The global natural gas supply is expected to increase by 22.4 trillion cubic feet by 2035, with the US accounting for more than 50% of the growth, or 13.4 Tcf, according to a report from McKinsey & Company. The consultancy projects liquefied natural gas demand will grow by 3.6% annually until 2035, requiring more than $400 billion in investments across the LNG value chain to meet future needs after 2027-2028.
The international Gastech conference, taking place in Houston, Texas, this week for the first time since 2000, is expected to draw at least 35,000 participants from around the globe. Major talking points from the event so far include natural gas exports, the growth of liquefied natural gas and strategies for methane emissions reduction.
Oil and natural gas producers in Texas and legislators in New Mexico are making progress toward addressing the Permian Basin's water woes and increasing produced water recycling and reuse. Last week, New Mexico regulators joined forces with researchers to study ways to mitigate wastewater from drilling, and on Monday the Texas Alliance of Energy Producers published a report urging the industry to use more produced water in operations and made recommendations for improving produced water management.
A bill put forward by US Rep. Alan Lowenthal, D-Calif., would increase the bonds oil and natural gas companies post to drill on public lands, to $50,000 for a single lease, $250,000 for multiple leases and $1 million for multiple leases across multiple states. The bonds are meant to cover the possible costs of cleaning up oil and natural gas wells on federal onshore public lands.
Enbridge has dodged additional legal trouble after the Minnesota Supreme Court on Tuesday rejected environmental and tribal challenges to the embattled Line 3 oil pipeline replacement, clearing the way for state regulators to proceed with the permitting process. The American Petroleum Institute welcomed the decision, calling Line 3 the "most studied pipeline project in state history."
EOG Resources has signed a 15-year deal to supply natural gas to Cheniere Energy's liquefied natural gas export terminal in Corpus Christi, Texas, starting in 2020. EOG will provide about 140 million cubic feet of gas per day initially and gradually increase the volume to 440 Mcf/d.
Chinese-owned shale producer Surge Energy has managed to grow its Permian Basin production from 6,500 barrels of oil equivalent a day in mid-2016 to more than 50,000 boe/d this summer, making it one of the top 25 drillers in the region. Surge's operations are focused on the outer edges of the Permian where many thought oil was scarce, but the company plans to acquire more land, possibly later this year, to grow its business.
Pennsylvania lawmakers and environmentalists joined in calling on Gov. Tom Wolf to take steps to curb methane emissions from the state's oil and natural gas industry. The state Department of Environmental Protection has already drafted new methane emissions rules, but has yet to open them up for public comment.
Projects featuring a combination of wind, solar and other clean energy sources are more economical than most proposed natural gas projects, according to the Rocky Mountain Institute. Companies could save ratepayers $29 billion by replacing proposed gas projects with clean energy ones, the report says.
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