Majority of Oil and Gas Professionals Expect Climate Change Legislation to Pass Within Two Years. Despite Current Concerns About Layoffs and Expense Cutting, Exploration and Production Revenues Expected to Remain Healthy.
The United States is entering an age of plenty for natural gas, according to a survey of oil and gas professionals conducted by the Deloitte Center for Energy Solutions.
"The survey numbers are striking," said Gary Adams, vice chairman and leader of Deloitte's oil and gas practice. "The overwhelming majority of survey respondents, 84 percent, say the best days for the natural gas industry are still ahead of us, despite today's low prices."
Current industry thinking would attribute this enthusiasm about natural gas to a surge in production from unconventional formations, such as shale and coal bed methane, and to the expectation that climate change legislation will increase the demand for gas-powered electricity generation.
Adams notes the survey confirms the increasingly common perception among many energy pundits that America's energy future will become more closely aligned with natural gas than we thought just a few years ago. In contrast, oil will continue to be a dominant fuel source for transportation for many years to come, but difficulties are expected to continue when it comes to finding and producing the fuel in the future, mainly because oil is increasingly found in challenging environments such as deep water and arctic regions, or in reserves controlled by national oil interests.
"While most analysts agree that oil will remain vital for transportation, the current belief in a vibrant future for domestic natural gas -- driven by significant technological advances in the production of gases from unconventional fuel sources -- stands in contrast to the industry's thinking just a few years ago, which indicated that natural gas supplies in the United States would not grow dramatically," said Adams.
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