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I N N O V AT I O N S • O C T O B E R - D E C E M B E R 2 0 1 4
If I had to choose only two words to describe today’s global
natural gas market, they would be “dynamic” and “sustainable.”
It’s no secret that natural gas production is growing at an
unprecedented pace in the United States due to the surge in supply
from unconventional sources, primarily shale. Even in the face of
lower American domestic prices, which bottomed out at $2.50 per
thousand cubic feet in 2012, the United States continued to add
volume, largely because of the gas produced in conjunction with
shale oil and the lucrative business of NGLs.
This isn’t just an American story, of course.
Demand for natural gas is increasing worldwide, particularly
demand for natural gas as a base fuel for power generation and home
heating. Natural gas currently accounts for 22 percent of the world’s
energy mix, and the slice of the pie is expected to grow to 25 percent
in less than two decades. By 2025, in fact, natural gas is expected to
overtake coal as the world’s second-largest energy source, behind oil.
Countries like China, India, Indonesia, and Mexico are building
and expanding their gas distribution infrastructure as they gasify
cities. In the United States and other developed nations, the focus
is on maintaining and upgrading already extensive gas distribution
networks. And because capital flows to where there’s opportunity,
investment in these economies’ infrastructure is building swiftly.
At T.D. Williamson, we believe that rising natural gas production
is here for the foreseeable future and that its benefits will continue
to energize the larger global economy, creating win-win scenarios
for many countries. Look at how increased natural gas is creating a
manufacturing renaissance in the United States, particularly around
energy-intensive manufacturing like steel. In the petrochemical
industry, we are seeing not only the reshoring of American
companies, but strong investment from beyond its borders.
In my 15 years with T.D. Williamson, I’ve never seen
infrastructure investment rise so rapidly as it has in recent years.
Our customers are moving quickly, investing boldly, and making
big decisions. They need partners that are just as dynamic and
committed as they are, partners who can help them sustain the flow
of natural gas.
BY BOB MCGREW
VICE PRESIDENT AND
CHIEF FINANCIAL OFFICER,
T.D. WILLIAMSON
E X E C U T I V E O U T L O O K
Dynamic and Sustainable:
Natural Gas Today