Outlook for oil and gas demand remains strong
Oil and gas executives say the long-term industry demand remains high, despite the spread of the novel coronavirus and other global actions.
Executives from both ExxonMobil and Shell U.S. reiterated their beliefs in a growing global energy demand during a joint meeting of the Louisiana Mid-Continent Oil and Gas Association and Louisiana Oil & Gas Association last week.
The president of ExxonMobil Fuels & Lubricants is still bullish on fossil fuels, Executive Bryan Milton said. The company expects demand for oil and gas to grow 8% and 6%, respectively, over the next 20 years.
“Even with changes coming out of the Paris Climate Agreement, there will be huge demand growth for oil and gas,” Milton told the crowd, adding they expect $21 trillion in investment needed by 2040. Much of that is expected to benefit the Gulf Coast.
Shell U.S. LNG President Frederic Phipps says the long-term demand for liquefied natural gas remains strong—despite trepidation over the coronavirus as gas continues to be the fuel of choice for cleaner energy solutions.
Phipps says the record supply of domestic natural gas has buoyed LNG prospects locally. “A growing population and rising living standards will continue to drive the demand for energy with lower emissions.”
G2 Net-Zero LNG Chairman Chas Roemer of Baton Rouge also announced plans to build the first “net zero” plant in the state along the Calcasieu Ship Channel, 3 miles north of the Gulf of Mexico.
“We plan to achieve zero emissions from the wellhead to the back of our facility,” Roemer said. “It’s technologically possible and it can be profitable. I can produce LNG at a per unit cost below most of my competitors. Every company in the world is talking about being net zero by 2050—I can be there in 2027.”
By Sam Barnes TUESDAY, MARCH 10, 2020