The golden age of natural gas is upon us. So writes the commodities editor of London’s Financial Times in Friday’s edition of the paper.
After reviewing ExxonMobil’s all-important annual study known as The Outlook for Energy, Javier Blas concludes that overall energy demand will be “reshaped by a continued shift” towards greener energy sources, particularly natural gas.
“Less-carbon-intensive fuels, particularly natural gas, gain market share, while coal peaks and begins a decline for the first time in modern history,” the report states. In short, from King Coal to King Gas.
As Blas notes, the conclusions of the report are not self-promotion by Exxon of its priorities and its resources; “the conclusions echo talk by many energy executives, who see a growing role for natural gas in years to come.”
Major investments in natural gas fields and the acquisition of companies with extensive natural gas reserves has been the norm for several years now, a point Blas details:
The increasing importance of natural gas is behind some of the tectonic shifts in the hydrocarbon industry, including Royal Dutch Shell’s efforts to brand itself as a gas rather than an oil company; Exxon’s acquisition of US gas producer XTO Energy for $25bn last year; and BHP Billiton takeover in July of US-based gas developer Petrohawk for $12bn.
The much anticipated annual report, which was released on Thursday, is available HERE.
The complete article from the Financial Times is available HERE.