GE: The Age of Gas is Upon Us
But the price of gas will play its part.
“The big story that we’re trying to lay out there is this idea that there is a ‘strike zone’ where natural gas can compete effectively against other fuels,” Farina said.
“It’s different in different regions depending on the underlying cost of supply and the underlying cost of transportation. And we don’t know if gas is going to end up in that strike zone, but we think for that Age of Gas to become a reality it has to find its way in there.
“The idea is that prices have to be high enough to support investment in new supplies but low enough to be competitive against alternative fuels, particularly against coal … and particularly in a lot of the emerging markets. And I think one of the challenges is that if there isn’t increased flexibility, the right kinds of partnerships and other things to drive that competitiveness of gas versus coal you’re going to see a lot of those markets remain coal markets.”
On the other hand Farina believes that gas versus oil “has a bright future in a lot of places”.
In fact, the GE report expects total demand for gas will rival that for oil. Global gas demand today is about 3,500 billion cubic meters (Bcm) per year (123.6 trillion cubic feet (Tcf)), or about 70 percent of the size of the global oil market. The GE Age of Gas outlook estimates global consumption will grow by nearly 1,300 Bcm (45.9 Tcf) of gas by 2025, which is a 36-percent increase over its present size.
Oil represents 31 percent of global energy use today, but should fall to 27 percent by 2025 as efficiency gains, conservation and substitution effects take hold, according to the GE report. This decline will occur largely due to high prices further squeezing oil out of stationary fuel applications, as well as the slow but-steady-adoption of alternative transportation fuels.
12345
View Full Article
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- ITEM Club: More Jobs Losses Expected in NE Scotland due to Oil Slump
- Shell Q&A: What Makes an Ideal Employer in Oil, Gas?
- Shell Takes First Place in Rigzone's Inaugural Ideal Employer Survey
- UK Government 'Must Recommit' to Oil, Gas Sector in Autumn Statement
- UK Government Gives Go-Ahead for Fracking in NW England
- Falcon Oil Declares Commercial Flow Test Results for Shenandoah Well
- Japan Failing to Meet Corporate Demand for Clean Power: Amazon
- Macquarie Strategists Expect Brent Oil Price to Grind Higher
- UK Oil Regulator Publishes New Emissions Reduction Plan
- PetroChina Posts Higher Annual Profit on Higher Production
- Pennsylvania County Joins List of Local Govts Suing Big Oil over Climate
- McDermott Settles Reficar Dispute
- US, SKorea Launch Task Force to Stop Illicit Refined Oil Flows into NKorea
- Russian Navy Enters Warship-Crowded Red Sea Amid Houthi Attacks
- USA Commercial Crude Oil Inventories Increase
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Equinor Makes Discovery in North Sea
- Standard Chartered Reiterates $94 Brent Call
- India Halts Russia Oil Supplies From Sanctioned Tanker Giant
- DOI Announces Proposal for Second GOM Offshore Wind Auction
- Centcom, Dryad Outline Recent Moves Around Red Sea Region
- PetroChina Set to Receive Venezuelan Oil
- Czech Conglomerate to Buy Major Stake in Gasnet for $917MM
- US DOE Offers $44MM in Funding to Boost Clean Power Distribution
- Oil Settles Lower as Stronger Dollar Offsets Tighter Market
- Chinese Mega Company Makes Major Oilfield Discovery
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Another Major Oilfield Discovery
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Vessel Sinks in Red Sea After Missile Strike
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension
- Equinor Makes Discovery in North Sea