The search for supply goes global, for better or worse.
George Given is vice president at Global Energy Decisions. Contact him at email@example.com.
Over the past few years, natural-gas prices have skyrocketed, causing concern across many industries over supply shortages and the long-term viability of this important fuel. Record prices also have fueled interest in new coal, nuclear, and renewable power generation projects, just as the gas-fired merchant building frenzy has subsided, leaving many power markets with excess capacity.
On the natural-gas supply side, analysts and consumers are worried that conventional sources are tapped out. Furthermore, Canadian exports have decreased from their peak, despite the high prices.
All of these factors point to a fundamental change that is now underway, with only a few possible solutions to today’s high prices: Conserve, drill more, build new liquefied natural-gas (LNG) terminals, bring in new frontier sources, or get used to high prices.