Posted on: 10. 15. 20
2020 has been a strange and difficult time for the natural gas and oil industries. From production site shutdowns to roller coaster prices, stability is something that all natural gas production facilities look forward to, and the answers could actually be just around the corner with fall in full swing.
Here’s a look at some of the issues that have hit the natural gas industry this year and how the fall season can potentially decrease the stress that currently weighs on the natural gas production companies.
2020 Brings Higher Volume With Even Higher Difficulties
According to a report from Deloitte, US liquid natural gas (LNG) export growth has been on a steady increase since 2016. So much so, that in 2019, our national export growth exceeded 5 billion cubic feet per day.
While so much growth isn’t necessarily a negative event, the issue of failing gas prices has severely impacted how local exporters can manage their sites. In fact, higher volume with lower prices makes it difficult for local facilities to move forward on any newer projects.
How can the Fall Season Pick Up the Natural Gas Industry?
Fortunately, this fall brings us some light at the end of the tunnel. With cooler weather abound and travel restrictions beginning to lift in the United States, there is ample opportunity for the industry to push forward and continue replenishing their NGL storage units while making a profit off of local and international consumers.
Power Generation
Natural gas is an essential material for power plants that generate electricity for the masses. When natural gas is burned, it creates steam or can power up turbines with lower emissions overall.
Since prices are relatively low at this point in time, natural gas as a means of energy production makes it a top competitor in the commercial and residential markets. Increased consumption and purchasing of natural gas during the cooler months of the year can have a positive impact on the industry as long as production and overall costs continuously increase.
Residential and Commercial Demand
As we’ve mentioned, the weather is getting cooler and consumers are going to start actively seeking out ways to heat the home and workplace. We predict that this could produce a boost for the natural gas industry, but the numbers all rely on elements outside of our control like:
- The weather
- Population growth
- The energy efficiency of households and commercial users
Although the past has shown that residential consumers tend to follow regular patterns and don’t contribute to much growth, commercial powerhouses like pipelines and plant fuel consumption can help make up the difference and push for growth.
Keep Track of the Natural Gas Industry With Pro-Gas, LLC
If you’re a facility manager who’s used our products before at a site, or just someone who is interested in the progression of the natural gas industry, Pro-Gas, LLC is here to provide you with the latest updates.
We are a dedicated oil and gas equipment company that specializes in providing top-tier equipment as well as updating our readers on the state of our industry. Contact us today to learn more about our products and services.
