Natural gas consumption is forecast to expand for years to come, but the energy industry is embracing ways to reduce the methane and carbon dioxide (CO2) emissions from their production. In the United States, publicly held exploration and production (E&P) companies have taken up the mantle, spurred on by shareholder pressures and government incentives. The…
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Natural Gas E&Ps Grab the Baton for M&A in Early 2024 After Record Year of Permian Deals
Could more natural gas-focused exploration and production (E&P) or midstream transactions be in the works after Chesapeake Energy Corp. and Southwestern Energy Co. agreed to combine into the Lower 48’s largest gas producer? Oil-focused dealmaking powered much of the consolidation in the U.S. oil and gas industry in 2023, with associated gas production riding the…
Natural Gas Remains Essential to Power Mix Even as Renewables Take a Bigger Bite
Challenges to add renewables to the mix of power supply add to issues that will keep natural gas generation growing and an important part of the energy stack in 2024. “Coal and natural gas remain important to the U.S. electric grid, even as variable renewable resources such as solar and wind grow,” U.S. Energy Information…
North American Upstream Capex Inching Up, with Discipline and Shareholders Still Top Priorities
Natural gas and oil explorers worldwide are predicted to spend 5% more overall this year for upstream activity, with North American budgets rising for the third consecutive year. While upstream capital expenditures (capex) by global exploration and production (E&P) companies will climb, it’s predicted to sharply decelerate from the double-digit gains in 2023, according to…
U.S. Oil, Natural Gas Industry Aiming to ‘Dismantle Policy Threats’ as Election Nears
The U.S. oil and gas industry is urging policymakers to support LNG exports, permitting reform for energy infrastructure, and increased leasing in federal lands and waters. The sector’s most prominent lobbying group, the American Petroleum Institute (API), laid out its policy priorities during a recent industry event and subsequent call with reporters. As the industry…
Will Middle East Tensions Test 2024’s Thin Global Natural Gas Supply Balance?
Headed into 2024, global natural gas prices have seemingly coalesced around a new normal after a volatile two-year period, but experts warn a tenuous market balance means volatility is likely just around the corner for at least the next year. While prices for spot LNG and European pipeline volumes are elevated after Russia’s 2022 invasion…
Mexico Natural Gas Market Poised for Growth in Pivotal Election Year
Mexico’s natural gas market will continue its modernization and expansion in 2024, regardless of who wins the presidential election on June 2. Natural gas demand in Mexico, driven by the power sector, continues to rise. Power demand was up by around 440 MMcf/d in 2023 to 4.603 Bcf/d, according to Wood Mackenzie data. Natural gas…
Energy Majors, Traders Betting on Big Future for LNG
Energy majors and commodities traders are playing an outsized role in supporting a global LNG export buildout that ultimately could saturate the market with the super-chilled fuel later this decade, bring prices down and stoke future demand. About 150 million metric tons/year (mmty) of additional liquefaction capacity is under construction across North America and in…
LNG, Mexico Exports Driving South Texas Natural Gas Demand Growth
LNG and Mexico exports are expected to underpin U.S. natural gas demand growth over the coming years, with the Agua Dulce hub in South Texas playing a critical supply role. In turn, both markets are building out infrastructure to ensure access to molecules and capacity in an increasingly competitive and globalized gas market. “Feed gas…
Natural Gas Industry Forecasting RNG Growing as Investments Climb
As policies incentivizing clean energy continue to mount, renewable natural gas (RNG) is poised for more growth, the scale of which could depend on the outcome of state and federal legislation. The Inflation Reduction Act of 2022 (IRA) launched investments into alternative fuels, including RNG, in part because of the expansion of investment tax credits…