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...
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.