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The role of natural gas as a primary energy source globally is growing rapidly. Over the fiveyear period through 2005, the use of natural gas as primary feedstock for the manufacture of chemicals and petrochemicals is also expected to make some rapid advances. Resource availability, cost and environmental considerations all indicate strong reliance on natural gas in industrial applications and electricity generation. Natural gas is also replacing other traditional fuels in residential, commercial and transportation end uses as well. Therefore natural gas offers the unique opportunity of making a significant contribution to the global program to reduce reliance on high carbon content fuels and thus facilitate compliance to international agreements. The study will therefore be useful to marketing managers, strategic planners, forecasters, new product and business developers, decision makers in the chemical, petroleum and energy industries as well as government agencies, venture capitalists, and those involved in research and development work worldwide.
This paper assesses and evaluates the global demand and utilization of natural gas in the chemical and energy production markets as well as the near term options for its production to meet the forecasted demand. The global marketed supply of natural gas is presented and production of natural gas by region/country, by source (offshore and onshore) and the reserves/production ratio is also discussed. International aspects of natural gas demand are also considered in this paper including forecasts for the 2005-2025 time frame. The effects of foreign and U.S. investment and technology by country and/or region are quantified. Major overseas companies involved in the natural gas business in processing, delivery and other activities are also assessed.
This paper begins with an overview of the natural gas industry. The overview describes the importance of the natural gas industry in relation to the overall global economy including a brief history and important indications for the industry.
The study then goes on to analyze the structure of the natural gas industry and competitive aspects including the driving forces of the industry. Important strategies for staying competitive and important shifts in the industry are assessed. Trade practices of the natural gas industry and the impact of natural gas on the petroleum and power industries are discussed.
This study also includes projections for natural gas production. The largest increase in production is projected for the Middle East—from 8.3 trillion cubic feet (Tcf) in 2001 to 18.8 Tcf in 2025. The smallest increase is projected for the industrialized countries—from 39.3 trillion cubic feet(Tcf) in 2001 to 46.8 Tcf in 2025, an average increase of 0.7 percent per year over the forecast period. Natural gas processing is increasingly becoming a major part of the world natural gas business, as more countries with associated gas look for more economic ways of monetising this resource. This study also presents data on global natural demand by type of processing including natural gas liquids. Some interesting figures of global natural gas reserves and global/regional natural gas consumption are also included in the end of this paper.
Local officials are calling on Massachusetts Gov. Charlie Baker to require studies of health and safety risks before approving any new natural gas infrastructure. In separate letters, boards of health representing 100 communities including Salem, Gloucester, Marblehead, Methuen, and Essex raise myriad concerns about the state's reliance on natural gas as a fuel source. They've asked the state to create a public health campaign aimed at educating energy consumers about the possible dangers. Health officials cite studies suggesting a link between stovetop cooking using gas and high rates of childhood asthma and other respiratory ailments. Others note the increased air pollution from thousands of leaks along natural gas lines--not to mention the hazards of explosions and fires.
Abstract Natural gas has gone through an unprecedented roller coaster in 2000 and 2001 which among other things included the collapse of Enron, one of the biggest players in the field. Prices rocketed from $2 to over $10 and then declined to below $3 per Mscf. Yet, fluctuations notwithstanding, the "new" natural gas price is $3.00 to $3.50, both floor and ceiling. The floor, calculated by us, is set by full-cycle costs, which include potential reserves, discovery rates, proved reserves, the activation index by region and well decline rates. The price ceiling is set by liquid natural gas (LNG) imports and Arctic gas. Both require the $3.00 to $3.50 price range. The problem with a calculated average national equilibrium price of, for example, $3.25 gas is that it is made up of $1 to $10 fluctuations. Even when demand forces natural gas prices to the high levels that were observed in 2001, reservoir physics of the mature United States environment precludes a quick response. Thus, spikes of $10 gas cannot generate new domestic supply. In a number of our previous writings, we have suggested that the trend toward natural gas as the premium fuel in the near future is not reversible. The key and the excruciating problem is the transition. We examine in this paper a number of potential sources of natural gas, their limitations and potential. We also present a number of issues, which involve both national policy and rational business decision-making, to take the nation through the transition. Managing the transition to natural gas is critical to the well-being of the nation and, considering the position of the United States on energy markets, the rest of the world. We finally show in this paper a stark example of the enormous impact of energy supply interruptions on the employment history of the United States, a situation, which may be the harbinger of major future economic hardships if the transition to natural gas is not managed properly. Introduction At a time that energy has rightly been pushed to the fore in America, many politicians and media folks have decided to focus the nation's attention on idyllic 50-year (maybe) solutions, skipping over the excruciating transition all together. This is clearly irresponsible. Even worse is the frequent mention by environmental and social ideologues who point to wind or solar or even unnamed alternatives as solutions to our pressing national energy needs. Conservation, which has in many ways become a code word to rally the presumably pragmatist folks, often falls in the same category. We think that our ideas on natural gas are disruptive and revolutionary enough, for sure appropriate to address the immediate and 20- to 50-year energy needs of the country. This is the third in an annual series of papers on what we have called the natural gas revolution. It has become increasingly difficult to write an earth-shuttering article on the topic. Announcing a revolution is easy. Having to explain the details once your audience has accepted the notion or even joined the revolution can be a bit more tedious. Nevertheless, there are important, even crucial, details to be explored. Background Our original article, titled, Natural Gas: The Revolution is Coming, demonstrated an undeniable secular trend in the world toward natural gas, starting first with the United States, then the rest of the G7 countries (Canada, France, Germany, Italy, Japan and the United Kingdom), and then indeed the rest of the world. At that time, the list of countries "going gas" was already very long, including major pronouncements and real activities in Venezuela, Colombia, Brazil, Peru, Mexico, Saudi Arabia, China, Cyprus and Bangladesh. Today the list is even longer. Venezuela, with the second largest natural gas reserves in the Western Hemisphere, had just made a grand pronounce-ment that it would develop a natural gas industry and reserves using its domestic market as an impetus.
Today's natural gas producer faces a marketplace that bears little resemblance to the one in place a few years ago. The traditional natural gas industry allowed little flexibility and innovation. Today, the natural gas producer has a cornucopia of new economic and marketing challenges before him. Awareness of the new marketing opportunities in the industry allows the gas producer to convert these challenges into opportunities. The potential of the gas industry has never potential of the gas industry has never been better. Natural gas is increasing its value as one of the nation's main energy sources. Energy consumption in the U. S. in 1988 was higher than ever before and will continue to rise as the world economy continues to expand. (FIGURE I - U.S. ENERGY CONSUMPTION)
The importance of natural gas in supplying the country's energy needs will continue to grow also. The gas industry, a $30 billion a year business at the wellhead, and nearly $70 billion at the burner tip in 1988 will continue to increase in size and diversity. FIGURE II - TOTAL VALUE OF U.S. GAS INDUSTRY shows the value of natural gas operations in recent years at both the wellhead and burner tip. The natural gas industry will become more flexible in response to the evolving regulatory environment, and as gas garners an increasingly favorable image as the preferred fuel source. Natural gas' preferred fuel source. Natural gas' appeal in comparison to other fuels, lies in its domestic abundance, its efficiency as a fuel, and its good environmental record - an issue that will likely increase in importance during the 1990s. The Bush Administration's latest proposal, designed to increase the use of natural gas, is but one example of the planned importance of natural gas.
The natural gas producer must understand the full gamut of political, economic, marketing, and regulatory changes and their impact on the structure of the natural gas industry to take advantage of the opportunities. The gas industry is going through major changes. The present direction and impact of which can only be speculated. Yet nobody in the industry can afford to be complacent. Everyone, whether producer, pipeline, or consumer, must understand the structural changes to survive in the changing environment of the industry. The changes are potentially sweeping enough to completely restructure the industry of old and transform it into a new, highly integrated and competitive domestic energy supplier.
This presentation will go into the various factors of the marketplace important to the producer in selecting new sites for natural gas exploration, drilling, and development. Since so much of the market is still in a state of flux, a brief background of the events leading up to the present market conditions is also present market conditions is also provided. The structure of the natural provided. The structure of the natural gas industry is changing because of the evolving market conditions for energy products including natural gas. Staying products including natural gas. Staying on top of these changes and taking advantage of all the opportunities they provide is crucial to the producers' provide is crucial to the producers' success as a resource developer.