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PEAK OIL

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Natural gas as an extension of the oil era<br />

Due to its chemical properties, natural gas is seen as a substitute for oil in many fields.<br />

Despite a high uncertainty about existing reserves, natural gas is expected to last longer than<br />

oil. Natural gas will therefore be one of the most important fossil fuels of the future and will<br />

have to replace oil to a considerable extent, at least for a transition phase. 113 Natural gas<br />

reserves are usually located near oil reserves, a fact that, first and foremost, leads to security<br />

policy challenges that are already present today, due to the geographical position of the<br />

"producer countries". 114<br />

As oil production decreases, similar technologies and infrastructures may initially be<br />

employed to expand the use of natural gas. Contrary to oil, natural gas cannot simply be<br />

shipped but must be transported as gas via a pipeline or, after compression or liquefaction<br />

(liquefied natural gas (LNG)), with special-purpose tankers. Pipeline systems, however,<br />

which currently carry the major part of natural gas produced to the consumers, are regionally<br />

restricted. Instead of one world market for natural gas there hence are, in fact, several<br />

regional markets with limited options for the diversification of supplier relationships, in<br />

addition to associated energy security challenges. The pipelines, favoured for transport of<br />

natural gas to the customer countries, do not only span countries and regions but frequently<br />

also political and economic alliances and cultural areas. Therefore, conflicts over routes,<br />

construction and the security of pipelines may gradually increase. This does not only concern<br />

the bypass of states and regions that are considered to be unsafe. States that will not be<br />

included in the economic development of the reserves or the construction of pipelines also<br />

have to be dealt with. 115<br />

As with oil, we can expect producer countries to try to occupy increasing value-added shares<br />

in the processing of natural gas –which, for example, comprises the conversion into liquid<br />

hydrocarbons (gas-to-liquids (GtL)) and the further use of natural gas as raw material for the<br />

chemical industry. At first, this may relativise the falling revenues and destabilising effects<br />

that producer countries may experience due to peak oil conditions. Equally, the current<br />

marked increase in the use of LNG technology which enables natural gas to be transported<br />

with tankers may result in new trade routes and new buyers of natural gas.<br />

Furthermore, there are substantial non-conventional deposits of natural gas. One of them is<br />

methane hydrate – a gaseous methane enclosed in an icelike compound – that lies in the<br />

seabed or in perma-frost soil. Under peak oil conditions, the use of these reserves will<br />

probably become more attractive commercially. The ecological risks and security policy<br />

113 According to information provided by the International Atomic Energy Agency (IAEA), natural gas will become the most important fossil energy source by 2080 with a<br />

share of more than 50%.<br />

114 Cf. Figure 1, p. 7<br />

115 The tensions between Germany, Russia and Poland over the construction of the Baltic Sea pipeline demonstrate the associated potential for conflict. Cf. also Chapter<br />

3.1.2. We also have to anticipate that even with routes through stable and safe regions, the infrastructure may be increasingly jeopardised by terrorists. Thus, the necessity<br />

for a geo-strategic stabilisation of larger regions may grow.<br />

42

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