Natural gas is a clean and environmentally-friendly source of energy and will remain a major factor in the world energy supply equation and a driving force for world economic growth, according to Suhail Al Mazrouei, the UAE Minister of Energy.
The potential role of gas in the world energy mix rests on the availability of reliable supply at affordable prices, Suhail Al Mazrouie told the second summit of the Gas Exporting Countries Forum (GECF) in Moscow.
But he warned that any shortage of gas supplies and increases in gas prices could negatively affect the status of the fuel as a reliable source of energy — thereby prompting consumers to seek alternative sources to meet their needs.
He noted that striking the right (supply) balance in the market could diversify the uses for gas and would serve to attract more investment for the downstream sectors of the economy.
In his address to the GECF meeting, Al Mazrouie said the UAE would invest USD 25 billion on gas development projects over the next five years to explore new gas fields and to increase gas output. He added that in a similar context, several UAE oil and gas companies were investing in gas development and production projects in other countries.
The outcome of the GECF Summit was the Moscow Declaration in which member countries unanimously affirmed to strengthen GECF, enhance global coordination to protect the interest of GECF, preserve principles of international trade, as well as uphold the fundamental role of long-term gas contracts and continue to support gas pricing based on oil/oil products indexation.
Major petrochemical companies are now looking to add a significant natural gas component to their energy mix, as global demand for the gas skyrockets.
Royal Dutch Shell’s recent, long range, and paradigm-shattering energy prediction and policy paper, which prognosticates how we will use energy until the end of this century, discusses these paradigm shifts in global energy use along with the supply/demand equation.
Royal Dutch Shell’s New Lense Scenarios (policy paper) paints a picture of a new order among the different kinds of energy and how energy use will change between now and 2100.
Two different scenarios are discussed and named. The two, named ‘Mountains’ and ‘Oceans’ take different views of the many factors likely to affect the industry over the next 87 years, but there is more consensus than disagreement between the two views.
The boom in natural gas figures prominently in both scenarios with natural gas dramatically ramping-up to become the number one kind of energy in the world by 2030.
“In 2030, natural gas becomes the largest global primary energy source, ending a 70-year reign for oil.” — NLS report
Due to enhanced Carbon Capture and Storage, clean combustion technology, and the use of CO2 gas for industrial processes by 2100, Shell sees global emissions of carbon dioxide dropping to near zero by 2100.
A quote from the report’s main authour, Jeremy Bentham, speaks volumes about the anticipated level of demand for natural gas.“The underlying pent-up demand for gas is very strong…we see it being sucked up, every molecule.” — John Brian Shannon