Significant new investment will be required in all links of the global gas value chain as demand rises around the world and new, remote sources compete for customers. Until that market matures, liquefied natural gas (LNG) will bridge the gap. So says a new study by Wood Mackenzie of Edinburgh, Scotland. Completed for the National Iranian Oil Co., the study will help NIOC and other members of the Gas Exporting Countries Forum, a new group formed to identify growth areas and opportunities in the increasingly global gas market. The study concludes that world gas demand will double during the next 30 years, helped by the spread of gas-fired power-generation capacity in all regions. Growth is expected in traditional areas such as North America and Europe, as well as more rapid expansion in Asia, Africa and the Middle East. Increasingly, that gas will have to be supplied from remote sources. Government liberalization policies and new technologies such as gas-to-liquids (GTL) are helping to make that a reality. There will be strong competition for customers among all the new gas players-the majors especially are now focusing more on gas projects. However, WoodMac cautions, it is unlikely that all the proposed gas-development projects will obtain sales contracts, and a potential oversupply of gas may exist in the short-term. Some projects may be deferred; others may be canceled. -Leslie Haines
Recommended Reading
On The Shelf: Strawn Wells an Independent Paradise or Graveyard?
2024-10-21 - Operators can’t depend on traditional solutions to succeed on the Eastern Shelf, where drilling horizontal Strawn wells has been a decade-long iterative process.
Beyond Energy: EnergyNet Expands Marketplace For Land, Real Assets
2024-09-03 - A pioneer in facilitating online oil and gas A&D transactions, EnergyNet is expanding its reach into surface land, renewables and other asset classes.
FTC Oks Chevron-Hess Deal, Bans John Hess from Board
2024-09-30 - Federal regulators signed off on a blockbuster tie-up between Chevron and Hess Corp. but banned CEO John Hess from sitting on the Chevron board.
Allied Resources Acquires Kansas Acreage, Plans Eight Well Program
2024-08-22 - Allied Resource Partners said it is processing 3D seismic survey data for a field in Grove County, Kansas.
Quantum Buys Rockies E&P Caerus Oil and Gas for $1.8B
2024-08-19 - Private equity firm Quantum Capital Group closed an acquisition of Caerus Oil and Gas. Quantum is splitting Caerus’ assets in Colorado and Utah between two portfolio companies.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.