Tomorrow, President Obama is expected to announce a plan to reduce the country’s greenhouse-gas emissions 17 percent below 2005 levels. That could present a huge opportunity for natural gas’ prospects globally.
The opportunity can be seen in two reports.
The International Energy Agency (IEA) says that natural gas will continue to increase its share of the global energy mix, growing at 2.4% per year between now and 2018. However, that projected growth rate is lower than the IEA’s forecast last year of 2.7%.
IEA’s transportation fuel, driven by abundant supplies as well as concerns about oil dependency and air pollution, once the dearth of fueling infrastructure is addressed.sees gas emerging as a significant heavy-duty
- Non-conventional production will remain a North American phenomenon in the medium term. The United States alone represents over one-fifth of the global increase in gas production, benefiting from technological developments and cost-efficient field services. Exploration in other regions continues, but is hindered by geology, infrastructure and environmental constraints as well as lack of social acceptance.
- Natural gas plays a major role in addressing air quality concerns in China. China will account for 30% of the growth of global gas demand. Despite the country’s impressive progress on domestic production, this still puts China on a path of increasing import dependency: In the next five years, China absorbs the entire production increase from Central Asia as well as one-third of the global increase in LNG [liquid natural gas] supply.
- The tightness of LNG supply enables some recovery of Russian exports to Europe. Nevertheless, in the longer term, Russia will be able to maintain its premier position in the world of gas only by developing the resources and infrastructure for large-scale Asian exports.