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Topaz Resources Agrees With MIT Report Which Supports Importance of Natural Gas

^{Published on 2010-07-01 03:20:54 - Market Wire}
 

DENTON, TX--(Marketwire - July 1, 2010) - Topaz Resources, Inc. (OTCBB: [ TOPZ ]), an independent oil and gas company ("Topaz" or the "Company"), today reported that the importance of natural gas has been detailed in a report released June 25th by MIT called "[ The Future of Natural Gas ]" and further commented on by Forbes "The Energy Source" on the same date. It is one of a series of reports by MIT's Energy Initiative, headed by Ernest Moniz, an MIT physics professor and former Under Secretary of the Department of Energy. In the past, the group has[ produced reports ] on coal, nuclear power, and geothermal power.

It is hard to argue that there is a fuel or energy technology more important to the future economy of the United States and maybe the world, than natural gas. There is a lot of it in the U.S., it is cleaner than the two biggest energy sources, coal (for electricity) and oil (for transportation), and it has the potential to at least partially displace both of them.

The 83-page report does a good job of laying out the issues, hopes and problems surrounding natural gas. Natural gas is already important -- it provides 21% of the country's electricity, it sets the price of electricity in most regions of the country, and it is relied upon heavily by industry.

Its share of the electricity market is poised to grow substantially as coal plants are shut down in the face of tightening emissions requirements. If Washington decides to limit carbon either by capping it or taxing it, gas will become even more important. It is far cleaner than coal and it emits 45% less carbon than coal. Natural gas will have a harder time replacing oil as a transportation fuel, but there are movements spearheaded by [ T. Boone Pickens ] and by some lawmakers to promote burning it in the engines of cars and trucks. It also will be able to power cars indirectly, as an electricity source for electric vehicles starting to arrive in showrooms.

Hopes are high for natural gas in part because there is so much of it. The report estimates there are 16,200 trillion cubic feet (Tcf) of recoverable reserves worldwide, which is 150 times current annual global consumption. So-called unconventional gas, which has been discovered in huge amounts in shale formations in the U.S. and elsewhere, will become a big factor. The report suggests there are 650 Tcf of shale gas in the U.S.

As a way to reduce carbon dioxide emissions in the short and medium turn, there is nothing cheaper or faster. But low electricity prices make it more difficult for truly low carbon energy sources, like nuclear, solar, and wind, to compete.

This is a conundrum the report addresses: "It would be a significant error of policy to crowd out the development of other, currently more costly technologies because of the new assessment of gas supply. Conversely, it would also be a mistake to encourage, via policy and long-term subsidy, more costly technologies to crowd out natural gas in the short to medium term, as this could significantly increase the cost of CO2 reduction."

While substituting natural gas for coal could help reduce quickly the nation's carbon dioxide emissions, eventually even the carbon dioxide produced by natural gas power plants may need to be captured somehow, a proposition that is sure to be extraordinarily expensive. It is seen, therefore, as a bridge fuel, one that takes us from coal and oil to some mix of carbon-free energy in the future. And given the huge supplies of the fuel and its versatility, it looks like natural gas could be a long and sturdy bridge, and one that might not break the bank.

About Topaz Resources

Topaz Resources is an independent oil and gas company focusing on production, acquisitions and developmental drilling opportunities within proven producing areas of north, central and west Texas. The Company's website can be found at [ www.topazresourcesinc.com ].

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