Natural Gas Market Indicators: September 30, 2019The U.S. Energy Information Administration (EIA) Outlook 2019 released in September projects that world energy consumption will rise by nearly 50 percent from 2018 to 2050. Nearly 90 percent of projected energy growth—and uncertainties in the projections—will come from non-OECD countries driven by growing economies, population growth and access to marketed energy supplies. Among the EIA’s major findings are that global natural gas and petroleum consumption is rising in Asia faster than supply is growing, potentially shifting trade patterns and infrastructure investment.
Also, importantly, the EIA projects that renewables displace petroleum as the most used primary energy source in the 2040s, a reflection of economics and policy driving renewable energy consumption and growth in electricity demand. Underlying these projections is the continued strength of the U.S. natural gas market. EIA projects that North America becomes a net energy exporter and will help serve the rise in natural gas demand in Europe and increasingly in Asia.
Meanwhile, global oil prices have given back nearly all the gains following the attack on two oil installations in Saudi Arabia on September 14. Oil prices are trading lower as markets absorb information and adjust to new operational realities. West Texas Intermediate, at $55 per barrel of crude oil, is nearly $8 per barrel lower than the high price set in the aftermath of the attack. Brent Crude has fallen to under $61 per barrel. Meanwhile, natural gas futures prices have given back gains from the middle of September. Futures contracts for November 2019 delivery at Henry Hub trade at $2.35 per MMBtu on September 30.
Visit this link to download the full Natural Gas Market Indicators report. Topics covered in this week’s report include: Reported Prices, Weather, Working Gas in Underground Storage, Natural Gas Production, Shale Gas, Rig Counts, Pipeline Imports and Exports, and LNG Markets.
Please direct questions to Richard Meyer at rmeyer@aga.org or Gina DeFrancesco at gdefrancesco@aga.org.
