Natural gas is a mixture of natural gaseous hydrocarbons, mainly methane, and smaller amounts of higher alkanes. Low levels of trace gases such as carbon dioxide, nitrogen, and hydrogen sulfide are common. Natural gas is a fossil energy source, which formed beneath the Earth’s surface. There are many compounds in natural gas. Methane is the largest component of natural gas. It’s a compound that has one carbon atom, and four hydrogen atoms (CH 4). Natural gas is made up of a mix of gases rich in hydrocarbons. All of these gases, including methane, carbon dioxide, and nitrogen, are found naturally in the atmosphere. The earth’s natural gas reserves can be found deep within the earth, near solid and liquid hydrocarbons bed like crude oil and coal. It is used as a fuel, but not in its purest form. Natural gas is processed into many by-products, such as propane, butane, and carbon dioxide. These can then be used to make other products.
A fire broke out in a Texas facility that took natural gasoline from the US shale basins and chilled it into a liquid before shipping it overseas. The fire was put out in about 40 minutes. It was not reported that anyone was hurt. However, it is still being felt across Europe and Asia three weeks later. Natural gasoline is currently the most popular commodity in the world. It is a major driver of global inflation. The price spikes of natural gas have been quite extreme by today’s market standards. They have risen 700% in Europe over the past year, pushing Europe to the brink. It is at the core of an era of rising confrontation between the great power, one so intense, that plans to combat climate change in capitals across the West are being pushed to the sidelines.
Natural gas is now the fuel that shapes geopolitics more than oil. There isn’t enough. The war in Ukraine, which took out a significant portion of the supply, is what has catalyzed the gas crisis to a new height. Russia is cutting down on its pipeline deliveries to Europe. Russia says that it does not want to stop buying from Moscow. As countries rush to secure scarce cargoes, the scramble to fill this gap is becoming a global stampede.
The New Oil?
Germany warns of a Lehman Brothers-style crash if gas supplies run dry. Europe’s economic powerhouse faces the terrifying prospect of businesses and consumers running out of money. The Nord Stream pipeline that transports Russian gas to Germany will be closed for ten days on July 11. It is becoming increasingly doubtful that Moscow will reopen the Nord Stream pipeline. Leaders of the Group of Seven are looking for ways to decrease Russia’s gas earnings. These gas earnings finance the invasion of Ukraine and support new LNG investment. Clearview Energy Partners LLC Managing Director Kevin Book said, “This 1970s natural gas.” Based in Washington, the firm claims this is the 1970s natural gas. It is becoming increasingly obvious how vital gas plays in modern economies and the importance of a reliable, consistent supply.”