Natural gas is a fossil fuel that is growing its usage rapidly in different markets. Power driven companies that were using coal as a means of energy are now turning to natural gases for energy. The level of industrialization is growing globally and this, in turn, brings about the need to generate power. Natural gas can be used to generate this power at a much lower price. It has been predicted that the need for natural gas usage will be increased by about 1.6 to 1.9 percent per annum. The United States is the largest producer and consumer of natural gas. It produces its gas to be used both locally and internationally, mostly exporting to developing countries.
Natural gas and Country demands
China is one of the biggest consumers of natural gas as well, it has been estimated that it will cover 40 percent of the increase that has been predicted per annum. The usage in China will grow five times more the current usage by 2022. This is because it is growing its industrial sector as well. Other countries that have shown an increase in demand for natural gas are Mexico and other Asian countries that are developing. These countries are a great inspiration for Canada, a country which is rich in natural gas, to produce and export to. The demand for natural gas can also be attributed to the fact that since 2005, the importation of the gas has grown from 15 countries to 39 countries.
Production, Price and Environmental benefits
Even at the current low prices offered for gas, Marcellus will be forced to increase its production by 45 % by 2022. This is in order to cater to the growing need in the industrial sector locally and to be able to still have a surplus to be liquefied and exported. It is predicted that the United States will be competing with Qatar and Australia in the export of Liquid Natural Gas. This Liquid Natural Gas, LNG, is attracting many potential clients especially when they look at the advantages over coal. The transport sector which is one of the largest growing industries is likely to increase its demand for natural gas by 3 % by 2035. This also shows that there is a gradual increase in natural gas demand.
With the challenging environment that LNG is bringing to the traditional business models, there are a lot of companies that are changing their means of energy to natural gas. There is also security in the global gas production as this transformation for companies is taking place. With an increase in production for this natural gas by various companies, there is a lot of competition that is created which will bring about favorable prices and flexibility of exports. With prices lowering and environmental considerations been taken into place, there is a stiff competition that will be geared towards coal usage by natural gases. Companies are making huge investments in the production of natural gas. This should be a clear indicator that the natural gas business is booming due to increased demand.