Is Natural Gas Demand Set to Boom?
At a recent petrochemical conference in Pasadena, Exxon Mobil (NYSE:XOM) predicted that by 2040 natural gas will be used to generate 25 percent of the world’s electricity, and overtake coal to become the second most popular fuel source after oil. Lynne Lachenmyer, a senior vice president at Exxon Mobil, claimed that natural gas “is penetrating into the power sector, which has been predominantly coal in the past. We see it making tremendous inroads there.”
Exxon has calculated that global demand for natural gas will increase 65 percent over the next 30 years, and eventually exceed coal as a source of energy.
Lachenmyer said “we see a lot of people looking at natural gas as a form of transportation fuel, so you’re beginning to see compressed natural gas or liquefied natural gas applications for fleets within large communities. Its growth rate is higher than the balance of the energy mix, so it’s basically increasing its market share on an annual basis.”