Shell betting big on natural gas, Upstream director says
Shell’s upstream director Andrew Brown has said that demand for natural gas will continue do grow in the long turn, and the world appetite for energy is increasing.
During his speech at the IHS CERAweek in Houston, at a session named “Global Gas: How do we maintain momentum,” he said that the industry is today facing a significant challenge in needing to meet a higher energy demand, with fewer emissions.
He said that natural gas is one of the key solutions for this problem, as at current levels of consumption, there are enough economically recoverable gas reserves to last for the next 200 years.
“Gas is also the cleanest burning fossil fuel, producing only half of carbon dioxide and just one tenth of the air pollutants from conventional coal, when used to generate electricity,” Brown said.
Brown said that Shell’s estimates show that demand for gas will be 50% higher by 2040, than it is today, which is one of the reasons the company is focusing on gas and LNG, especially through the recently announced intention take over BG Group, a specialist in gas and LNG, for $70 billion.
Speaking geographically, Brown said that natural gas demand will continue to grow strongly in Asia, despite the recent slowdown of China’s economy, and the Middle East is emerging as the next large market for gas.
To support the worldwide usage of natural gas, Brown said it was important that a robust carbon pricing system be established.
When it comes to supply, Brown said that most of the new global LNG supply, 80%, will come from only three regions: North America, East Africa and Australia.
Offshore Energy Today staff