Skip main navigation

Golden age of natural gas

Golden age of natural gas
The US has seen a real shale gas & shale oil revolution, thanks to breakthrough technology for fracking and reduced operating costs. The rapid commercialization of large-scale shale gas production has made the US self-sufficient in gas and has also brought considerable potential for export. Oil and LNG (Liquefied Natural Gas) that was expected to be imported by the US, especially from Qatar, was instead made available to Europe and Asia. The massive build-up of LNG supply in recent years was predicated on growing Asian demand, which was anticipated to be 70 to 80 percent of global growth. It was expected that this demand could be sustained at high prices.
It was believed that gas was heading for a golden age of high demand and solid prices to support the massive investments being made globally. LNG was believed to be at the center of this natural gas revolution. As the carbon emissions target set by the international agreement was uncertain before the signing of the climate change agreements in Paris in December 2015, the demand for gas? an eco-friendly fossil fuel compared to others was increasing rather than introducing new and renewable forms of energy. The withdrawal of the United States from the LNG and oil market could potentially also in the future put downward pressure on global oil and gas prices.
Here, I want to take some note of types of global natural gas trade. There are two types of global natural gas trade. Piped natural gas which is PNG and liquefied natural gas which is LNG. As of now, two thirds of global natural gas trade take the form of PNG. In other words, only one third of global natural gas trade is in the form of LNG. Golden age of natural gas means among other things that in the future, the portion of LNG will increase rather than PNG due to US shale gas revolution.

For many years, the outlook for natural gas and LNG has been very optimistic.

A golden age for natural gas was near, according to the International Energy Agency in 2011.

High oil prices incentivized the construction of significant additional LNG capacity additions worldwide.

Back in 2000, the world traded 100 million tons of LNG. By 2011, that total had risen to 242 million tons.

This article is from the free online

Global Resource Politics: the Past, Present and Future of Oil, Gas and Shale

Created by
FutureLearn - Learning For Life

Our purpose is to transform access to education.

We offer a diverse selection of courses from leading universities and cultural institutions from around the world. These are delivered one step at a time, and are accessible on mobile, tablet and desktop, so you can fit learning around your life.

We believe learning should be an enjoyable, social experience, so our courses offer the opportunity to discuss what you’re learning with others as you go, helping you make fresh discoveries and form new ideas.
You can unlock new opportunities with unlimited access to hundreds of online short courses for a year by subscribing to our Unlimited package. Build your knowledge with top universities and organisations.

Learn more about how FutureLearn is transforming access to education