As the industry confronts important questions such as whether natural gas can truly be certified as “green,” NGI takes a deep dive into the fuel's prospects this year and beyond. What’s the outlook for natural gas prices this year? How bright is the future for LNG growth in North America and overseas?
In this special edition compiled by NGI’s Thought Leaders, learn what energy experts think about the future for responsibly produced gas, the outlook for the upstream and midstream sectors, the supply/demand equation and Mexico’s energy future.
The Special Edition Includes...
- 36 pages full of charts, insights, and forecasts
- Are buyers ready to pay more for certified natural gas?
- The 2022 outlook for global LNG markets
- How Permian E&Ps are gaining in efficiencies and cutting costs
- Who says oil will hit $100 this year
- How Mexico natural gas infrastructure continues to expand
- The outlook for Mexico’s energy sector this year
- How inflation and supply chain concerns may linger through the year
REPORT HIGHLIGHTS
The Energy Information Administration (EIA), along with
many top energy analysts, expect to see U.S. natural gas prices
generally hold steady through this year, with liquefied natural
gas (LNG) exports likely to face more volatility as European
and Asian markets jockey for deliveries.
“That combination of forces is going to have an impact,”
the American Petroleum Institute’s (API) Frank Macchiarola,
senior vice president of policy, economics and regulatory affairs, told NGI. “Natural gas has to be part of the solution to
addressing the climate challenge."
The challenges to funding oil and gas today include
price volatility, changing government regulations, diverging
long-term demand scenarios and the various criteria for environmental, social and governance (ESG) initiatives, according
to IHS Markit. These factors have raised the cost of capital
for long-cycle projects and made investment decisions more
complex.
The world’s LNG terminals are running near capacity
and operational issues at some of them could find Asian buyers increasingly back in the spot market. Europe will have to
continue competing for LNG cargoes with Asia as the narrow
spread between JKM and TTF suggests.
“Any way we look at it, global energy is going up,”
said Enbridge Inc. CEO Al Monaco during the company’s
annual investor day last month. “Demand is rising, driven by
population, urbanization and developing countries. The supply
mix is shifting to biofuels and renewables, we know that…
and less coal. But oil and gas is going to continue to fuel the
global economic engine. The industry, though, is showing it
can be effective in reducing its own emissions. We just need
to embrace the industry to do that.”
Commitments to responsibly produce U.S. natural gas
surged in 2021, and this year is expected to be even better, as the
energy world works to reduce emissions, according to experts.
The first U.S. cargo filled with certified natural gas is
expected to be exported this year. The nation’s largest LNG
exporter, Cheniere Energy Inc., is in the final testing stages as it
prepares to offer its first cargo tagged with emissions estimates
from the wellhead-to-discharge point. And for the first time,
a pair of global frameworks is in place to better track and report greenhouse gas emissions (GHG) associated with LNG
cargoes.
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