A new report provides both good news and not-so good news for the region's natural gas production industry. The report by the International Energy Agency (IEA) states that "low natural gas prices will result in gas generating almost as much electricity as coal in the United States by 2017." The report also notes that abundant supplies and lower prices will result in North America becoming a net LNG exporter in five years.
“The Golden Age of Gas has dawned in North America, but its continued expansion worldwide depends on producing gas and bringing it to the market in a way that is friendly to investors and society as a whole,” IEA Executive Director Maria van der Hoeven said during the launch of Medium-Term Gas Market Report 2012. “As gas competes against other energy sources in all market segments, notably in the power sector, pricing conditions are a key element to keep it competitive everywhere. This medium-term report aims to facilitate investor decisions by providing a timely, in-depth analysis of the current trends and what we expect to take place over the coming five years.”
Click to read IEA's press release: