Opportunities Synergy Natural Gas and Renewable Energy

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Opportunities Synergy Natural Gas and Renewable Energy ( opportunities-synergy-natural-gas-and-renewable-energy )

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Demand Significant uncertainty also exists on the demand side. It is very likely that U.S. gas demand will change and grow in the coming years for several reasons, including: • The United States is projected to become a net exporter of natural gas. The growing domestic supply is reducing the need for imports while low domestic prices have prompted interest in exporting substantial volumes of LNG. • The electric power sector’s consumption of natural gas is likely to continue increasing as further coal-to- gas fuel switching occurs and new natural gas plants continue to be built. • Greater deployment of natural gas transportation technologies would increase the currently marginal gas consumption by the transportation sector. If realized, these consumption possibilities may have considerable effects on future gas demand, with corresponding effects on the ultimate length of domestic gas supply. Additionally, these possibilities are interdependent on each other and will have unique impacts on overall gas market dynamics. Simple calculations of resources divided by production omit the non-trivial factor of market economics and prices in determining levels of supply and demand. Conclusion Clear and accurate estimates of natural gas resources are a vital foundation for policymakers, regulators, and industry stakeholders to develop successful long-term plans, policies, and investments. Significant uncertainties exist on both the supply and demand side. Much of this uncertainty will likely be reduced as unconventional gas production matures and industry trajectories crystallize. Until then, prudent risk and uncertainty analysis will help inform robust decision making. 11

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