President of Shell Gas & Power Discusses Energy Trends
Adarsh Das, MBA 1
Issue date: 2/7/05 Section: News
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When Jose Lima asked nearly forty Ross students if they knew what Liquefied Natural Gas (LNG) was, nearly all the Ross students present raised their hands. Jose Lima seemed slightly surprised, but then noted that after all he was speaking to members of the Energy Club.
A guest speaker for the Ross Energy Club on February 2, Jose Alberto Lima is the President of U.S. Shell Gas & Power LNG division Lima, a Brazilian who has worked for Shell in the U.K. and U.S.A. for nearly 15 years. He began with an informational video about the basics of the LNG industry. LNG is Natural Gas, cooled and liquefied to about 260th of its volume as a gas, without any pressurization. It is the same fuel that goes into many of our homes as heating and cooking fuel, and appears on our monthly utility energy bills.
Lima focused his presentation on two distinct but related ideas. First, he pointed out trends in worldwide energy markets which if left unaddressed would result in supply side problems for the U.S. household and power sectors within five years. Second, Lima presented a clear argument for LNG as a highly appropriate fuel source to meet these requirements in the short term. He insisted that if the capital investments required to create LNG handling infrastructure are not in the short term, energy shortages could be acute. Finally, Lima also made a case for why Shell is 'able, willing, and capable' of helping with the infrastructure required to make this change happen.
Lima mentioned that natural gas is an easy-burning fuel that results in little pollution compared to coal. He pointed out that in recent years electric power utilities have increasingly relied on natural gas burning power plants to generate peak-demand power. According to Lima, this rise in power generation using natural gas has been the main driving force behind the steady rising trend demand and price for natural gas. In 2003, the U.S. consumed about 125 million metric tonnes (mmt) of natural gas per year, about 24% of its overall energy consumption. Given present trends, natural gas requirements could rise to 290 mmt in 2013, with a shortfall of up to 68 million metric tones per year.
A guest speaker for the Ross Energy Club on February 2, Jose Alberto Lima is the President of U.S. Shell Gas & Power LNG division Lima, a Brazilian who has worked for Shell in the U.K. and U.S.A. for nearly 15 years. He began with an informational video about the basics of the LNG industry. LNG is Natural Gas, cooled and liquefied to about 260th of its volume as a gas, without any pressurization. It is the same fuel that goes into many of our homes as heating and cooking fuel, and appears on our monthly utility energy bills.
Lima focused his presentation on two distinct but related ideas. First, he pointed out trends in worldwide energy markets which if left unaddressed would result in supply side problems for the U.S. household and power sectors within five years. Second, Lima presented a clear argument for LNG as a highly appropriate fuel source to meet these requirements in the short term. He insisted that if the capital investments required to create LNG handling infrastructure are not in the short term, energy shortages could be acute. Finally, Lima also made a case for why Shell is 'able, willing, and capable' of helping with the infrastructure required to make this change happen.
Lima mentioned that natural gas is an easy-burning fuel that results in little pollution compared to coal. He pointed out that in recent years electric power utilities have increasingly relied on natural gas burning power plants to generate peak-demand power. According to Lima, this rise in power generation using natural gas has been the main driving force behind the steady rising trend demand and price for natural gas. In 2003, the U.S. consumed about 125 million metric tonnes (mmt) of natural gas per year, about 24% of its overall energy consumption. Given present trends, natural gas requirements could rise to 290 mmt in 2013, with a shortfall of up to 68 million metric tones per year.
