| In the 1990's, analysts predicted gas, because of its clean fuel advantages, would trade closely to No. 2 distillate. However, in 2006 and 2007, gas traded at a discount to heavy fuel oil. With oil prices at such premiums, consumers are anxious to find and access natural gas. |
|
Outlook
The growing power needs of fuel-oil-dependant economies and the economic challenges they face in supplying that demand growth from oil-fired power plants has dramatically increased the desirability of introducing natural gas into the primary energy mix to displace distillate fuel through refitting of existing oil-fired plants and construction of new gas-fired power plants to meet incremental peak and annual load growth.
With markets paying, in many instances, more than $14/MMBtu for oil-derived fuels, wide margins are driving second-tier gas producers and medium-scale LNG technology proponents alike to mobilize quickly in order to capture profit opportunities resulting from high oil prices by establishing medium-scale LNG supply chains in a space presently unpopulated by the international oil companies.
Our data module in Excel format contains relevant information on 156 oil-fired power plants surveyed by the Virtual Energy Library worldwide. |
|
Upstream Natural Gas Statistical Survey
Global Gasification
