Energy market outlook
Mark Peters reports the energy market outlook for the next decade at the 2014 Yokogawa Users Conference and Exhibition.
Mark Peters identified several key factors shaping energy expansion for the decade:
- Shale oil and gas
- Increased need for gas processing
- Climate change
- US exporting liquefied natural gas (LNG)
- US increasing petrochemical production
- Growth world population driving energy demand
- Changes in pipeline capacity
- Geological changes
- Energy security
The U.S. market, in particular, has reversed 40 years of oil and gas decline. Oil prices range between $100 to $120 and natural gas is poised for a long-term recovery. Peters reported that Texas will surpass its 1972 all-time high oil production by 2017. The U.S. has already surpassed Russia as one of the largest gas producers. Shale has been the game changer for the U.S. oil and gas industry and its recovery.
In addition, carbon emissions have decreased while petrochemicals have increased. Peters also noted that the U.S. is the only country that gives mineral rights to the land owners as well as a fully developed service industry.
Dependence on imported liquids is decreasing because natural gas supply is booming in the U.S. Natural gas production has increased, which puts the U.S. in the position of becoming a net exporter, which will drive industrial rejuvenation in America.
Peters reported that EPA regulations will force companies in the power generation industry to close coal-fired plants. This, in turn, will lead to increased natural gas usage since it lower the CO2 emissions. United States LNG export capacity has grown and LNG export facilities are being added for export to Europe and Asia. Internationally, production has grown the most in the Middle East, North America, and South America. The Asia Pacific region has shown the least growth. Peters reported that the Middle East will still play a major part in the energy market even with all of the market changes. Capital spending in refining has been forecast to reach $12.9 billion.
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