It may sound far-fetched at a time when many are worrying if Brent could rise back to $50 a barrel, but at least one analyst believes the benchmark could not only recoup all that it lost in value since the start of the year but shoot up over $100 a barrel in the observable future.

“The reality is the chances of oil going toward $100 at this point are higher than three months ago,” JP Morgan’s head of oil and gas research for EMEA, Christyan Malek, said as quoted by CNN.

The reason is simple: the cyclical nature of the oil industry. In March, before the coronavirus pandemic really hit, JP Morgan’s analysts issued a note saying the oil industry was entering a supercycle that could see the price of oil hit $190 a barrel by 2025. According to Malek, this is still a distinct possibility.

The forecast is not without a logical basis. The way cyclical industries work is that the industry produces a lot of the commodity when there is high demand for it. Eventually, supply begins to outpace demand for one reason or another. Prices then fall, the industry retreats and shrinks production to limit supply and stimulate higher prices. This brings a deficit of the commodity, which pushes prices up. This cycle repeats once every few years.

The current situation is fundamentally no different, according to JP Morgan’s analyst, who expects the oil market to swing into a deficit sometime in 2022, which would push Brent to $60. This, in turn, will motivate producers to start pumping more crude. The deficit, Malek estimates, could reach 6.8 million bpd by 2025. This is what could cause prices to climb to $100 or more.

“The deficit speaks for itself. That implies oil prices will go through the roof,” Malek told CNN. “Do we think it’s sustainable? No. But could it get to those levels? Yes.”

By Irina Slav for Oilprice.com

Source: https://oilprice.com/Energy/Energy-General/JP-Morgan-Predicts-100-Oil.html

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• Electricity Generation – The primary use for natural gas is to generate electrical power. Natural gas is the source of more than 25% of the nation’s electricity. According to the Energy of Information Administration, in 2035, 46% of new generating capacity added to the grid will come from natural gas.
• Heating – Heat produced from natural gas feels warmer than heat that is produced by an electrical pump. More than half of American homes use natural gas to provide heat, hot water and fuel for cooking. More businesses are turning to natural gas to heat offices spaces too, as it is more cost effective than electric heating pumps.
• Cogeneration and Trigeneration – Electrical energy and heating can be used simultaneously through the technological process of cogeneration, or in simpler terms combined heat and power. Trigeneration is the combination of electricity, heating and cooling. Both processes can increase energy efficiency by 75 to 80 percent.
• Transportation – Most people don’t realize that natural gas has been used to power vehicles since the 1930’s. Now, more than 150,000 vehicles on America’s roads and more than 5 million worldwide are powered by natural gas. This number is expected to increase due to the popularity of natural gas being used to fuel buses and trucks. Natural gas used in transportation reduces harmful emissions released into the air, which decreases smog pollution.
• Manufacturing – Steel and paper production uses natural gas to generate process steam for industrial applications. Natural gas is also used for petrochemicals, which are incorporated in plastics, fertilizers, synthetic fibers, cosmetics and medicines.

The many uses for natural gas have increased its use as a fuel source domestically and around the world. As society continues to use natural gas instead over other energy sources, we can reduce pollution and benefit from economic, public health and environmental benefits.

Source: https://www.api.org/news-policy-and-issues/natural-gas-solutions/natural-gas-used

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Fracking is short for hydraulic fracturing, a method of drilling used to releases natural gas from shale rock formations deep beneath the ground. Hydraulic fracturing methods have been used for decades. Advances in technology have made fracking more efficient and accessible as ever.

Myth 1. Fracking causes drinking water contamination

Since the late 1940s, the U.S. has used hydraulic fracturing as a method to release gas. The combinations of fracking and horizontal drilling lets drillers extract oil and gas from areas that, in the past, were impossible to reach.

Drinking water is located just a few feet underground, while fracking takes place more than 7,000 feet underground. Solid rock separates the oil and gas deposits from shallow ground water.

Myth 2. Fracking causes earthquakes

Federal officials say the act of fracking does not cause earthquakes. Fracking in this respect is separate from wastewater disposal. An experts from the U.S. Geological Survey told NPR, “Fracking itself probably does not put enough energy into the ground to trigger an earthquake. That’s really not something that we should be concerned about.”

Myth 3. States are not regulating fracking efficiently

States insist that fracking and wastewater disposal is done properly with the highest level of efficiency and safety. Fracking is better regulated by the state because the state understands its environment and how fracking should regulated.

“States are stepping up and doing a good job,” says federal EPA Administrator Lisa Jackson.

Source: https://www.api.org/oil-and-natural-gas/energy-primers/hydraulic-fracturing/what-are-fracking-myths

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“We expect demand to rebound to about 97 million barrels per day (bpd) by Q4 as economies come out of lockdown – a significant improvement although still down about 4 million bpd year-on-year,”

Source: https://oilprice.com/Energy/Oil-Prices/Morgan-Stanley-Expects-40-Brent-By-Christmas.html

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West Texas Intermediate crude oil, the U.S. benchmark, gained 8.12 percent to $31.82 per barrel and closed above $30 for the first time since April 8. Brent crude, the international standard, was higher by 7.11 percent at $34.81 a barrel.

WTI futures for June delivery expire Tuesday with prices having seen a sharp reversal from last month’s memorable drop below zero.

Source: https://www.foxbusiness.com/markets/oil-prices-spike-above-30-first-time-over-month

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1. United States of America 773,200,000
2. Russia 453,300,000
3. China 181,100,000
4. Iran 170,200,000

Source: https://www.citypopulation.de/en/world/bymap/NaturalGasConsumption.html

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Source: https://www.eia.gov/energyexplained/natural-gas/liquefied-natural-gas.php

The post Is natural gas a liquid or gas? appeared first on Gas and Oil Equipment.

Source: http://naturalgas.org/environment/naturalgas/

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Source : https://www.eia.gov/energyexplained/natural-gas/delivery-and-storage.php

The post Natural Gas Production & Delivery appeared first on Gas and Oil Equipment.