The population of the world continues to grow, as does the average
standard of living, increasing demand for food, water and energy and placing
increasing pressure on the environment. The population of the world doubled
from 3.2 billion in 1962 to 6.4 billion in 2005 and is forecast to grow to 9.2
billion in 2050.
Supplies of oil, gas, coal and uranium are forecast to peak as reserves
are depleted. At the same time, fear of climate change is putting pressure on
the energy sector to move away from carbon burning to nuclear, solar and other
environmentally friendly energy sources.
Natural gas, a mixture of mostly methane, ethane, propane and butane,
constitutes between 20% and 24% of the world's primary energy. Natural gas is
used in the generation of electricity, for domestic heating and cooking, and in
manufacturing. It is also a major feedstock to the chemicals and fertiliser
industries.
According to the 2007 BP Statistical Energy Survey, World 2006 proved
natural gas reserves were 181 trillion cubic metres. The countries with the
largest gas reserves are, in order, Russia, Iran, Qatar, Saudi Arabia, the
United Arab Emirates (UAE), the USA, Nigeria, Algeria and Venezuela. National
Oil companies control more than 50% of the world's gas reserves.
Wood Mackenzie estimated the world's unconventional gas reserves as coal
based methane (960 tcf), tight gas sands / shale (1,500) and gas hydrates (3
billion).
According to the 2007 BP Statistical Energy Survey, world 2006 natural
gas production was 2,865 billion cubic metres. Worldwide, gas production is
increasing by about 7% per year. In 2006, the largest gas producers were, in
order, Russia, the USA, Canada, Iran, Norway, Algeria, United Kingdom,
Indonesia and Saudi Arabia. Qatar is expected to become the third biggest gas
producer. Russia's gas production is expected to decline unless there is
significant investment, now mooted for the Yamal (first production 2011) and
Shtokman (2013) fields.
Rising gas prices, improvements in technology and economies of scale
mean that LNG can now compete with pipeline gas. This will allow countries such
as Qatar, Trinidad and Nigeria to increase production. However local objections
are causing hold-ups in the construction of LNG terminals in consuming
countries such as Italy and the USA.
In November 2006, NATO warned against a potential gas OPEC comprising
Russia (supplies 24% of European gas), Algeria (10%), Qatar, Libya, Iran and
Central Asian countries. Norway provided 13%. Since then Russia has continued
to exert pressure on Europe, particularly the Ukraine and Belarus, while
building pipelines and relationships with former Soviet republics and
discussing cooperation with Egypt, Libya, Algeria, Nigeria and Venezuela, as
well as Italy. A number of major gas pipeline projects are under consideration
or construction:
- Iran to India undersea pipeline
- China's West-East pipeline carrying gas from Turkmenistan and
Kazakhstan
- the EU's Nabucco pipeline from the Caspian region to Austria
- Russia's North Stream pipeline under the Baltic Sea to Germany
- Russia's South Stream pipeline from the Caspian through Bulgaria to
Austria and Italy
- Canada's pipeline from Alaska to the USA
- the IGI and TAP pipelines between Turkey and Greece
- the Galsi pipeline from Algeria to Italy
- a pipeline from Nigeria to Europe
According to the 2007 BP Statistical Energy Survey, world 2006 natural
gas consumption was 2,851 billion cubic metres. The largest gas consumers were
the USA, Russia, Iran, Canada, United Kingdom, Germany, Japan and Italy.
European Union (EU) consumption was more than 16% of the world total, second
after the USA. Europe currently relies on Russia for 25% of its gas and this
could increase to 50% by 2030 as new pipelines are commissioned and North Sea
production declines.
Some 22% of European electricity is gas generated. The capital cost per
KW of electricity generated from gas is 50% of that of a coal fired plant and
33% that of a nuclear plant. Since 1990, more than 13,000 gas turbine
generators, each with a capacity greater than 40 MW have been installed
worldwide. These have a joint capacity of 880 GW, 19% of the world's total.
Suez is the world's largest operator of gas generating plants with 99 plants.
An August 2007 study using satellite technology estimated oil producing
countries and companies burn off 160 billion cubic metres of natural gas, worth
US$ 40 billion per year, 5.5% of world production and little changed from 1990.
