In the last few years, the global gas industry has seen a dramatic transformation, resulting in changes that have affected a lot of things including the workforce. There is always something new as time goes by and there is no sign that there will be a slowdown. There is a shifting focus from oil to natural gas, the new export opportunities, and geographies, as well as the oncoming digitalization. These revolutions will continue to unsettle the industry for the next ten years. Let us see exactly how the industry is being revolutionized.
The demand for and mass production of LNG
One way the global gas industry is being transformed is its massive conversion to liquified natural gas these days. Renewables would have been the predominant form of energy but the problem they have is volatility. Batteries are very expensive and only short-term, especially for massive amounts of power. LNG/NG is the transitional fuel that complements renewable projects and is dramatically cleaner than any of the competing fuels, so it ought to be available more widely. This is an opportunity to create a new market for the natural gas industry. Entrepreneurs including Joseph Gorder, Ryan Lance, Joseph Sigelman, and Darren Woods, took this chance to pursue improvement and opportunities for growth in the LNG section.
The demand for LNG has gone through the roof after the discovery of new gas reserves in a number of countries. A large amount of this is being processed into LNG for markets in the continent of Asia like Japan, China, Taiwan, and Korea.
There is a lot of interest in LNG right now because it is considered a cleaner burning fuel than coal or oil. It produces less carbon dioxide when burned, which makes it environmentally sustainable and important in the fight against climate change. In addition, LNG is very flexible in how it can be used. It can be exploited to generate electricity or to power ships and vehicles in a more secure way.
LNG is also becoming more popular because it is better poised as cost-competitive. The price of natural gas has dropped significantly in recent years, making LNG an attractive option for many countries.
However, it is important for the global gas industry to build on recent successes by enabling greater diversification of the market growth with reference to the latest report of the International Gas Union. This report says that while there is a strong potential for natural gas, it is not certain to be that way eventually.
Global gas industry sustenance
Gas has remained well-positioned and this has helped to sustain strong market growth in recent years as well as enabled investment in infrastructure for the supply and consumption of LNG/NG. Growth sustenance over the long run can be possible if the global gas industry builds on recent successes by enabling greater diversification of market growth and putting measures in place to ensure the long-term viability of gas no matter the situation that arises. There is also a need for Governments and industries to make gas more cost-competitive with other fuels on a sustained basis. Access to low-cost gas reserves should be expanded while the cost of steps through natural gas supply chains should be reduced.
Investment in gas infrastructure and LNG regasification
This is also critical to sustaining growth in access to gas while preparing for future energy transitions. This is one way that the global gas industry is being revolutionized. In Asia, there is an expansion of access to gas through liquified natural gas regasification, transmission, and distribution while in Europe, there is an ongoing development of infrastructure to supply low-carbon gas.
Methane emissions reduction is very important also as governments keep implementing policies that enable greater use of gas. This can be achieved by putting forward more stringent air quality policy measures. There are already steps to enabling more rapid coal-to-gas switching.
The development of low-carbon gas technologies is important to the success of the global gas industry’s transformation. Policies put in place can play key roles in promoting technological innovation, ensuring regular market demands, and developing supply sources. The realization of this potential of natural gas requires consistent coordinated actions by the gas industry and national governments. While it is possible to achieve sustained rapid growth for natural gas, it shouldn’t be taken for granted.