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natural gas or oil in most new industrial boiler facilities and all new power plants. The goal was to preserve natural gas for residential and commercial customers. Until the early 1980s, the notion of the imminent expiration of both US and world gas reserves remained; producers which had little interest in raising their production earlier had not invested heavily in new exploration, so predictions on the future of gas as an available source were pessimistic. Figure 10 shows a graphical history of natural gas reserves in both OECD and Non-OECD countries. It demonstrates how, from 1977 to 1981, the number of reserves failed to increase substantially, fueling fears of a permanent shortage. Some estimates predicted that the world would run out of accessible natural gas within 20 years. Figure 10. OECD and Non-OECD Natural Gas Reserves, 1975-1997.36 During this time, the Fuel Use Act virtually shut down the US installation of gas turbines. In an example of its effect on turbine purchases, orders for GE’s “Frame 7” turbine fell from 37 to 5 in the year following its passage.37 Although turbine manufacturers could not expect to produce many gas turbines for the US utility market, GE continued with R&D during this difficult period and shifted its focus to Europe.38 However, it should also be noted that the European Community 36 Sources: 1975-1996 International Petroleum Encyclopedia: Worldwide Oil and Gas at a Glance (Tulsa, OK: Pennwell Publishing Co.) various issues. 1997: “Worldwide look at Reserves and Production,” Oil and Gas Journal, Vol 93, No. 52 (December 25, 1996) pp. 44-45. Generally, http://www.eia.doe.gov/oiaf/ieo96/gas.html, 37 Richard Tabors and Thomas Lee, Energy Aftermath, Boston: Harvard Business School Press, 1990, p. 149. 38 Interview with Craig Tedmon, ABB. 22PDF Image | Energy RD Performance: Gas Turbine Case Study
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