Industry

Consistent lower natural gas prices resulting from the boom in shale production are expected to fuel a major increase in industrial demand over the coming years. RBN expects that sector’s demand to increase by 5 Bcf/d from 19 Bcf/d in 2013 to 24 Bcf/d in 2025. There have been numerous announcements of new plant builds and expanded capacity projects in primary industries. Less well documented are the wider ramifications of abundant shale natural gas and natural gas liquids (NGL) supplies for US manufacturing industry as a whole. Today in the first of a two part series Taylor Robinson from PLG Consulting outlines the changes underpinning a new industrial renaissance.

The golden years of natural gas abundance are off and running, with export projects, new industrial proposals, new power generation use, and expanded transportation use - all building on a perception of long-term abundant supply at reasonable prices.  Does it all work out in the end?  Do supply and demand balance at stable, affordable prices, even with a lot more demand?  Today we examine the likelihood that gas producers can provide adequate supplies without causing significant upward pressure on prices.