ABSTRACT This presentation describes the challenges facing gas producers and reviews technology enhancements that ExxonMobil and industry are developing to improve the economics of transporting gas from the field to market. Included is an update on the progress and installation of X120 (Grade 825) high strength steel linepipe, which when fully utilized will enable gas producers to realize savings of 5 - 15% in the total cost of long-distance gas transmission pipelines. Also introduced are ExxonMobil efforts in the areas of LNG and PLNG.
INTRODUCTION A fundamental lesson people learn early in life is the law of supply and demand and that anything of value comes with a cost. If people want something that is abundant and readily available, it is inexpensive and easy to acquire. However, if the object or commodity is scarce, it commands a higher price.
Oil is an example of a commodity that is limited in supply by nature, but which has a very large demand in every corner of the world regardless of economic status. In such a case of limited supply and very high demand, the law of supply and demand would predict that the price of oil should be quite high. However, when the price of oil gets too high, demand drops, economies begin to slow, and world development is adversely impacted. Hence the constant global effort to maintain moderate prices by seeking additional oil supplies or by finding alternate energy sources such that the world demand can be met, growth can occur, and profitability maintained.
This paper will discuss the growing demand around the world for one of those alternatives, natural gas, and will discuss some of the innovative technologies being pursued by ExxonMobil to bring that gas to the global marketplace.