Global gas production exceeded demand, US led liquefaction capacity race

SourceSaudi Gazette
SectorOil & Gas

OSLO — 2020 was a year that hurt demand for all fuels, and natural gas was no exception. As the year concluded, Rystad Energy has analyzed all of the year’s gas-related activity and produced a thorough report, offering some easily digestible key figures and some long-term outlook on the future of the industry. Here is a selection of our high-level key findings:2020 estimatesGlobal natural gas production is estimated to have dropped by 3.6% in 2020 as low oil and gas prices led to lower exploration and production. Rystad Energy estimates the total produced figure at around 3,918 billion cubic meters (Bcm) for the year.North America is the gas-producing region that the pandemic impacted the most, with production estimated to have dropped by 47 Bcm from 2019 to 1,103 Bcm in 2020.Despite the lockdowns, gas demand was shielded by low prices, which made gas competitive in the power sector, preventing a larger drop.

Demand for gas therefore did not fall as much as for oil, recording only a 2.5% decline to an estimated more...