Natural Gas Long-Term outlook is bright
Posted: Thu Nov 01, 2018 1:23 pm
U.S. natural gas goes global . Forbes . Opinion.
As much as demand for fossil fuel alternatives is increasing, demand for natural gas is increasing more. Gas dominates the American energy scene and will continue to grow faster than all other energy sources in the United States. At prices less than $3/MMBtu, natural gas is undercutting nuclear and coal. Renewables can only compete with huge subsidies and state mandates. Besides, renewables need gas fired power plants to load-follow them so gas loves wind and solar.
By 2025, America will have to double gas production to meet demand. Many sweet spots will be played out by then, so prices may have to rise above $4 or $5/MBtu to incentivize new production. The industry’s savior may well be connecting to the global market. LNG terminal planning and construction in the United States has skyrocketed beginning in 2010. This expansion explains why the EIA projects that U.S. LNG capacity will rise from about 14 billion cubic meters (bcm or 400 billion cubic feet) per year to about 110 bcm (3,000 bcf) by 2020. Ultimately, the goal is 200 bcm/year (5,600 bcf/year) by 2030.
Read: https://www.forbes.com/sites/jamesconca ... ddde377d64
As much as demand for fossil fuel alternatives is increasing, demand for natural gas is increasing more. Gas dominates the American energy scene and will continue to grow faster than all other energy sources in the United States. At prices less than $3/MMBtu, natural gas is undercutting nuclear and coal. Renewables can only compete with huge subsidies and state mandates. Besides, renewables need gas fired power plants to load-follow them so gas loves wind and solar.
By 2025, America will have to double gas production to meet demand. Many sweet spots will be played out by then, so prices may have to rise above $4 or $5/MBtu to incentivize new production. The industry’s savior may well be connecting to the global market. LNG terminal planning and construction in the United States has skyrocketed beginning in 2010. This expansion explains why the EIA projects that U.S. LNG capacity will rise from about 14 billion cubic meters (bcm or 400 billion cubic feet) per year to about 110 bcm (3,000 bcf) by 2020. Ultimately, the goal is 200 bcm/year (5,600 bcf/year) by 2030.
Read: https://www.forbes.com/sites/jamesconca ... ddde377d64