Natural Gas: A Growing Resource

Enabling a New Energy Paradigm

The development of new extraction techniques such as well stimulation and horizontal drilling has meant that shale gas, which was previously uneconomical to produce, can be brought to market. In 2013, surging energy output made headlines as the U.S. Energy Information Administration announced the nation was on a path to be the world’s largest producer of oil and gas within a year. This remarkable turn of events unfolded in just a decade as the exploration of shale-rock formations grew in nearly every region of the U.S., from Texas and North Dakota to the Midwest and Northeast.

This rapid increase in production, made possible by improved techniques, has resulted in historically low natural gas prices in the U.S. Because of plentiful, low-cost natural gas and the existing infrastructure of pipelines, compressor stations and other equipment, it is expected that natural gas will power the vast majority of new electric generation capacity to be installed in the U.S. during the next 25 years.

Caterpillar’s natural gas solutions range across the entire value chain, and our product offering continues to grow. Caterpillar is the market leader for supplying power for land drilling and for providing both engines and transmissions for use on hydraulic well stimulation rigs. Caterpillar recently created a joint venture with Ariel Corporation called Black Horse LLC to provide well-service pressure-pumping products. These pumps are being sold and serviced through the Cat® dealer network. Black Horse brings our energy production customers a complete pressure-pumping solution, backed by the global parts and service support of our Cat dealers.

For gas production, compression and transmission, Caterpillar manufactures Solar® gas turbines and compressors, and Cat® reciprocating engines. There are thousands of Cat reciprocating engine generator sets and Solar gas turbine generator sets converting natural gas into electricity around the world.