Shale Boom Helps US Achieve Largest CO2 Reductions in the World

According to a study conducted by the International Energy Agency (IEA), the United States has experienced the largest reduction [of emissions] of all countries or regions since 2006, decreasing greenhouse gas emissions by an impressive 7.7 percent. Economic slowdown and sharp reductions in electric power production contributed to this accomplishment. However, the environmental benefits of natural gas from shale, and the low-priced gas the boom has caused in the past 12 months, played the most significant role. As the EIA recently stated natural gas prices as delivered to power plants were at a ten year low in April. Because natural gas is a cleaner fossil fuel than coal, and more manufacturing companies are relying on natural gas instead of coal, emission levels are dropping in the U.S.

Gas and coal both now maintain 32 percent of the electric power generation market, nearly ending coals 100 year reign of electricity markets. This finding is further exemplified when you consider that coal had 52 percent of the market in 2000 and 48 percent in 2008. Carbon emissions lowered last year to levels that have not been reached since 1996. Americas energy related carbon emissions fell roughly 7.5 percent during the first three months of 2012 compared to the same period in 2011. Furthermore, first quarter 2012 emissions are approximately 8.5 percent lower than the first quarter emissions of 2010.

Information from the Energy Information Administration (EIA) suggests that emissions in 2012 are declining at a rate that may fall below 1990 emission levels. Former secretary of the Pennsylvania Department of Environmental Protection John Hanger observed in a recent blog that the 1990 level of carbon emissions is an important measuring stick, as it is often used as a critical data point for judging progress in reducing a nations carbon emissions. During 2011, analysts believed that reducing U.S. carbon emissions to the recorded levels of 1990 was nearly impossible. Nevertheless, TAP Management and other domestic natural gas extractors are capitalizing on the benefits that shale production is providing local communities in the form of lower energy bills and immense economic growth.