Brattle consultants have authored two separate reports for the American Petroleum Institute (API) that provide a comprehensive overview of the natural gas and crude oil and product markets.
“Understanding Natural Gas Markets,” authored by principals Steve Levine, Paul Carpenter, and associate Anul Thapa, discusses the implications of increased U.S. natural gas production. Technological advancements in natural gas extraction methods have made unconventional shale gas resources more accessible and economic. As of 2013, shale gas production accounted for approximately 40% of U.S. Lower 48 natural gas production, compared to approximately 5% in 2006. The growth in natural gas supply has outpaced demand growth, resulting in lower prices and lower volatility.
The report on natural gas markets points out several key trends affecting the industry, including:
The authors discuss these trends in detail and describe some of the key changes that will affect U.S. natural gas markets and prices in the coming years.
“Understanding Crude Oil and Product Markets,” prepared by Mr. Levine, principals Gary Taylor, Dan Arthur, and associate Mike Tolleth, is the second report prepared for the American Petroleum Institute that discusses the recent rapid growth of crude oil production in North America and its implications for U.S. and global markets for oil and petroleum products.
Additional information on both reports can be found on API’s website .
Press Release, September 2, 2014; Image: API