office of Oil and Gas;
based on Natural Gas Monthly publications
When demand for gas is rising, and prices rise accordingly, producers will respond by increasing their exploration and production capabilities. As a consequence, production will over time tend to increase to match the stronger demand. However, unlike many products, where production can be increased and sustained in a matter of hours or days, increases in natural gas production involve much longer lead times. It takes time to acquire leases, secure required government permits, do exploratory seismic work, drill wells and connect wells to pipelines; this can take as little as 6 months, and in some cases up to ten years. There is also uncertainty about the geologic productivity of existing wells and planned new wells. Existing wells will naturally decline at some point of their productive life and the production profile over time is not known with certainty. Thus, it takes time to adjust supplies in the face of increasing demand and rising prices. To learn more about factors that affect the supply of natural gas, click here.
The supply response to prices was demonstrated emphatically following the winter of 2000-2001 as producers substantially increased production investments and activities in response to higher prices. Likewise higher prices (and the U.S. recession) also reduced demand for natural gas. The supply and demand responses led to a new equilibrium in 2002 between supply and demand at market clearing prices far below the 2000-2001 peak.
Source: NGSA
In an environment of falling gas prices, the converse will be true. Producers will respond to lower natural gas prices over time by reducing their expenditures for new exploration and production. Production decline in existing wells will decrease productive capacity. At the same time, the lower prices will increase the demand for natural gas. This, in turn, will ultimately result in upward pressure on gas prices. This relationship between changes in the price of natural gas and variations in the supply of and demand for natural gas is sometimes referred to as the "natural gas market cycle."
In the short term, and in relation to existing producing wells, the supply of natural gas is relatively inelastic in response to changes in the price of natural gas. Contrary to some views, producers do not routinely shut in wells when natural gas prices are low. There are several economic drivers that provide an incentive for producers to continue producing even in the face of lower prices.
* First, if production is halted from a natural gas well it may not be possible to restore the well's production due to reservoir and wellbore characteristics.
* Second, the net present value of recapturing production in the future may be negative relative to producing the gas today -- i.e., it may be better to produce gas today than to wait until the future to produce the gas. If a producer chooses not to operate a well, the lost production cannot be recovered the next month but is instead is deferred potentially years in the future. There are no guarantees that the prices for gas in the future are going to be higher than prices today.
* Third, some gas is produced in association with oil, and in order to stop the flow of natural gas, the oil production must be stopped as well, which may not be economic.
* Finally, a producer may be financially or contractually bound to produce specific volumes of natural gas.
Producers and consumers react rationally to changes in prices. Fluctuations in gas prices and production levels are a normal response of the competitive and liquid North America gas market. While the price of the natural gas commodity fluctuates, it is this inherent volatility that provides the signals (and incentives) to both suppliers and consumers to ensure a constant move towards supply and demand equality.
Because the natural gas market is so heavily dependent on the interaction of supply and demand, it is important to have knowledge of the factors that affect these two components. To learn more about the supply and demand of natural gas in the United States, click on the links below:
* Natural Gas Demand
* Natural Gas Supply
To learn more about natural gas as a commodity, click here.
To learn more about the pricing of natural gas in competitive markets, visit the International Energy Agency here.
Natural Gas and Technology
Source: ChevronTexaco Corporation
Over the past thirty years, the oil and natural gas industry has transformed into one of the most technologically advanced industries in the United States. New innovations have reshaped the industry into a technology leader, in all segments of the industry. This section will discuss the role of technology in the evolution of the natural gas industry, focusing on technologies in the exploration and production sector, as well as a few select innovations that have had a profound effect on the potential for natural gas. Scroll down, or click on the links below to jump ahead:
* Advances in the Exploration and Production Sector
* Liquefied Natural Gas
* Natural Gas Fuel Cells
* Natural Gas Technology Resources
In recent years, demand for natural gas has grown substantially. However, as the natural gas industry in the United States becomes more mature, domestically available resources become harder to find and produce. As large, conventional natural gas deposits are extracted, the natural gas left in the ground is commonly found in less conventional deposits, which are harder to discover and produce than has historically been the case. However, the natural gas industry has been able to keep pace with demand, and produce greater amounts of natural gas despite the increasingly unconventional and elusive nature. The ability of the industry to increase production in this manner has been a direct result of technological innovations. Below is a brief list of some of the major technological advancements that have been made recently:
Advances in the Exploration and Production Sector
Technological innovation in the exploration and production sector has equipped the industry with the equipment and practices necessary to continually increase the production of natural gas to meet rising demand. These technologies serve to make the exploration and production of natural gas more efficient, safe, and environmentally friendly. Despite the fact that natural gas deposits are continually being found deeper in the ground, in remote, inhospitable areas that provide a challenging environment in which to produce natural gas, the exploration and production industry has not only kept up its production pace, but in fact has improved the general nature of its operations. Some highlights of technological development in the exploration and production sector include:
* 22,000 fewer wells are needed on an annual basis to develop the same amount of oil and gas reserves as were developed in 1985.
* Had technology remained constant since 1985, it would take two wells to produce the same amount of oil and natural gas as one 1985 well. However, advances in technology mean that one well today can produce two times as much as a single 1985 well.
* Drilling wastes have decreased by as much as 148 million barrels due to increased well productivity and fewer wells.
* The drilling footprint of well pads has decreased by as much as 70 percent due to advanced drilling technology, which is extremely useful for drilling in sensitive areas.
* By using modular drilling rigs and slimhole drilling, the size and weight of drilling rigs can be reduced by up to 75 percent over traditional drilling rigs, reducing their surface impact.
* Had technology, and thus drilling footprints, remained at 1985 levels, today's drilling footprints would take up an additional 17,000 acres of land.
* New exploration techniques and vibrational sources mean less reliance on explosives, reducing the impact of exploration on the environment.
Some of the major recent technological innovations in the exploration and production sector include:
*
Advanced 3-D Seismic Imaging
Source: NGSA
3-D and 4-D Seismic Imaging - The development of seismic imaging in three dimensions greatly changed the nature of natural gas exploration. This technology uses traditional seismic imaging techniques, combined with powerful computers and processors, to create a three-dimensional model of the subsurface layers. 4-D seismology expands on this, by adding time as a dimension, allowing exploration teams to observe how subsurface characteristics change over time. Exploration teams can now identify natural gas prospects more easily, place wells more effectively, reduce the number of dry holes drilled, reduce drilling costs, and cut exploration time. This leads to both economic and environmental benefits.
* CO2-Sand Fracturing - Fracturing techniques have been used since the 1970s to help increase the flow rate of natural gas and oil from underground formations. CO2-Sand fracturing involves using a mixture of sand propants and liquid CO2 to fracture formations, creating and enlarging cracks through which oil and natural gas may flow more freely. The CO2 then vaporizes, leaving only sand in the formation, holding the newly enlarged cracks open. Because there are no other substances used in this type of fracturing, there are no 'leftovers' from the fracturing process that must be removed. This means that, while this type of fracturing effectively opens the formation and allows for increased recovery of oil and natural gas, it does not damage the deposit, generates no below ground wastes, and protects groundwater resources.
* Coiled Tubing - Coiled tubing technologies replace the traditional rigid, jointed drill pipe with a long, flexible coiled pipe string. This greatly reduces the cost of drilling, as well as providing a smaller drilling footprint, requiring less drilling mud, faster rig set up, and reducing the time normally needed to make drill pipe connections. Coiled tubing can also be used in combination with slimhole drilling to provide very economic drilling conditions, and less impact on the environment.
* Measurement While Drilling - Measurement-While-Drilling (MWD) systems allow for the collection of data from the bottom of a well as it is being drilled. This allows engineers and drilling teams access to up to the second information on the exact nature of the rock formations being encountered by the drill bit. This improves drilling efficiency and accuracy in the drilling process, allows better formation evaluation as the drill bit encounters the underground formation, and reduces the chance of formation damage and blowouts.
* Slimhole Drilling - Slimhole drilling is exactly as it sounds; drilling a slimmer hole in the ground to get to natural gas and oil deposits. In order to be considered slimhole drilling, at least 90 percent of a well must be drilled with a drill bit less than six inches in diameter (whereas conventional wells typically use drill bits as large as 12.25 inches in diameter). Slimhole drilling can significantly improve the efficiency of drilling operations, as well as decrease its environmental impact. In fact, shorter drilling times and smaller drilling crews can translate into a 50 percent reduction in drilling costs, while reducing the drilling footprint by as much as 75 percent. Because of its low cost profile and reduced environmental impact, slimhole drilling provides a method of economically drilling exploratory wells in new areas, drilling deeper wells in existing fields, and providing an efficient means for extracting more natural gas and oil from undepleted fields.
*
Offshore Production - NASA of the Sea
Source: Anadarko Petroleum Corporation
Offshore Drilling Technology - The offshore oil and gas production sector is sometimes referred to as 'NASA of the Sea', due to the monumental achievements in deepwater drilling that have been facilitated by state of the art technology. Natural gas and oil deposits are being found at locations that are deeper and deeper underwater. Whereas offshore drilling operations used to be some of the most risky and dangerous undertakings, new technology, including improved offshore drilling rigs, dynamic positioning devices and sophisticated navigation systems are allowing safe, efficient offshore drilling in waters more than 10,000 feet deep. To learn more about offshore drilling, click here.
The above technological advancements provide only a snapshot of the increasingly sophisticated technology being developed and put into practice in the exploration and production of natural gas and oil. New technologies and applications are being developed constantly, and serve to improve the economics of producing natural gas, allow for the production of deposits formerly considered too unconventional or uneconomic to develop, and ensure that the supply of natural gas keeps up with steadily increasing demand. Sufficient domestic natural gas resources exist to help fuel the U.S. for a significant period of time, and technology is playing a huge role in providing low-cost, environmentally sound methods of extracting these resources.
Two other technologies that are revolutionizing the natural gas industry include the increased use of liquefied natural gas, and natural gas fuel cells. These technologies are discussed below.
Liquefied Natural Gas
Cooling natural gas to about -260°F at normal pressure results in the condensation of the gas into liquid form, known as Liquefied Natural Gas (LNG). LNG can be very useful, particularly for the transportation of natural gas, since LNG takes up about one six hundredth the volume of gaseous natural gas. While LNG is reasonably costly to produce, advances in technology are reducing the costs associated with the liquification and regasification of LNG. Because it is easy to transport, LNG can serve to make economical those stranded natural gas deposits for which the construction of pipelines is uneconomical.
LNG Delivery Facility with Tanker
Source: NGSA
LNG, when vaporized to gaseous form, will only burn in concentrations of between 5 and 15 percent mixed with air. In addition, LNG, or any vapor associated with LNG, will not explode in an unconfined environment. Thus, in the unlikely event of an LNG spill, the natural gas has little chance of igniting an explosion. Liquification also has the advantage of removing oxygen, carbon dioxide, sulfur, and water from the natural gas, resulting in LNG that is almost pure methane.
LNG is typically transported by specialized tanker with insulated walls, and is kept in liquid form by autorefrigeration, a process in which the LNG is kept at its boiling point, so that any heat additions are countered by the energy lost from LNG vapor that is vented out of storage and used to power the vessel.
The increased use of LNG is allowing for the production and marketing of natural gas deposits that were previously economically unrecoverable. Although it currently accounts for only about 1 percent of natural gas used in the United States, it is expected that LNG imports will provide a steady, dependable source of natural gas for U.S. consumption. To learn more about how LNG factors into the supply of natural gas in the United States, click here.
Natural Gas Fuel Cells
Fuel cells powered by natural gas are an extremely exciting and promising new technology for the clean and efficient generation of electricity. Fuel cells have the ability to generate electricity using electrochemical reactions as opposed to combustion of fossil fuels to generate electricity. Essentially, a fuel cell works by passing streams of fuel (usually hydrogen) and oxidants over electrodes that are separated by an electrolyte. This produces a chemical reaction that generates electricity without requiring the combustion of fuel, or the addition of heat as is common in the traditional generation of electricity. When pure hydrogen is used as fuel, and pure oxygen is used as the oxidant, the reaction that takes place within a fuel cell produces only water, heat, and electricity. In practice, fuel cells result in very low emission of harmful pollutants, and the generation of high-quality, reliable electricity. The use of natural gas powered fuel cells has a number of benefits, including:
*
How a Fuel Cell Works
Source: DOE - Office of Fossil Energy
Clean Electricity - Fuel cells provide the cleanest method of producing electricity from fossil fuels. While a pure hydrogen, pure oxygen fuel cell produces only water, electricity, and heat, fuel cells in practice emit only trace amounts of sulfur compounds, and very low levels of carbon dioxide. However, the carbon dioxide produced by fuel cell use is concentrated and can be readily recaptured, as opposed to being emitted into the atmosphere.
* Distributed Generation - Fuel cells can come in extremely compact sizes, allowing for their placement wherever electricity is needed. This includes residential, commercial, industrial, and even transportation settings.
* Dependability - Fuel cells are completely enclosed units, with no moving parts or complicated machinery. This translates into a dependable source of electricity, capable of operating for thousands of hours. In addition, they are very quiet and safe sources of electricity. Fuel cells also do not have electricity surges, meaning they can be used where a constant, dependably source of electricity is needed.
* Efficiency - Fuel cells convert the energy stored within fossil fuels into electricity much more efficiently than traditional generation of electricity using combustion. This means that less fuel is required to produce the same amount of electricity. The National Energy Technology Laboratory estimates that, used in combination with natural gas turbines, fuel cell generation facilities can be produced that will operate in the 1 to 20 Megawatt range at 70 percent efficiency, which is much higher than the efficiencies that can be reached by traditional generation methods within that output range.
The generation of electricity has traditionally been a very polluting, inefficient process. However, with new fuel cell technology, the future of electricity generation is expected to change dramatically in the next ten to twenty years. Research and development into fuel cell technology is ongoing, to ensure that the technology is refined to a level where it is cost effective for all varieties of electric generation requirements.
To learn more about fuel cell development, visit the Fuel Cells 2000 website here.
Natural Gas Technology Resources
The natural gas industry is joined by government agencies and laboratories, private research and development firms, and environmental technology groups in coming up with new technologies that may improve the efficiency, cost-effectiveness, and environmental soundness of the natural gas industry. Below are links to a number of resources that provide information on new technological developments in the oil and natural gas industry:
*
Source: ChevronTexaco Corporation
Over the past thirty years, the oil and natural gas industry has transformed into one of the most technologically advanced industries in the United States. New innovations have reshaped the industry into a technology leader, in all segments of the industry. This section will discuss the role of technology in the evolution of the natural gas industry, focusing on technologies in the exploration and production sector, as well as a few select innovations that have had a profound effect on the potential for natural gas. Scroll down, or click on the links below to jump ahead:
* Advances in the Exploration and Production Sector
* Liquefied Natural Gas
* Natural Gas Fuel Cells
* Natural Gas Technology Resources
In recent years, demand for natural gas has grown substantially. However, as the natural gas industry in the United States becomes more mature, domestically available resources become harder to find and produce. As large, conventional natural gas deposits are extracted, the natural gas left in the ground is commonly found in less conventional deposits, which are harder to discover and produce than has historically been the case. However, the natural gas industry has been able to keep pace with demand, and produce greater amounts of natural gas despite the increasingly unconventional and elusive nature. The ability of the industry to increase production in this manner has been a direct result of technological innovations. Below is a brief list of some of the major technological advancements that have been made recently:
Advances in the Exploration and Production Sector
Technological innovation in the exploration and production sector has equipped the industry with the equipment and practices necessary to continually increase the production of natural gas to meet rising demand. These technologies serve to make the exploration and production of natural gas more efficient, safe, and environmentally friendly. Despite the fact that natural gas deposits are continually being found deeper in the ground, in remote, inhospitable areas that provide a challenging environment in which to produce natural gas, the exploration and production industry has not only kept up its production pace, but in fact has improved the general nature of its operations. Some highlights of technological development in the exploration and production sector include:
* 22,000 fewer wells are needed on an annual basis to develop the same amount of oil and gas reserves as were developed in 1985.
* Had technology remained constant since 1985, it would take two wells to produce the same amount of oil and natural gas as one 1985 well. However, advances in technology mean that one well today can produce two times as much as a single 1985 well.
* Drilling wastes have decreased by as much as 148 million barrels due to increased well productivity and fewer wells.
* The drilling footprint of well pads has decreased by as much as 70 percent due to advanced drilling technology, which is extremely useful for drilling in sensitive areas.
* By using modular drilling rigs and slimhole drilling, the size and weight of drilling rigs can be reduced by up to 75 percent over traditional drilling rigs, reducing their surface impact.
* Had technology, and thus drilling footprints, remained at 1985 levels, today's drilling footprints would take up an additional 17,000 acres of land.
* New exploration techniques and vibrational sources mean less reliance on explosives, reducing the impact of exploration on the environment.
Some of the major recent technological innovations in the exploration and production sector include:
*
Advanced 3-D Seismic Imaging
Source: NGSA
3-D and 4-D Seismic Imaging - The development of seismic imaging in three dimensions greatly changed the nature of natural gas exploration. This technology uses traditional seismic imaging techniques, combined with powerful computers and processors, to create a three-dimensional model of the subsurface layers. 4-D seismology expands on this, by adding time as a dimension, allowing exploration teams to observe how subsurface characteristics change over time. Exploration teams can now identify natural gas prospects more easily, place wells more effectively, reduce the number of dry holes drilled, reduce drilling costs, and cut exploration time. This leads to both economic and environmental benefits.
* CO2-Sand Fracturing - Fracturing techniques have been used since the 1970s to help increase the flow rate of natural gas and oil from underground formations. CO2-Sand fracturing involves using a mixture of sand propants and liquid CO2 to fracture formations, creating and enlarging cracks through which oil and natural gas may flow more freely. The CO2 then vaporizes, leaving only sand in the formation, holding the newly enlarged cracks open. Because there are no other substances used in this type of fracturing, there are no 'leftovers' from the fracturing process that must be removed. This means that, while this type of fracturing effectively opens the formation and allows for increased recovery of oil and natural gas, it does not damage the deposit, generates no below ground wastes, and protects groundwater resources.
* Coiled Tubing - Coiled tubing technologies replace the traditional rigid, jointed drill pipe with a long, flexible coiled pipe string. This greatly reduces the cost of drilling, as well as providing a smaller drilling footprint, requiring less drilling mud, faster rig set up, and reducing the time normally needed to make drill pipe connections. Coiled tubing can also be used in combination with slimhole drilling to provide very economic drilling conditions, and less impact on the environment.
* Measurement While Drilling - Measurement-While-Drilling (MWD) systems allow for the collection of data from the bottom of a well as it is being drilled. This allows engineers and drilling teams access to up to the second information on the exact nature of the rock formations being encountered by the drill bit. This improves drilling efficiency and accuracy in the drilling process, allows better formation evaluation as the drill bit encounters the underground formation, and reduces the chance of formation damage and blowouts.
* Slimhole Drilling - Slimhole drilling is exactly as it sounds; drilling a slimmer hole in the ground to get to natural gas and oil deposits. In order to be considered slimhole drilling, at least 90 percent of a well must be drilled with a drill bit less than six inches in diameter (whereas conventional wells typically use drill bits as large as 12.25 inches in diameter). Slimhole drilling can significantly improve the efficiency of drilling operations, as well as decrease its environmental impact. In fact, shorter drilling times and smaller drilling crews can translate into a 50 percent reduction in drilling costs, while reducing the drilling footprint by as much as 75 percent. Because of its low cost profile and reduced environmental impact, slimhole drilling provides a method of economically drilling exploratory wells in new areas, drilling deeper wells in existing fields, and providing an efficient means for extracting more natural gas and oil from undepleted fields.
*
Offshore Production - NASA of the Sea
Source: Anadarko Petroleum Corporation
Offshore Drilling Technology - The offshore oil and gas production sector is sometimes referred to as 'NASA of the Sea', due to the monumental achievements in deepwater drilling that have been facilitated by state of the art technology. Natural gas and oil deposits are being found at locations that are deeper and deeper underwater. Whereas offshore drilling operations used to be some of the most risky and dangerous undertakings, new technology, including improved offshore drilling rigs, dynamic positioning devices and sophisticated navigation systems are allowing safe, efficient offshore drilling in waters more than 10,000 feet deep. To learn more about offshore drilling, click here.
The above technological advancements provide only a snapshot of the increasingly sophisticated technology being developed and put into practice in the exploration and production of natural gas and oil. New technologies and applications are being developed constantly, and serve to improve the economics of producing natural gas, allow for the production of deposits formerly considered too unconventional or uneconomic to develop, and ensure that the supply of natural gas keeps up with steadily increasing demand. Sufficient domestic natural gas resources exist to help fuel the U.S. for a significant period of time, and technology is playing a huge role in providing low-cost, environmentally sound methods of extracting these resources.
Two other technologies that are revolutionizing the natural gas industry include the increased use of liquefied natural gas, and natural gas fuel cells. These technologies are discussed below.
Liquefied Natural Gas
Cooling natural gas to about -260°F at normal pressure results in the condensation of the gas into liquid form, known as Liquefied Natural Gas (LNG). LNG can be very useful, particularly for the transportation of natural gas, since LNG takes up about one six hundredth the volume of gaseous natural gas. While LNG is reasonably costly to produce, advances in technology are reducing the costs associated with the liquification and regasification of LNG. Because it is easy to transport, LNG can serve to make economical those stranded natural gas deposits for which the construction of pipelines is uneconomical.
LNG Delivery Facility with Tanker
Source: NGSA
LNG, when vaporized to gaseous form, will only burn in concentrations of between 5 and 15 percent mixed with air. In addition, LNG, or any vapor associated with LNG, will not explode in an unconfined environment. Thus, in the unlikely event of an LNG spill, the natural gas has little chance of igniting an explosion. Liquification also has the advantage of removing oxygen, carbon dioxide, sulfur, and water from the natural gas, resulting in LNG that is almost pure methane.
LNG is typically transported by specialized tanker with insulated walls, and is kept in liquid form by autorefrigeration, a process in which the LNG is kept at its boiling point, so that any heat additions are countered by the energy lost from LNG vapor that is vented out of storage and used to power the vessel.
The increased use of LNG is allowing for the production and marketing of natural gas deposits that were previously economically unrecoverable. Although it currently accounts for only about 1 percent of natural gas used in the United States, it is expected that LNG imports will provide a steady, dependable source of natural gas for U.S. consumption. To learn more about how LNG factors into the supply of natural gas in the United States, click here.
Natural Gas Fuel Cells
Fuel cells powered by natural gas are an extremely exciting and promising new technology for the clean and efficient generation of electricity. Fuel cells have the ability to generate electricity using electrochemical reactions as opposed to combustion of fossil fuels to generate electricity. Essentially, a fuel cell works by passing streams of fuel (usually hydrogen) and oxidants over electrodes that are separated by an electrolyte. This produces a chemical reaction that generates electricity without requiring the combustion of fuel, or the addition of heat as is common in the traditional generation of electricity. When pure hydrogen is used as fuel, and pure oxygen is used as the oxidant, the reaction that takes place within a fuel cell produces only water, heat, and electricity. In practice, fuel cells result in very low emission of harmful pollutants, and the generation of high-quality, reliable electricity. The use of natural gas powered fuel cells has a number of benefits, including:
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How a Fuel Cell Works
Source: DOE - Office of Fossil Energy
Clean Electricity - Fuel cells provide the cleanest method of producing electricity from fossil fuels. While a pure hydrogen, pure oxygen fuel cell produces only water, electricity, and heat, fuel cells in practice emit only trace amounts of sulfur compounds, and very low levels of carbon dioxide. However, the carbon dioxide produced by fuel cell use is concentrated and can be readily recaptured, as opposed to being emitted into the atmosphere.
* Distributed Generation - Fuel cells can come in extremely compact sizes, allowing for their placement wherever electricity is needed. This includes residential, commercial, industrial, and even transportation settings.
* Dependability - Fuel cells are completely enclosed units, with no moving parts or complicated machinery. This translates into a dependable source of electricity, capable of operating for thousands of hours. In addition, they are very quiet and safe sources of electricity. Fuel cells also do not have electricity surges, meaning they can be used where a constant, dependably source of electricity is needed.
* Efficiency - Fuel cells convert the energy stored within fossil fuels into electricity much more efficiently than traditional generation of electricity using combustion. This means that less fuel is required to produce the same amount of electricity. The National Energy Technology Laboratory estimates that, used in combination with natural gas turbines, fuel cell generation facilities can be produced that will operate in the 1 to 20 Megawatt range at 70 percent efficiency, which is much higher than the efficiencies that can be reached by traditional generation methods within that output range.
The generation of electricity has traditionally been a very polluting, inefficient process. However, with new fuel cell technology, the future of electricity generation is expected to change dramatically in the next ten to twenty years. Research and development into fuel cell technology is ongoing, to ensure that the technology is refined to a level where it is cost effective for all varieties of electric generation requirements.
To learn more about fuel cell development, visit the Fuel Cells 2000 website here.
Natural Gas Technology Resources
The natural gas industry is joined by government agencies and laboratories, private research and development firms, and environmental technology groups in coming up with new technologies that may improve the efficiency, cost-effectiveness, and environmental soundness of the natural gas industry. Below are links to a number of resources that provide information on new technological developments in the oil and natural gas industry:
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Subsidi Energi
Bisa Tembus di Atas Rp200 Triliun
Jakarta, CyberNews. Panitia Anggaran (Panggar) DPR mengungkapkan, subsidi energi yang terdiri dari BBM dan listrik pada 2008 bisa menembus di atas Rp200 triliun.
Anggota Panggar Tjatur Sapto Edy di Jakarta, Rabu, mengemukakan dengan harga minyak Indonesia (Indonesia Crude Price/ICP) rata-rata selama tahun 2008 sebesar 95 dolar AS per barel, maka subsidi BBM mencapai Rp130 triliun dan listrik Rp80 triliun.
"Nilai subsidi sebesar itu bukan tidak mungkin tercapai, sebab harga kontrak minyak dunia sampai Agustus 2008 sudah di atas 90 dolar AS per barel," katanya.
Sebelumnya, Menteri ESDM Purnomo Yusgiantoro juga menjelaskan dengan harga minyak dunia yang bertahan di level 100 dolar AS per barel saat ini, harga ICP sudah di atas 90 dolar AS per barel.
Purnomo menambahkan, meski subsidi melonjak, pemerintah tidak akan mengambil opsi kenaikan harga BBM, mengingat dampak sosial dan politiknya begitu besar. Pemerintah juga tidak akan menaikkan harga BBM dengan besaran kecil dan hanya satu jenis, karena dampaknya sama saja.
Menurut Purnomo, pemerintah hanya akan melakukan langkah penghematan subsidi melalui penurunan volumenya. Tjatur juga menambahkan, angka subsidi yang begitu besar harus diimbangi dengan kenaikan produksi minyak secara signifikan. "Kalau produksi minyak tidak dinaikkan, maka struktur anggaran di tahun 2008 ini bisa runtuh," katanya.
Karenanya, lanjut Tjatur, DPR tetap meminta produksi minyak sebesar 960.000 barel per hari tanpa memasukkan produksi PT Chevron Pacific Indonesia (CPI) yang ditukar dengan gas ConocoPhillips sebesar 50.000 barel per hari.
Berdasarkan perhitungan, negara hanya mendapat Rp578 miliar dari produksi CPI 50.000 barel per hari tersebut. Sebab, kalau disetarakan, produksi CPI 50.000 barel per hari itu sama dengan 2.500 barel per hari. Pendapatan tersebut hanya berasal dari penerimaan "domestic market obligation" (DMO).
Kalau produksinya benar-benar riil 50.000 barel per hari, maka negara mendapat tambahan pendapatan Rp7,5 triliun. Pemerintah sendiri tetap mengusulkan angka produksi 910.000 barel per hari. Sampai saat ini, pemerintah dan DPR masih membahas sejumlah asumsi RAPBN 2008 termasuk harga minyak, produksi minyak, dan besaran subsidi.
Jakarta, CyberNews. Panitia Anggaran (Panggar) DPR mengungkapkan, subsidi energi yang terdiri dari BBM dan listrik pada 2008 bisa menembus di atas Rp200 triliun.
Anggota Panggar Tjatur Sapto Edy di Jakarta, Rabu, mengemukakan dengan harga minyak Indonesia (Indonesia Crude Price/ICP) rata-rata selama tahun 2008 sebesar 95 dolar AS per barel, maka subsidi BBM mencapai Rp130 triliun dan listrik Rp80 triliun.
"Nilai subsidi sebesar itu bukan tidak mungkin tercapai, sebab harga kontrak minyak dunia sampai Agustus 2008 sudah di atas 90 dolar AS per barel," katanya.
Sebelumnya, Menteri ESDM Purnomo Yusgiantoro juga menjelaskan dengan harga minyak dunia yang bertahan di level 100 dolar AS per barel saat ini, harga ICP sudah di atas 90 dolar AS per barel.
Purnomo menambahkan, meski subsidi melonjak, pemerintah tidak akan mengambil opsi kenaikan harga BBM, mengingat dampak sosial dan politiknya begitu besar. Pemerintah juga tidak akan menaikkan harga BBM dengan besaran kecil dan hanya satu jenis, karena dampaknya sama saja.
Menurut Purnomo, pemerintah hanya akan melakukan langkah penghematan subsidi melalui penurunan volumenya. Tjatur juga menambahkan, angka subsidi yang begitu besar harus diimbangi dengan kenaikan produksi minyak secara signifikan. "Kalau produksi minyak tidak dinaikkan, maka struktur anggaran di tahun 2008 ini bisa runtuh," katanya.
Karenanya, lanjut Tjatur, DPR tetap meminta produksi minyak sebesar 960.000 barel per hari tanpa memasukkan produksi PT Chevron Pacific Indonesia (CPI) yang ditukar dengan gas ConocoPhillips sebesar 50.000 barel per hari.
Berdasarkan perhitungan, negara hanya mendapat Rp578 miliar dari produksi CPI 50.000 barel per hari tersebut. Sebab, kalau disetarakan, produksi CPI 50.000 barel per hari itu sama dengan 2.500 barel per hari. Pendapatan tersebut hanya berasal dari penerimaan "domestic market obligation" (DMO).
Kalau produksinya benar-benar riil 50.000 barel per hari, maka negara mendapat tambahan pendapatan Rp7,5 triliun. Pemerintah sendiri tetap mengusulkan angka produksi 910.000 barel per hari. Sampai saat ini, pemerintah dan DPR masih membahas sejumlah asumsi RAPBN 2008 termasuk harga minyak, produksi minyak, dan besaran subsidi.
Malang to petition over shrinking forests Wahyoe Boediwardhana , The Jakarta Post , Malang | Wed, 03/12/2008 11:56 AM | The Archipelago Resid
Malang to petition over shrinking forests
Wahyoe Boediwardhana , The Jakarta Post , Malang | Wed, 03/12/2008 11:56 AM | The Archipelago
Residents of Malang will petition President Susilo Bambang Yudhoyono over the deterioration of public forests in the area, an environmental group says.
The petition will be prepared by members of the Greater Malang People's Environment Awareness Alliance (AMPLMR), Chalid Muhammad, executive director of the Indonesian Forum for the Environment (Walhi), said in Malang, East Java, on Sunday.
According to Walhi, the rate of forest destruction in the Greater Malang area is alarming, with only 2.8 percent of the entire forested area in Malang, originally encompassing around 110.6 square kilometers, still intact.
"According to Law No. 26/2007, a city must set aside at least 30 percent of its total area for open green areas, such as parks or forests," Chalid said.
He said the provincial administration was at fault for uncontrolled development of residential and industrial areas, the main factor in the severe rate of forest destruction. The same problem is occurring in other large cities in Indonesia, especially in Java, he said.
One area AMPLMR is seeking to retain as a conservation area is the land formerly used by the Agriculture Training Academy, spanning 28.5 hectares.
The land, which is included as one of Malang city's open or forested areas, was acquired in a land exchange deal in 1989, with plans the municipality and developers would jointly develop it into a residential area.
Under the plans, PT Bakrieland Development and PT Duta Perkasa Unggul Lestari will jointly build an upscale residential estate on the plot of land.
Walhi and AMPLMR say the proposed development is an environmental offense. AMPLMR coordinator Ahmad Murdjoko alleged environmental groups and students had frequently been intimidated during the 17-year struggle to protect the land as a forested area, city forest and environmental education park.
Chairman of the East Java Walhi council, Purnawan Negara, denied his organization was opposed to developers who intended to develop the area.
"We won't stop anyone from developing the area. Our only focus is on objecting to any changes in land allocation. As long as development is clear and in line with the law, we would even support it. If Bakrieland develops the area as an ecotourism area or environmental education center, we'll give our support," Purnawan said.
AMPLMR sent a petition against the shift in land allocation to officials in Jakarta.
The alliance, supported by 14 NGOs in the Greater Malang area, asked the National Commission on Human Rights to conduct an investigation into forest destruction by developers, on the grounds access to natural environment is a basic human right.
It also urged the Malang mayor to obey Ordinance No. 7/2001 on spatial planning, which AMPLMR deemed had been violated.
The petition asks the President to take strict action against officials who cause environmental destruction.
AMPLMR later asked Walhi chief Chalid to send the petition to 18 individuals deemed responsible for the issue. over shrinking forests
Residents of Malang will petition President Susilo Bambang Yudhoyono over the deterioration of public forests in the area, an environmental group says.
The petition will be prepared by members of the Greater Malang People's Environment Awareness Alliance (AMPLMR), Chalid Muhammad, executive director of the Indonesian Forum for the Environment (Walhi), said in Malang, East Java, on Sunday.
According to Walhi, the rate of forest destruction in the Greater Malang area is alarming, with only 2.8 percent of the entire forested area in Malang, originally encompassing around 110.6 square kilometers, still intact.
"According to Law No. 26/2007, a city must set aside at least 30 percent of its total area for open green areas, such as parks or forests," Chalid said.
He said the provincial administration was at fault for uncontrolled development of residential and industrial areas, the main factor in the severe rate of forest destruction. The same problem is occurring in other large cities in Indonesia, especially in Java, he said.
One area AMPLMR is seeking to retain as a conservation area is the land formerly used by the Agriculture Training Academy, spanning 28.5 hectares.
The land, which is included as one of Malang city's open or forested areas, was acquired in a land exchange deal in 1989, with plans the municipality and developers would jointly develop it into a residential area.
Under the plans, PT Bakrieland Development and PT Duta Perkasa Unggul Lestari will jointly build an upscale residential estate on the plot of land.
Walhi and AMPLMR say the proposed development is an environmental offense. AMPLMR coordinator Ahmad Murdjoko alleged environmental groups and students had frequently been intimidated during the 17-year struggle to protect the land as a forested area, city forest and environmental education park.
Chairman of the East Java Walhi council, Purnawan Negara, denied his organization was opposed to developers who intended to develop the area.
"We won't stop anyone from developing the area. Our only focus is on objecting to any changes in land allocation. As long as development is clear and in line with the law, we would even support it. If Bakrieland develops the area as an ecotourism area or environmental education center, we'll give our support," Purnawan said.
AMPLMR sent a petition against the shift in land allocation to officials in Jakarta.
The alliance, supported by 14 NGOs in the Greater Malang area, asked the National Commission on Human Rights to conduct an investigation into forest destruction by developers, on the grounds access to natural environment is a basic human right.
It also urged the Malang mayor to obey Ordinance No. 7/2001 on spatial planning, which AMPLMR deemed had been violated.
The petition asks the President to take strict action against officials who cause environmental destruction.
AMPLMR later asked Walhi chief Chalid to send the petition to 18 individuals deemed responsible for the issue.
Wahyoe Boediwardhana , The Jakarta Post , Malang | Wed, 03/12/2008 11:56 AM | The Archipelago
Residents of Malang will petition President Susilo Bambang Yudhoyono over the deterioration of public forests in the area, an environmental group says.
The petition will be prepared by members of the Greater Malang People's Environment Awareness Alliance (AMPLMR), Chalid Muhammad, executive director of the Indonesian Forum for the Environment (Walhi), said in Malang, East Java, on Sunday.
According to Walhi, the rate of forest destruction in the Greater Malang area is alarming, with only 2.8 percent of the entire forested area in Malang, originally encompassing around 110.6 square kilometers, still intact.
"According to Law No. 26/2007, a city must set aside at least 30 percent of its total area for open green areas, such as parks or forests," Chalid said.
He said the provincial administration was at fault for uncontrolled development of residential and industrial areas, the main factor in the severe rate of forest destruction. The same problem is occurring in other large cities in Indonesia, especially in Java, he said.
One area AMPLMR is seeking to retain as a conservation area is the land formerly used by the Agriculture Training Academy, spanning 28.5 hectares.
The land, which is included as one of Malang city's open or forested areas, was acquired in a land exchange deal in 1989, with plans the municipality and developers would jointly develop it into a residential area.
Under the plans, PT Bakrieland Development and PT Duta Perkasa Unggul Lestari will jointly build an upscale residential estate on the plot of land.
Walhi and AMPLMR say the proposed development is an environmental offense. AMPLMR coordinator Ahmad Murdjoko alleged environmental groups and students had frequently been intimidated during the 17-year struggle to protect the land as a forested area, city forest and environmental education park.
Chairman of the East Java Walhi council, Purnawan Negara, denied his organization was opposed to developers who intended to develop the area.
"We won't stop anyone from developing the area. Our only focus is on objecting to any changes in land allocation. As long as development is clear and in line with the law, we would even support it. If Bakrieland develops the area as an ecotourism area or environmental education center, we'll give our support," Purnawan said.
AMPLMR sent a petition against the shift in land allocation to officials in Jakarta.
The alliance, supported by 14 NGOs in the Greater Malang area, asked the National Commission on Human Rights to conduct an investigation into forest destruction by developers, on the grounds access to natural environment is a basic human right.
It also urged the Malang mayor to obey Ordinance No. 7/2001 on spatial planning, which AMPLMR deemed had been violated.
The petition asks the President to take strict action against officials who cause environmental destruction.
AMPLMR later asked Walhi chief Chalid to send the petition to 18 individuals deemed responsible for the issue. over shrinking forests
Residents of Malang will petition President Susilo Bambang Yudhoyono over the deterioration of public forests in the area, an environmental group says.
The petition will be prepared by members of the Greater Malang People's Environment Awareness Alliance (AMPLMR), Chalid Muhammad, executive director of the Indonesian Forum for the Environment (Walhi), said in Malang, East Java, on Sunday.
According to Walhi, the rate of forest destruction in the Greater Malang area is alarming, with only 2.8 percent of the entire forested area in Malang, originally encompassing around 110.6 square kilometers, still intact.
"According to Law No. 26/2007, a city must set aside at least 30 percent of its total area for open green areas, such as parks or forests," Chalid said.
He said the provincial administration was at fault for uncontrolled development of residential and industrial areas, the main factor in the severe rate of forest destruction. The same problem is occurring in other large cities in Indonesia, especially in Java, he said.
One area AMPLMR is seeking to retain as a conservation area is the land formerly used by the Agriculture Training Academy, spanning 28.5 hectares.
The land, which is included as one of Malang city's open or forested areas, was acquired in a land exchange deal in 1989, with plans the municipality and developers would jointly develop it into a residential area.
Under the plans, PT Bakrieland Development and PT Duta Perkasa Unggul Lestari will jointly build an upscale residential estate on the plot of land.
Walhi and AMPLMR say the proposed development is an environmental offense. AMPLMR coordinator Ahmad Murdjoko alleged environmental groups and students had frequently been intimidated during the 17-year struggle to protect the land as a forested area, city forest and environmental education park.
Chairman of the East Java Walhi council, Purnawan Negara, denied his organization was opposed to developers who intended to develop the area.
"We won't stop anyone from developing the area. Our only focus is on objecting to any changes in land allocation. As long as development is clear and in line with the law, we would even support it. If Bakrieland develops the area as an ecotourism area or environmental education center, we'll give our support," Purnawan said.
AMPLMR sent a petition against the shift in land allocation to officials in Jakarta.
The alliance, supported by 14 NGOs in the Greater Malang area, asked the National Commission on Human Rights to conduct an investigation into forest destruction by developers, on the grounds access to natural environment is a basic human right.
It also urged the Malang mayor to obey Ordinance No. 7/2001 on spatial planning, which AMPLMR deemed had been violated.
The petition asks the President to take strict action against officials who cause environmental destruction.
AMPLMR later asked Walhi chief Chalid to send the petition to 18 individuals deemed responsible for the issue.
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