Natural Gas News – May 25, 2018
EIA: U.S. Remains the World’s Top Producer of Petroleum and Natural
World Oil reported: The United States remained the world’s top producer of petroleum and natural gas hydrocarbons in 2017, reaching a record high. The United States has been the world’s top producer of natural gas since 2009, when U.S. natural gas production surpassed that of Russia, and the world’s top producer of petroleum hydrocarbons since 2013, when U.S. production exceeded Saudi Arabia’s. Since 2008, U.S. petroleum and natural gas production has increased by nearly 60%. For the United States and Russia, total petroleum and natural gas hydrocarbon production, measured in energy content, is almost evenly split between petroleum and natural gas, while Saudi Arabia’s production heavily favors petroleum. Total petroleum production is made up of several different types of liquid fuels, including crude oil and lease condensate, tight oil, extra-heavy oil, and bitumen. In addition, various processes produce natural gas plant liquids (NGPL), biofuels, and other liquid fuels, some as a result of refinery processing gain.
Europe’s Freezing Winter May Exacerbate Global Warming
Bloomberg reported: Europe wants its industry to burn more natural gas instead of coal to reduce global warming. The problem is, there isn’t enough gas at the right price. Depleted gas stores after the coldest winter since 2012, coupled with pipeline constraints on flows from Russia and Norway, have driven prices to their highest level in at least five years. The result: generating electricity from gas is unprofitable for many utilities, according to Bloomberg calculations based on the cost of fuel, power and emission permits. The upward drift in gas prices complicates the plans of policy makers from German Chancellor Angela Merkel to U.K. Prime Minister Theresa May, who have set their sights on reducing the emissions blamed for damaging the atmosphere.