A global liquefied gas (LNG) supply glut may in the near future be offset by an instant uptick in demand, Oil Search CEO Peter Botten said Wednesday.
“The market has fundamentally changed in the past few years,” Botten stated at the Abu Dhabi Petroleum Exhibition Conference (ADIPEC).
“It has evidently been driven by oversupply but this won’t necessarily previous that long amid a burgeoning demand for LNG.”
American shale drillers upended the energy industry following years of booming production – and the U.S. really wants to sell even more of its excess gas abroad.
On Tuesday, the International Energy Firm (IEA) said the U.S. was on training to become the leading global gas exporter by the mid-2020s. In the energy watchdog’s flagship publication, the IEA stated U.S. LNG was as well accelerating a major structural shift towards even more flexible international gas marketplaces.
The U.S. shale revolution paved the way for a three-time oil selling price downturn that sent crude spiraling from a lot more than $100 a barrel in 2014 to about $60 today. That has piled pressure on the oil-dependent economies of OPEC nations and forced a round of production cuts this year.
In the meantime, China – the world’s third-largest gas buyer – is importing even more LNG as the federal government looks to be less dependent on dirty coal as part of its drive to very clear the skies.