HOW THE GAS-RESEARCH-INSTITUTE (GRI) HELPED TRANSFORM THE UNITED-STATES NATURAL-GAS INDUSTRY

In the 1970s, natural gas was thought to be ''a fuel with no future.'' To change this, the industry formed a research and development (R&D) arm called the Gas Research Institute (GRI). Since 1978, the GRI R&D program has resulted in 132 commercial products, processes, or techniques that have helped turn natural gas into ''the fuel of the future.'' In doing this, GRI achieved a project success rate of 30 percent-or over twice the US industry-wide average-and a benefit-to-cost ratio of at least seven to one. This success is widely credited to the use of the project appraisal methodology (PAM), a multiattribute, decision analytic scoring function and group advisory process. PAM can be credited with half of the benefits achieved. These benefits are at least $11 billion and as high as $132 billion.