A global future for gas

Rajnish Goswami is responsible for business development relating to the gas and power sector for Asia and the Middle East. He has led a number of assignments for international and national oil companies relating to strategy development and gas sector development.

Abdul Rahim has been President of the International Gas Union since 2009. Before his retirement from Petronas in 2008, where he worked from 1976, Dr Rahim was Vice President, Research and Technology Division.

Gas in demand

Both Mr Goswami and Dr Rahim highlight the environmental benefits of natural gas as opposed to coal as a factor that will drive demand for gas in the next 5-10 years.

Dr Rahim says “Renewable forms of electricity generation can only fulfil their potential if they are complemented by a fast response, readily storable alternative such as natural gas.

“Gas is considered the cleanest of the fossil fuels. The need to shift towards low carbon economies around the world will encourage wider use of both conventional and unconventional gas.”?

Mr Goswami also predicts the surge in energy demand from fast-paced Asian economies will play a role.

“Wood Mackenzie forecasts natural gas demand in Asia to grow by more than 4.5 per cent per annum for the next five to ten years, including growth from both the traditional markets like Japan and emerging markets like China and India.”?

Innovation and development

Technology breakthroughs in the exploration and production of unconventional gas have created a surplus of gas supply, making gas a more affordable and reliable energy source.
Dr Rahim cites the United States gas industry and how it has been affected by drilling and extraction technologies as an example that illustrates this.

“Recent innovations in the United States have made significant impacts on the gas industry, creating new dynamics and changing the global gas industry and landscape,”? he says.

“Innovation in directional and horizontal drilling and formation fracturing technologies in oil and gas fields have now been widely applied in the exploitation, development and production of unconventional gas resources such as shale gas, coal seam gas (CSG) and tight gas sand.”?

He adds that this will likely have similar impacts and progress in the near future in countries that are rich in unconventional gas resources, such as Russia, Canada, China, Australia, and Indonesia.

Regulatory collaboration

Mr Goswami and Dr Rahim have differing opinions when it comes to international collaboration on upstream regulation.

Mr Goswami says that collaboration could act as an important catalyst for growth in gas production in developing countries.

“Getting the right regulatory environment would greatly assist in developing this source in countries like Indonesia.”?

Dr Rahim, on the other hand, says that upstream industry is under the purview of government or national oil companies, and while market forces are acting rationally, there is no critical need for international collaboration.

He adds that it is more important to promote and sustain investment in the upstream industry to enable adequate gas supply and meet growing demand.

“A lack of appropriate investment in the upstream sector would create a gas market imbalance that would destabilise gas prices,”? Dr Rahim says.

A bright outlook

As the upstream industry gears up for the APPEA Conference, Dr Rahim says the future of natural gas is full of opportunity.

“Gas will continue to play a major part in the short and long-term energy solution. It will be one of the key drivers for sustainable development, as well as in promoting a more sustainable socio-economic development.”?

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