Key findings from Black & Veatch’s 2013 Strategic Directions in the North American Natural Gas Industry report show an industry embarking on a period of sustained growth driven by low-cost shale gas resources. However, for the economy to fully realize its benefits, industry leaders will have to address the challenges of a rapidly evolving U.S. energy market.
“The report’s findings show that stakeholders across the value chain must work together and compromise on key issues,” said Peter Abt, Managing Director of Black & Veatch’s Oil & Gas strategy practice. “The general consensus is that more pipeline capacity is needed. How this capacity is financed – and who pays for it – is the area of disconnect. Without pipeline investment, the natural gas industry’s growth will slow and consumers could see dramatic price swings.”
The good news for the industry, however, is that growth is expected to continue. More than 95 percent of natural gas industry leaders stated they were “optimistic” or “very optimistic” in their general outlook towards future industry growth.
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“The prevailing optimism across the industry is largely driven by expected growth in the power generation, LNG (liquefied natural gas) export and transportation markets,” said John Chevrette, President of Black & Veatch’s Management Consulting Division. “Black & Veatch’s projections have demand for natural gas from the power generation market nearly doubling by 2020.”
Other key findings from this year’s report include:
[mappress] LNG World News Staff, October 31, 2013; Image: Black & Veatch