Strong demand for cleaner-burning fuel in Asia continued to drive rapid growth in liquefied natural gas (LNG) use in 2018, with global demand rising by 27 million tonnes to 319 million tonnes, according to Shell’s latest LNG Outlook.
- Growing recognition of the role of liquefied natural gas (LNG) as the world tackles poor air quality and climate change
- Asian LNG imports exceed expectations again in 2018, absorbing continued supply growth
- Near-term supply growth expected to be absorbed by Europe and Asia.
- Continued need for investment in supply to meet long-term demand growth
Our Take: Good news for Asia and the rest of the world! As noted in a recent EPA report, increased natural gas use drives down air pollution. A practical solution to addressing climate change that doesn’t require joining the Paris Accord or rely on a “keep it in the ground” strategy.
Saudi Aramco CEO blasts climate campaigners’ impatience to end oil use
Nick Coleman and Alisdair Bowles, S & P Global, February 26, 2019
The CEO of Saudi Aramco, Amin Nasser, on Tuesday blasted the impatience of climate change campaigners, saying the industry needed time to become cleaner and had to do its “job” of meeting global demand. Speaking at the IP Week conference in London, Nasser said Saudi Aramco, the world’s largest corporate supplier of crude oil, was making “huge” investments in efficiency and tackling emissions, in collaboration with others. But he played down the rate of uptake of electric vehicles and said technologies such as CCS (carbon capture and storage), intended to mitigate climate change by storing CO2 underground, were not yet commercially viable and, though they would eventually “prevail,” would need time to “become commercial.” Nasser said the industry faced a “crisis of perception” and urged his audience to “push back on exaggerated theories like peak oil demand,” referring to the view that oil consumption could peak as soon as the next decade.
OPEC, allies to maintain oil output cuts despite Trump
Rania El Gamal, Reuters, February 26, 2019
OPEC and its allies will stick with their agreement to cut oil supply, pushing for more adherence despite a demand by U.S. President Donald Trump that the producer group ease its efforts to boost crude prices, a Gulf OPEC source said on Tuesday. Based on current market data, the so-called OPEC+ group is “likely to continue with the production cuts until the end of the year”, the source told Reuters.