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Over the last decade, innovations in horizontal drilling, hydraulic fracturing, and well pad efficiency by independent producers and service companies have catalyzed domestic resource development, and with the addition of the integrated majors into the unconventional market, the U.S. has become the world’s largest producer of natural gas and oil. Let that sink in for a second; this was unimaginable five years ago. That said, resource recovery rates of product in place are anemically low, and continued innovation will not only improve production cost but will further provide energy security and domestic growth opportunities. Shale gas is already contributing an annual additive benefit of $125 Billion to the U.S. economy. Most of the growth to date has been in coal displacement for power generation with some in the chemical and industrial sectors, while exports to Mexico have considerably outstripped LNG exports.
So what are we going to do with all this gas? While some major investments in chemical markets are being made (e.g. Shell’s ethane cracker in PA), others have failed to reach final investment decision as energy prices have eroded and arbitrages have tightened. The significant capital risk over time associated with large and mega scale projects is keeping investment on the sideline in many cases. This trend leads to other questions and considerations: Does scale always matter? How can innovation change the current model? Can distributed solutions become economical? Do incumbents need to adapt, or who may disrupt?
Environment will matter more and more. How does natural gas fit into a low carbon energy economy? Pundits think that fossil is the new “f” word regardless of how quickly the U.S. is reducing carbon on the heels of gas to power. Some suggest natural gas as a bridge fuel; others think this is a much more than a bridge.
Gas Technology Institute plays an important role in the evolution of unconventional oil and gas development, as well as the higher value uses of hydrocarbons. GTI’s Senior Vice President – Research and Technology Development, Eddie Johnston, will share thoughts regarding innovations to increase productivity and how the U.S. could get more value from its expansive resources than just creating power and exporting it.
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 As the Senior Vice President of Research and Technology Development, Eddie Johnston leads research initiatives for Gas Technology Institute (GTI), driving integrated responses to the energy industry’s most pressing needs. He oversees the organization’s entire research staff—leading efforts across unconventional supply, energy conversion, natural gas delivery, and end use market sectors with offerings at every phase of the technology development cycle. GTI’s innovative technologies make energy resources economically viable, minimize environmental footprint, and maximize market impact to reduce costs for consumers and enable our customers’ continued success.
Johnston joined the company in July 2007 as the Managing Director of the Infrastructure sector. Prior to that, he worked for Atmos Energy Corporation for 15 years, and also worked hands-on in the off-shore oil industry with Rowan Companies for nearly a decade. Johnston earned a B.S. degree in mechanical engineering from Mississippi State University and is an honors graduate from the University of Chicago’s Booth School of Business. He serves on a number of Boards of Directors and Advisory Boards for tech start-ups, advocacy groups, and research organizations across the energy value chain.
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