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AGA

 7/13/2009 

AGA Contacts:
Jennifer O’Shea, 202-824-7023
Jake Rubin, 202-824-7027

 Study Reports “Direct Use” of Natural Gas Saves Energy Costs, Reduces Greenhouse Gas Emissions   

 
   

Washington, DC –The American Gas Association (AGA) today called attention to a recent study by the Gas Technology Institute that reports the increased “direct use” of natural gas in homes and businesses will reduce energy consumption, consumer energy costs and national CO2 emissions.  Direct use refers to using natural gas in a residential or commercial capacity such as space heating, water heating, cooking and clothes drying. 

The study, “Validation of Direct Natural Gas Use to Reduce CO2 Emissions,” found that when a societal subsidy such as a rebate or a tax credit is put in place to encourage the use of natural gas appliances, significant savings in energy costs, CO2 emissions, energy use, and electricity use can be achieved.
 
“Natural gas is the cleanest burning of all fossil fuels, and its delivery from the source of production to the site of end use is extremely efficient and environmentally friendly,” said David Parker, president and CEO of AGA.  “This study affirms that subsidies that incentivize consumers to use natural gas directly in their homes and businesses result in major cost savings, while lowering carbon output.”

When compared to the Energy Information Administration’s (EIA) 2008 Annual Energy Outlook (AEO), societal subsidies would provide the following benefits by 2030:

  •  1.9 Quads energy savings per year (enough energy to heat 35 million American homes for a year)
  • 96 million metric tons CO2 emission reduction per year (equivalent to taking 16 million cars off the road)
  •  $213 billion cumulative consumer savings

Notably, the benefits derived from subsidies to increase the direct use of natural gas by 2030 significantly exceed comparable subsidies to electric end-use technologies. 

“Our country is striving to find an affordable energy solution for future generations.  Not only is natural gas abundant, but also the direct use of natural gas outshines all other applications in terms of cost and environmental footprint.  The evidence clearly shows that natural gas is a win for consumers and should be a major player the U.S. energy equation,” said Parker.

View the full report here.

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The American Gas Association, founded in 1918, represents more than 200 local energy companies that deliver clean natural gas throughout the United States. There are more than 71 million residential, commercial and industrial natural gas customers in the U.S., of which 94 percent — over 68 million customers — receive their gas from AGA members. Today, natural gas meets almost one-fourth of the United States' energy needs.

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