Black & Veatch has released its third annual ‘Strategic Directions: US Natural Gas Industry’ report, which illustrates the dramatic changes taking place throughout the US natural gas industry.
Black & Veatch reports that cautious optimism has been replaced by heightened activity, with nearly 90% of industry respondents expecting electric power generation to undergo material gas consumption increases by 2020.
The report also finds that demand from power generators, exports and the transportation (natural gas vehicle) sectors is expected to rise for the foreseeable future.
Safety remains the top industry concern, while reliability and economic growth are also key considerations.
The report also highlights that many challenges remain for the natural gas industry, with 72% of midstream respondents suggesting that delays from opposition groups are a dominant challenge to new pipeline development.
Another key finding was that US LNG exports will net both short and long-term benefits to the country’s economy. Increased shale gas production, increases in the US natural gas price, and an increase in the US economic benefit over the long-term were cited as the top three potential outcomes of US LNG exports.
John Chevrette, President of Black & Veatch’s management consulting business, said: “What a difference a year makes […] One year ago the mood across the natural gas value chain was one of cautious optimism. The [new report] reflects a marketplace surging with activity, driven in large part by low-cost shale gas. The strong demand for US natural gas resources can help foster a new era of energy independence. Yet, it also requires industry and regulators to work together to ensure a sustainable path forward.”
Adapted from press release by Callum O'Reilly
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/29102014/black-and-veatch-releases-natural-gas-report-1685/