Caterpillar 2013 Annual Report Download - page 24

CATERPILLAR INC. 2013 YEAR IN REVIEW
22
COMMON GROUND
The Golden Age
of Natural Gas
A Conversation with Jim Umpleby,
Group President
What is driving demand for energy resources and, in particular,
natural gas?
Global economic growth is driving signifi cant demand for commodities,
energy and infrastructure. Studies indicate that global energy demand
will increase 100 percent between 2000 and 2040. Although renewable
forms of energy, such as wind and solar, are growing rapidly in many
countries, fossil fuels such as oil, coal and natural gas are still expected
to meet 80 percent of the world’s energy needs in the year 2040. The
demand for natural gas is increasing rapidly due to abundant supply,
low cost and emissions.
What type of transformation is the natural gas industry undergoing?
We’re really coming into the golden age of natural gas, and the United
States is at the forefront of this transition. We expect natural gas to
play a larger role in the global energy mix during the coming decades.
Advances in technology, such as well stimulation and horizontal drilling,
have allowed oil and gas that were previously uneconomical to produce
to be brought to the market. These new technologies have allowed the
United States to become the leading producer of oil and gas in 2013.
The rapid increase in natural gas production has reduced natural gas
prices, offering a competitive advantage for the U.S. and is also creating
many opportunities for Caterpillar, our dealers and our customers.
What are some of the ways that Caterpillar customers are participating
in this transformation?
Caterpillar participates across a large portion of the natural gas value
chain. Our reciprocating engines are used for drilling and gas gathering
and our well stimulation pumps manufactured by our Black Horse joint
venture with Ariel Corporation are used for well servicing. Natural gas
pipelines around the world utilize Solar® gas turbines and centrifugal
gas compressors. Cat® machines are used to prepare drilling sites and
our pipelayers and other machines are used to construct pipelines. For
those residential consumers of natural gas in the U.S. and Western
Europe, there’s a very high probability that Cat® products were used
to produce or transmit the natural gas used in your homes.
How is technology helping us to realize the potential of natural gas?
Caterpillar is investing heavily in new technologies, including those that
bring natural gas to products and machines that have traditionally oper-
ated on diesel fuel. We’re working with a number of our customers – in
rail, marine and mining – to provide dual fuel engines that will burn both
natural gas and diesel. One can envision a future where locomotives,
mining trucks and some other machines use liquefi ed natural gas, creating
economic and environmental advantages for our customers. Caterpillar
is committed to being the leader in these technologies.
What part of your work with natural gas technology do you take
the most pride in?
Caterpillar employees and our dealers are proud to provide the products
and services that improve living standards around the world. Many in
the developing world still do not have access to reliable power in homes,
schools and hospitals. We’re very proud that we’re playing a vital role
in improving living conditions around the world.