U.S. Natural Gas Supply is Expected to Reach 110 Billion Cubic Feet Per Day by 2035, According to Navigant’s Global Energy ...
April 01 2015 - 5:15AM
Business Wire
The opening of new export facilities in the United States
marks a new era for the global natural gas market, report
concludes
A new report from Navigant’s global Energy Practice, the North
American Natural Gas Market Outlook, Year-End 2014, examines the
state of the natural gas industry and provides forecasts for supply
and demand through 2035.
Driven by ongoing gas shale growth in the Northeast, production
of natural gas in the United States continued its strong growth
trajectory in 2014, increasing by 6.1 billion cubic feet per day
(Bcfd), or 9.2 percent, over the course of the year. More growth in
gas production is expected in the future, particularly from the
Marcellus shale formation, with the only possible constraint the
rate of infrastructure development in the region. Click to tweet:
According to the North American Natural Gas Market Outlook,
Year-End 2014, published by Navigant’s Energy Practice, U.S.
natural gas supply is expected to increase from 72 Bcfd in 2015 to
nearly 110 Bcfd by 2035.
“Supply side growth continues to drive most other aspects of the
natural gas industry in North America,” says Gordon Pickering,
Director with Navigant’s Energy Practice. “As we explain in the
Natural Gas Market Outlook, this strong supply basis is giving rise
to a new chapter of the gas industry, with the culmination of a
half decade of new LNG project development and the beginning of a
new, global market for natural gas.”
The opening of this new market is signaled by the opening of new
export capacity on the U.S. Gulf Coast, according to the Natural
Gas Market Outlook. The opening of Sabine Pass will signify the
point at which North America becomes connected to the global gas
market for the first time in history—with truly global consequences
for gas markets in North America and around the world. Those
consequences will become fully apparent as more LNG export projects
come online, the report concludes.
Other findings from the Natural Gas Market Outlook, Year-End
2014, include:
- Annual average natural gas prices at
Henry Hub are expected to stabilize over the near to mid-term, and
grow steadily over the long-term—albeit reaching only moderate
levels compared to historical gas price levels seen earlier this
century.
- Additional infrastructure in the
Marcellus and Utica shale gas regions, coming online around 2017,
is expected to relieve bottlenecks and allow stranded gas to move
to market, enabling prices to recover to levels similar to the
broader North American gas market.
- U.S. natural gas demand is expected to
grow steadily through 2035, particularly for electricity
generation, reaching around 90 Bcfd annually by 2035.
Developed by Navigant’s global Energy Practice, The North
American Natural Gas Market Outlook, Year-End 2014 uses an
integrated process and a full suite of commercial software and
proprietary energy market models to analyze the electric and fossil
fuel markets. Navigant’s natural gas and power models are based on
key assumptions driving natural gas prices and consumption from
gas-fired generation over the outlook period. The Outlook includes
updated forecasts for natural gas prices, dry conventional and
shale gas production, natural gas demand, and gas storage
activity.
About Navigant
Navigant is a specialized, global professional services firm
dedicated to assisting clients in creating and protecting value in
the face of critical business risks and opportunities. Through
senior level engagement with clients, Navigant professionals
deliver expert and advisory work through implementation and
business process management services. The firm combines deep
technical expertise in Disputes and Investigations, Economics,
Financial Advisory and Management Consulting, with business
pragmatism to address clients’ needs in highly regulated
industries, including Construction, Energy, Financial Services and
Healthcare. More information about Navigant can be found at
navigant.com.
* The information contained in this press
release concerning the report, “North American Natural Gas Market
Outlook, Year-End 2014,” is a summary and reflects Navigant’s
current expectations based on market data and trend analysis.
Market predictions and expectations are inherently uncertain and
actual results may differ materially from those contained in this
press release or the report. Please refer to the full report for a
complete understanding of the assumptions underlying the report’s
conclusions and the methodologies used to create the report.
Navigant undertakes no obligation to update any of the information
contained in this press release or the report.
Navigant ResearchRichard Martin,
+1-303-493-5483Richard.martin@navigant.com