Fracking Fuels U.S. Natural Gas Production Explosion
U.S. natural gas production reached a new high in 2022, surpassing Russia and Iran, while consumption increased due to a shift away from coal and growth in renewable energy.
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Posted 9/3/2023, 3:00:00 PM
oilprice.com
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U.S. power producers have increased their electricity output from natural gas more than from clean power sources in the first eight months of 2023, as low wind speeds and high demand for air conditioners affected clean power generation; however, overall generation from coal decreased by 21%, demonstrating ongoing efforts to reduce pollution.
The Energy Information Administration reported a smaller-than-expected increase in natural gas inventories, boosting futures prices.
In 2022, coal remained the dominant source of electricity generation, accounting for 35.4% of global power, followed by natural gas and hydroelectricity, while renewables experienced significant growth with wind, solar, and geothermal representing 14.4% of total electricity generation, and nuclear energy faced a decline due to various disruptions.
Demand for coal, natural gas, and oil is expected to peak in the near future, even without new climate policies, as a result of the shift towards renewable energy and electric vehicles, according to the International Energy Agency.
Demand for fossil fuels is expected to reach an all-time high before 2030, despite progress in the fight against climate change, according to Fatih Birol, Executive Director of the International Energy Agency.
Gas prices in the US have reached their highest level in 11 months, posing challenges for the Federal Reserve in its campaign to control inflation. Factors contributing to the increase include rising oil prices, production cuts by Saudi Arabia and Russia, reduced refinery production due to hot weather, and low reserves in the Strategic Petroleum Reserve. However, prices are expected to decrease with the switch to a cheaper gasoline blend in the fall and projected global economic slowdown in 2024.
China's natural gas demand is expected to grow by 8% this year, higher than analysts' forecasts, due to recovering industrial demand and lower global prices, with LNG imports and piped gas imports also projected to increase by 10.9% and 10.7% respectively in 2023.