Monday, March 14, 2005

Oil expert calls for LNG

Joe Sparano, president of the Western States Petroleum Association, knows a thing or two about meeting California's energy needs. Therefore, it is no surprise he's calling for the construction of terminals to receive liquefied natural gas:

Nearly all of our state's current and future electricity generating plants are, or will be, powered by clean-burning natural gas. In addition, consumers rely on natural gas in their homes for heating, cooking and hot water. Natural gas also is a growing additional source of clean fuel for thousands of buses and other commercial vehicles.

As a result, the demand for natural gas in California and across the western United States is increasing every year. Yet, California produces less than one-fifth of what it uses -- a mere 16 percent of the natural gas consumed in the state. Increased demand has led to dramatically higher natural gas prices that have shown up in higher utility bills. LNG is an important option to increase natural gas supplies for our state. LNG is simply natural gas converted into a liquid form so that it can be economically transported from places where natural gas supplies are plentiful to where natural gas is needed to meet energy demand. Increasing supplies of LNG and natural gas would help keep utility bills down for businesses and consumers.