EPRINC’s Director of Downstream, Transportation Fuels, & Natural Gas Projects Max Pyziur has published a new paper entitled “There Will Be Gas” in which he assesses the U.S. natural gas supply in light of the recent low-price environment. He writes:
“With the advent of the COVID-19 pandemic in early 2020, world and U.S. crude oil prices collapsed. Price recovery is underway but it will take time before prices recover to $40-$50/bbl. These low prices are resulting in large reductions in U.S. crude oil production and its associated gas output. However, the U.S. resource base for natural gas, both dedicated (non-associated) and associated, remains vast. Companies may go bankrupt, but the geologic formations remain. A central question for policy makers and the U.S. petroleum industry is whether the current downturn in crude oil prices, particularly if it persists for a considerable period of time, will substantially alter the outlook for large and competitively priced natural gas supplies as a feedstock for LNG. This EPRINC report evaluates the potential for the U.S. to remain competitive as a major provider of LNG to the world market in a low oil price environment and what policies, if any, should be implemented to sustain the competitive outlook for the U.S.”
Max’s paper can be found here.