Implications for the Evolving Global Energy Market
Natural gas has long been an attractive energy source; relatively clean, and with
comparatively ample global reserves, it currently accounts for nearly one-fourth
of the world’s energy consumption. Yet the natural gas market has remained
chiefly regional, by simple virtue of the product’s physical state: as a gas, the
primary way to transport and distribute it has been via costly and static pipelines.
And once pipelines are built, gas can only be delivered to the network they
establish. That is, until the advent of liquefied natural gas, or LNG.
Petroleum Industries Implications
The world demand for oil has been growing steadily for over 60 years, and
industry analysts indicate that it will continue for the foreseeable future. Demand
growth in Asia and other developing countries is accelerating, and growth
continues steadily in OECD countries. This points to a continued strong market
for sellers and a tight market for buyers.