Both organizations openly credited shale gas for the climate success story in America. The IEA’s executive director said that “market dynamics and technological improvements matter” and that is demonstrated because America’s “abundant shale gas supplies have become a cheap power source.” The EIA said that U.S.-emissions reductions were driven largely by “substitution of less-carbon-intensive and more efficient combined-cycle natural gas generation for coal-fired generation.”
The IEA also noted that around the world there is much more room for natural gas to make its magic. Worldwide, natural gas currently generates about 25% of the electricity. China is only at 6%, though, and India is at just 5%. Both countries have been making efforts diversify their energy mix, largely to improve their air quality. As a result, it seems likely these two major world economies will see some additional switching from coal to gas in the coming years. The Financial Times reports that cheap natural gas is also driving down coal usage in Europe.
It should not be surprising given all this demand that the EIA’s natural gas production estimates remain near all-time highs. The EIA projects 73.7 billion cubic feet per day of production in 2017, while the record production in 2015 was 79 billion cubic feet per day. You can give the experts at Cimmaron Land a call if you are a landowner in Ohio, Pennsylvania, or West Virginia hoping that the natural gas under your feet could be part of the booming gas production that is improving the environment. We help the leading exploration and production companies in the region secure the acreage they need to meet world demand.