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Page added on June 23, 2018

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What Will Follow The Age Of Oil?

Consumption

U.S. natural gas production will increase by 10 percent this year alone and by as much as 60 percent by 2037, a new report from IHS Markit has forecast. The market research company is extremely upbeat about U.S. gas because of the shale gas revolution, seeing the country becoming a leading LNG exporter thanks to this revolution as well.

Besides production, IHS analysts also raised their estimates of gas supply in the United States that is economical at prices below the US$4 per MMBtu Henry Hub benchmark price—from 900 trillion cubic feet in 2010 to 1,250 trillion cubic feet. Thanks to this consistent cost decline, IHS expects natural gas to come to account for almost half of power generation in the country by 2040, from about 42 percent today.

To date, the U.S. produces around 81 billion cubic feet of natural gas daily. That’s up from 50 billion cubic feet before the shale boom, but if IHS estimates are correct, the daily average will expand to 118 billion cubic feet by 2037.

That’s good news for the power generation sector where coal and nuclear plants are being retired at a faster pace now that there is so much cheap gas around. Moody’s earlier this month estimated that growing gas production will make it possible to offset the loss of 35 GW of power generation capacity from plant retirements over the next five years. Sure, some renewable installation additions will help, too, but gas-fired plants will be the dominant alternative to coal and nuclear.

Since the United States cannot consume all this gas, a lot more of it will go to international markets, with IHS expecting the daily average LNG export rate in five years at a minimum of 10 billion cubic feet natural gas equivalent. That’s up from an estimated 3 billion cubic feet this year and 1.9 billion cubic feet last year.

There might be a temporary problem with gas exports in the near term as a result of the tariff match between Washington and Beijing, though. Beijing threatened it would respond to the latest tariff round announced by Washington with the introduction of its own tariffs on U.S. petroleum, gas, and coal imports. Shale producers have warned that this will have negative consequences for all energy exports since China is one of the biggest export markets for the industry.

Besides exports, another growth industry for the new gas revolution will be petrochemicals. IHS estimates that this revolution will drive capital investments of more than US$120 billion over the period from 2012 to 2020 into expanding petrochemicals capacity.

Natural gas is finding its way into the transport and logistics sector. Though not popular as a fuel for vehicles—at least compared with gasoline—gas is becoming attractive. Earlier this month, UPS said it will spend US$130 million on the acquisition of a fleet of 730 vehicles running on compressed natural gas and on building five CNG fueling stations.

The shale boom made natural gas abundant and cheap, and if IHS is right, it will only increase in abundance and decrease in cost in the future. While this may not be too good for producers’ bottom lines, it’s good for pretty much all other industries. We might see the gas age replace the oil age within our lifetimes.

By Irina Slav for Oilprice.com



27 Comments on "What Will Follow The Age Of Oil?"

  1. onlooker on Sat, 23rd Jun 2018 8:23 am 

    The same that will follow WWIII
    “I know not with what weapons World War III will be fought, but World War IV will be fought with sticks and stones.”
    Albert Einstein

  2. MASTERMIND on Sat, 23rd Jun 2018 8:52 am 

    Onlooker

    We need to create a one world government and NWO..then we could eliminate war altogether..And then we could mix everyone together so there won’t be anymore racist..

  3. dissident on Sat, 23rd Jun 2018 8:57 am 

    What a ridiculous article. Natural gas will fade away together with oil. It will not replace oil and only idiots would believe that it will.

  4. MASTERMIND on Sat, 23rd Jun 2018 8:59 am 

    US white population declines and Generation “Z-Plus” is minority white, census shows

    https://www.brookings.edu/blog/the-avenue/2018/06/21/us-white-population-declines-and-generation-z-plus-is-minority-white-census-shows/

    Whites are now the minority in America! The white devil will be slayed!

    Muh mustard race!

    LMfAO!

  5. onlooker on Sat, 23rd Jun 2018 9:06 am 

    I guess DISSIDENT people can’t quite see how oil is so fungible, eclectic as an energy source and particularly as a liquid transportation fuel source thus indispensable currently

  6. MASTERMIND on Sat, 23rd Jun 2018 9:14 am 

    Researchers Find a Link Between Trump Voters and Opioid Use

    https://www.motherjones.com/politics/2018/06/trump-voters-opioid-crisis/

  7. Davy on Sat, 23rd Jun 2018 9:18 am 

    Fake news Researchers Find a Link Between Trump Voters and Opioid Use

  8. MASTERMIND on Sat, 23rd Jun 2018 9:33 am 

    Davy

    A study published on Friday by scientists at the University of Texas and the University of Toronto points to a connection between Trump country and the nation’s opioid crisis.

    The report, published in the Journal of the American Medical Association, gathered data at the county level showing a correlation between Trump voters and the drug epidemic. “Support for the Republican candidate in the 2016 election is a marker for physical conditions, economic circumstances, and cultural forces associated with opioid use,” the authors say.

    https://www.motherjones.com/politics/2018/06/trump-voters-opioid-crisis/

    You think a science study done by the American Medical Association is fake news?

    .

  9. Davy on Sat, 23rd Jun 2018 9:47 am 

    “A study published on Friday by scientists at the University of Texas and the University of Toronto….The report, published in the Journal of the American Medical Association”
    I used to have respect for these organizations but recently they have been infiltrated by political and social bias that is so bad as to call into question their legitimacy. The same thing is happening and has been traditionally happening on the conservative side with think tanks and corporate sponsored marketing. You just believe this shit because of the label, mm. This is why you are so intellectually lame. You are unable to use your brain to wade through the shit or you would not post some of the dung you do.

    “Support for the Republican candidate in the 2016 election is a marker for physical conditions, economic circumstances, and cultural forces associated with opioid use,” the authors say.”
    How about some studies on blind lying liberals and their problems and then we will talk. You are a prime example of something wrong. Any science on you? Many Trump voters come from the lower classes so opioids are the choice drug. How about the drug of choice of the blind lying liberals.

  10. Gstar on Sat, 23rd Jun 2018 10:34 am 

    “Sechin, Russia’s most influential oil executive and a close ally of President Vladimir Putin, said an oil deficit of around 700-750 million tonnes a year was estimated by 2025.”
    750 million tonnes equals to 750,000,000/0.136=5,514,705,882 barrels/years equals 15.1 mb/d if I converted correctly.
    It’s a big amount.
    https://www.reuters.com/article/us-russia-rosneft-sechin/russias-rosneft-sees-chance-to-increase-global-oil-market-share-idUSKBN1JH0GO

  11. MASTERMIND on Sat, 23rd Jun 2018 11:01 am 

    Davy

    slandering people is not an argument against a science study..If you look at were the opiod epidemic is most prevalent, its all in general Trump country..And if you read the study they it was all backed up with data..So now you are denying facts..You are just a moron who can’t handle the truth..a close minded bigot..and proud of it.

  12. MASTERMIND on Sat, 23rd Jun 2018 11:05 am 

    Davy

    How about a study on blind lying liberals? What does fuck does that even mean? You keep calling liberals liars yet you can’t cite any evidence..And I am not saying there aren’t blind lying liberals anywhere..I am just saying you are giving in examples and are just spewing hate..No different than clog..

    You stupid old man..going more senile by the day..

  13. MASTERMIND on Sat, 23rd Jun 2018 11:10 am 

    Davy

    How about we change the subject to liberals so we can rationalize Trump’s drug addict base? How about we do a study on Bengahzi too! And Trump has told more lies in his first year than any president in American history..Over 3k provable lies..and yet crickets from you..

    You live in a paranoid Jesus fantasy land!

  14. MASTERMIND on Sat, 23rd Jun 2018 11:42 am 

    Trump’s press secretary got booted from a restaurant..Too bad there isn’t a child molester cafe, where she could be among monsters like herself..lol

  15. Cloggie on Sat, 23rd Jun 2018 1:18 pm 

    What comes after oil? Easy… 2016 update wind energy champs:

    https://deepresource.files.wordpress.com/2018/06/ren21-windshare.jpg?w=760&h=&zoom=2

    Denmark…38% (now 44%)
    Ireland…….28%
    Portugal…..24%
    Uruguay…..23%
    Cyprus…….20%
    Spain………19%
    Germany….13%

    (share electricity production)

  16. Cloggie on Sat, 23rd Jun 2018 1:25 pm 

    nibbling away the fossil fuer era one percent at a time.

  17. DerHundistLos on Sat, 23rd Jun 2018 1:28 pm 

    “How about some studies on blind lying liberals and their problems and then we will talk.”

    Davy, you are the central clearing house for all Fox Noise generated conspiracy stories.

    “Fake news Researchers Find a Link Between Trump Voters and Opioid Use”

    Since when is a study published by the AMA fake news? An emotionally generated statement is not evidence of fake news.

  18. Davy on Sat, 23rd Jun 2018 2:37 pm 

    Der hund you are the most extreme of the blind lying liberals here. Your extremism shows in the lack of balance found in your above comment. Until extremist like you are purged from the liberal side I won’t be voting liberal. I once tended to vote liberal but now no friggin way. There are many more like me so liberals get you head out of your asses if you want to return to power.

  19. GregT on Sat, 23rd Jun 2018 3:52 pm 

    Geez Davy,

    Just when you were beginning to display a glimmer of hope.

  20. Davy on Sat, 23rd Jun 2018 4:25 pm 

    Come on greggie, the feed went from a bad comment by MM to a legitimate return comment by me to an attack by der hund. That attack was answered. I thought there was a glimmer of hope from you not stalking and pricking me. Something that generally leads to a slopping up of the board with 20 useless comments. Wow, you made it a total of one day by being respectable. We get enough of these useless comments from the silly kid. Try thinking of others why don’t you.

  21. Anonymouse1 on Sat, 23rd Jun 2018 7:11 pm 

    I have a suggestion for good commenting for you eturd. YOU go…..outside for a while. A long while. Pull some weeds, feed and water those goats of yours, instead of just abusing them, and….dont come back.

    I promise you, the quality of comments will go through the roof with you gone(how could it be otherwise?), and best of all, you wont have to worry about any of that. You pull weeds, work on that outhouse of yours, whatever, secure in the knowledge all is well @ PO.com moderated FFA comments area.

    See how easy that was, exceptionalturd?

  22. Boney Joe on Sat, 23rd Jun 2018 10:50 pm 

    DavyDonaldTurd (DDT):

    You may be curious regarding your updated screen-name. Your worship of Trump helps explain your propensity to blend fact and fiction. The truthfulness of this statement is confirmed by analyzing a few examples: You like throwing around “liar, lying”. Then you doubled down by suggesting that you were a liberal voter- what a scammer.

    DDT, your thoughts reflect AND project perfectly like a mirror; the subconscious perceptions that are held about the Self. What you fail to comprehend is your frequent bullying and incessant assaults are a perfect reflection of your present state of mind and how you feel about yourself on the inside. Your resentment and anger toward others reveals anger and contempt of yourself, rooted in jealously, fear, and a sense of failure with who you are, questioning your ability to aptly compete with others.

    DDT, use this knowledge to become more self-aware and introspective. By doing so, you can diffuse inner conflict and confusion and become a pacifist of the mind rather then a bellicose, xenophobic, and hateful Trumptard of the mind.

    DavyDonaldTurd (DDT), clean-up your act, now, before it’s too late. The clock is ticking and the hour is late.

    You poor, unfortunate thing- Ms. DDT Thing, with your permission.

  23. print baby print on Sun, 24th Jun 2018 5:05 am 

    People are you aware that stories which come up in the last year or two are unbelievable . It was unimaginable to hear from CEo of Aramaco shell etc about oil shortage, supply crunch , those people were talking that there is enough oil . Something big is coming and very soon . very very soon. We have been warned

  24. Cloggie on Sun, 24th Jun 2018 8:37 am 

    Arabia and its oil is an important energy supplier to Europe. However they could be replaced by Maghreb countries in a couple of decades, when the latter develop their solar resources and become a major hydrogen and/or electricity supplier to nearby Europe:

    https://deepresource.wordpress.com/2018/06/24/noor-worlds-largest-solar-power-plant-in-morocco/

  25. Davy on Sun, 24th Jun 2018 8:52 am 

    The US could do the same neder. Imagine that we could save your ass yet again and to think you constantly whine about Americans.

  26. Cloggie on Sun, 24th Jun 2018 9:06 am 

    The US could do the same neder. Imagine that we could save your ass yet again and to think you constantly whine about Americans.

    You never saved us, Mickey Mouse, as I have explained to you many times and you never defended yourself against my explanations/allegations.

    You were letting yourself being used by your kosher owners, in conjunction by that other weak link of the white race: Soviet-Russia.

    We will get rid of you soon enough and you can only pray that we Europeans will come to your aid and save from European-America what can be saved. But by that time you will be in Italy, sewing a Canadian flag to that silly MAGA-hat of yours. Speculators-without-a-country like you will never fight for anything.

    Now why don’t you crawl to you owner millimind and beg him to come to your aid to defend yourself against your detractors, like you did a few days ago.

    #HowLowCanYouGo?

  27. Shortend on Sun, 24th Jun 2018 9:12 am 

    What will follow, the age of banging stones together…part II

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