Alexa

OIL AND GAS

LNG will continue to play a major role in global energy strategy

LNG will continue to play a major role in global energy strategy
The Siliconreview
26 Decemebr, 2019

The idea of LNG being the future of fuel was not widely accepted but now it is not only the key to the future but it is expected to play an important role in forming major global energy strategy. It is difficult is to remain patient when the oil prices tumbled to multi-year lows. One of the major reasons for this dip is inadequate pipeline capacity to move the commodity from one place to another. For some Permian Shale drillers, the prices have also turned negative. In West Texas, the gas price is continuing to remain depressed and it hit a new low in April. Drillers are paying producers to take their gas and this situation arose when the drillers failed to commit to shipments. Due to outputs doubling in the Permian, the pipeline infrastructure took a hit and the efforts to add new capacity are also stalled. The reliance on a narrow pool of producers is low and the new stranglehold on supply has paved the way for new producers to join.

Diversification of supply is also high in Australia and the US because of this the market of LNG has become more fluid. The pool of natural gases in reserves is continuing to grow every year.