Early each year, the oil and gas industry gets to hear predictions from two of the leading historical sources of industry data. BP (formerly British Petroleum) has had its world-leading economists publishing free statistical data and forecasts since the 1950s and its annual Energy Outlook is widely respected throughout the industry. Likewise, the U.S. Energy Information Administration puts out annual data and has been the American government’s primary source of information since the 1970s oil crisis.
In February, BP released its 2018 Energy Outlook and it came with some staggering predictions. First, BP says the U.S. will grow its lead in oil and gas production, and will relatively soon become a net exporter of oil and gas. America is both the largest producer and user of oil, so American oil exports are not going to ever be particularly significant. Natural gas exports, on the other hand, are going to be a huge deal for America. BP sees the U.S. and Qatar as the world’s dominant exporters of liquefied natural gas (LNG), accounting together for over half the world market. China and other Asian countries will be the primary customers for this gas, with Europe also being an important customer.
The U.S. Annual Energy Outlook 2018 was also released in February, and it contains some more granular information on the United States. The EIA expects on-shore tight and shale gas to continue booming. Offshore and non-shale production will be reduced to almost a footnote. In 2050, the EIA thinks that more than 75% of all American natural gas will come from unconventional sources. By far, the bulk of this production growth will come from what the EIA calls “the East,” which primarily means the Marcellus and Utica plays. The EIA says these plays have “large underdeveloped resources” that will be tapped as technological advancements and improved industry practices lower the cost of production. Much of this production will be exported as America becomes a natural gas superpower.
Cimmaron Land has been helping companies get into the Marcellus and Utica shale plays for years, and we know how to help producers reduce their costs by avoiding friction with landowners. If you want to operate in Pennsylvania, Ohio, or West Virginia, please email or call our experts at (412) 212-7517.
In February, BP released its 2018 Energy Outlook and it came with some staggering predictions. First, BP says the U.S. will grow its lead in oil and gas production, and will relatively soon become a net exporter of oil and gas. America is both the largest producer and user of oil, so American oil exports are not going to ever be particularly significant. Natural gas exports, on the other hand, are going to be a huge deal for America. BP sees the U.S. and Qatar as the world’s dominant exporters of liquefied natural gas (LNG), accounting together for over half the world market. China and other Asian countries will be the primary customers for this gas, with Europe also being an important customer.
The U.S. Annual Energy Outlook 2018 was also released in February, and it contains some more granular information on the United States. The EIA expects on-shore tight and shale gas to continue booming. Offshore and non-shale production will be reduced to almost a footnote. In 2050, the EIA thinks that more than 75% of all American natural gas will come from unconventional sources. By far, the bulk of this production growth will come from what the EIA calls “the East,” which primarily means the Marcellus and Utica plays. The EIA says these plays have “large underdeveloped resources” that will be tapped as technological advancements and improved industry practices lower the cost of production. Much of this production will be exported as America becomes a natural gas superpower.
Cimmaron Land has been helping companies get into the Marcellus and Utica shale plays for years, and we know how to help producers reduce their costs by avoiding friction with landowners. If you want to operate in Pennsylvania, Ohio, or West Virginia, please email or call our experts at (412) 212-7517.
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