Thursday, April 11, 2019

Cheaper than the utility of liquid fuels?

Moody’s: Ultra Low Permian Gas Prices Weigh On Oil Company Earnings

If capital equipment were cheap enough, then there is a narrow window in which natural gas can profitably feed negative energy liquid fuel production.  A few of those wells will be both remote and gas plentiful that a portable liquid fuel generator becomes a viable transport service.

That is where government research needs to be, on the margin where pilot projects can be marginally expensed.  Natural gas provide both energy for alcohol fermentation, energy for algae reactors, energy and material  for fertilizer production and  plastics (plastics are a long temr carbon sequester).

Let big industry ship natural gas for fuel.  Government should marginally subsidize the other pilot conversion projects. Focus on pilot production always, the transition engineering.

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