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Natural Gas to Replace Oil in Australia?

By jennifer
April 30, 2008

The recent prediction by the head of Caltex Australia that the price of oil may very well double the already record highs for crude, have only heightened concerns about the security of Australia's future fuel supplies. The Federal Government, for instance, has launched a national energy security assessment.

As oil production in Australian fields declines, the Government has also sought and won approval under the United Nations Convention on the law of the sea, to expand its search for oil offshore by an area equivalent to five times the size of France.

But Federal Resources Minister Martin Ferguson agrees that unless there is soon a "eureka oil strike", Australia must find a new fuel alternative with sufficient reserves to power a vast and vital national car and transport fleet.

But there are those who say there's an obvious solution to the fuel crisis right under our collective nose, a solution that could cut fuel bills by up to 60 per cent: natural gas.

ABC - The 7.30 Report: Natural gas: the future of fuel?

Mercedes is offering the new Sprinter transporter with natural-gas drive, with operating costs 30 per cent lower than comparable diesel-engined versions.

Drive.com.au: Mercedes van with natural-gas drive

Good Causes

Comments

  1. UCG - way of the future. But for a warmer world it will make. UCG will be used increasingly for nitrogen fertilizer manufacture as well to beef up global food security (if you could say that is what we currently have).

    Invest in fertilizer, UCG and uranium ... and prepare for more expensive everything ... the cheap energy is gone, which means cheap everything is gone, including money ...

  2. Interesting read abstract on LPG

    "Accession number;05A0651566
    Title;LPG Supply Outlook
    Author;KANEKO HIROSHI(Tokyo Gas Co., Ltd.)
    Journal Title;Journal of the Japan Institute of Energy
    Journal Code:F0217A
    ISSN:0916-8753
    VOL.84;NO.7;PAGE.516-531(2005)
    Figure&Table&Reference;FIG.22, TBL.10, REF.25
    Pub. Country;Japan
    Language;Japanese
    Abstract;Global demand for LPG has grown at about 2.9%/year in the past 10 years, or roughly two times faster than demand for petroleum. Total global LPG demand in 2003 was 207 million tones. Demand for LPG in Japan has been slightly smaller to 18.05 million tones. LPG production from NGL in natural gas field and oil field accounted for about 60% of the total supplies and refineries typically produced about 40% consistently. As LNG trade is expanding, removing the LPG from the LNG stream is going to be important source. Beside gas producing countries as Saudi Arabia have expanded demand rapidly for LPG as petroleum chemical feedstock. According to the statistics of USGS (United States Geological Survey) and the United Nations, the world resources of LPG are estimated 22.1 billion tones and the reserves of LPG are estimated 5.9 billion tones. The resources of LPG are 11% of oil and same percentages of natural gas. The reserves of LPG are 7.7% of oil and 8.5% of natural gas. It is very difficult that DME would be a substitute fuel of LPG as domestic use in Japan because it has lower calorific value. LPG synthesis research from natural gas is progressing in Japan. The research would be completed at least 4 years. The world LPG supply would be tight till 2010 as rapid growing demand and slower supply capability growth. (author abst.)"
    http://sciencelinks.jp/j-east/article/200516/000020051605A0651566.php

    So if we really start using LPG and its use grows by 7% instead of 2.9% then the amount we use will double every 10 years.

    2018 - 414 million tons
    2028 - 828 million tons
    2038 - 1656 million tons

    How much do we have? By 2038 we could be using 1.6 billion tons per year - how long would the 22 billion tons that it is estimated we have last at this rate of consumption. Instead of Peak Oil we have Peak LPG.
    (BTW I picked 7% because it is easy to work with)

    Some of the current LPG supply is a byproduct of producing petrol so when the oil goes so does this supply of LPG.

    Everything you wanted to know about LPG is here:

    http://www.aip.com.au/industry/fact_liquid_gas.htm

  3. Eyrie - "Sit a car out in the sun and you'll get above that in Australia in summer."

    But not if you design the battery box properly.

  4. CNG versus LPG ?

    Engineer calls for more use of LPG
    AAP, April 23, 2008

    “More Australian motorists should be encouraged to convert their cars to run on LPG ahead of a looming fuel supply crunch, a leading automotive engineer says.
    More Australian motorists should be encouraged to convert their cars to run on LPG ahead of a looming fuel supply crunch, leading automotive engineer Laurie Sparke says.
    Dr Sparke, now retired but formerly Holden's director of innovation, said the potential for significant savings in greenhouse gas emissions also made LPG the best alternative fuel for Australia in the immediate future”.

    http://www.drive.com.au/Editorial/ArticleDetail.aspx?ArticleId=51749

  5. Louis - "oil is needed to provide the thin film of hydrocarbon to lubricate the bearings."

    No really????? What the hell is your point? Do you imagine that the 83 million barrels per day we currently use is for lubricating oil?

    Natural gas is overcooked oil and yes it will run out one day however it is an ideal transition fuel. Used sparingly in a renewable mix it will also last a lot longer than the primary fuel. We should be treating this ancient sunlight as the precious resource that it is and preserving it for as long as possible. Oil is such a wonderful mix of different hydrocarbons it is a real shame that we just burn it.

  6. Valence aint it. 50 deg C max temperature in service. Promising but not yet.

    Sit a car out in the sun and you'll get above that in Australia in summer.

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