No Shortage of (Natural) Gas

I have a vivid imagination, but, in a routine and functional sense, folks like that are out there.  The idea of course is to utilize the most efficient fuel source based on the envisioned heating requirements, current fuel supplies on hand, current gas vs. oil pricing, and the predicted trends for both.  The goal is to save money, and sometimes lots of it.  I’m sure as a generalization, the bigger the facility, the wider the price swings, and the wiser the fuel planning, the less dollars are literally burned.

That’s my introduction to the general concept of dual-fuel boilers, which is proving to be a potentially timely topic.  In the news throughout the last several months, including very recently, is the story of how the U.S. actually now has a surplus of natural gas, which has been steadily increasing over the last year.  It’s kind of hard to believe, considering the $147 per barrel prices for crude oil experienced in July 2008.  But natural gas is a different fuel entirely, and that’s the whole point.

Fuel companies, including Exxon-Mobil, have ramped up their investment in subsidiaries that extract natural gas from shale formations and the natural seams in coal fields.  They’ve also been buying up acreage where these shale formations and coal deposits are located.  This has contributed to record natural gas surpluses, particularly in the central United States.  Pursuit of these technologies, combined with the world-wide recession, have experts predicting a nominal 10% surplus in global natural gas supplies for the next several years.

This is a good example of how market place trends can drive oil vs. natural gas fuel decisions, and why having dual-fuel boilers is a great option for many facilities managers.  Sometimes the trends in the fuel industry are not nearly as strategic or impactful as this resurgence in natural gas extraction.  In years past, a major snow storm, a broken pipeline, or the daily political dynamics overseas, have all created peaks and valleys in oil vs. natural gas fuel pricing.  The good fuel manager at a large facility is ready to adjust, as needed.

If I can’t find my imaginary fuel guru hiding in the bowels of a Norman Rockwell mechanical room somewhere that’s worthy of a video production, we’ll at least provide more information soon on dual-fuel boilers.  Right now I’m guessing such a fuel guru is burning natural gas in his or her boiler plant!