Rise in global consumption
indicates renewed popularity of natural gas as an energy
resource.
GLOBE-Net, January 2,
2012-Driven by surging natural gas consumption in Asia and
the United States, global use of this form of fossil fuel rebounded
7.4 percent from its 2009 slump to hit a record 111.9 trillion
cubic feet in 2010, according to a recent Vital Signs
Online report from the Worldwatch Institute.
This increase puts natural gas's share of total energy
consumption at 23.8 percent, a reflection of new pipelines and
natural gas terminals in many countries.
The world's largest incremental increase in natural gas use
occurred in the United States, where low prices triggered a 1.3
trillion-cubic-feet increase to 24.1 trillion cubic feet, just over
one-fifth of global natural gas consumption.
But the Asia Pacific region experienced the strongest growth as
a share of 2009 consumption levels, with China, India, South Korea,
and Taiwan all experiencing demand growth of over 20 percent.
China, which surpassed Japan in 2009 to become Asia's largest
natural gas consumer, by and large led the region's growth spurt by
consuming 3.9 trillion cubic feet, or 3.4 percent of world
usage.
The former Soviet Union, which experienced the largest regional
decline in natural gas consumption in 2009, saw its demand bounce
back by 6.8 percent in 2010. Russia, the world's second largest
natural gas consumer, single-handedly accounted for 70 percent of
regional growth.
In the European Union, natural gas consumption increased by 7.4
percent; however, the EU's share of global natural gas consumption
is on the decline. The Middle East, which is home to some of the
richest natural gas resources in the world but lacks the proper
infrastructure to facilitate much domestic consumption, saw a 6.2
percent rise in natural gas demand.
Natural gas producers have responded to this revived demand with
a 7.3 percent boost in production. The United States maintained its
position as the leading source of natural gas, accounting for just
under one-fifth of the world's total production in 2010.
In Russia, which holds nearly a quarter of the world's proved
natural gas reserves, production jumped 11.6 percent. In the Middle
East, growth in production of natural gas far outstripped that of
consumption, rising by a full 13.2 percent. Last year, Qatar and
Iran alone accounted for 29.4 percent of global proved
reserves.
Reenergized global gas demand drove average prices up from their
2009 lows in nearly all markets. According to one index, the U.S.
saw a 13 percent price increase over 2009 levels. Prices remained
the highest in Asia, where consumption increased most rapidly
between 2009 and 2010. The European Union, where prices fell 6
percent, proved to be the exception to this trend, thanks to an
excess of liquid natural gas originally intended for U.S.
markets.
Two major developments this year have significantly affected the
stability of global natural gas markets. The political unrest
brought about by the "Arab Spring" slowed production in a number of
gas-producing countries in North Africa.
Additionally, the disaster at Japan's Fukushima Daiichi nuclear
plant has led countries around the world to reconsider their
dependence on nuclear power. "Natural gas is likely to play a major
role in filling the gap left by idled and phased out nuclear
plants," write report authors Saya Kitasei and Ayodeji Adebola.
"The unanticipated spike in public opposition to nuclear power
can only increase global natural gas demand in the coming
decade."
Further highlights from the study:
- The share of global natural gas trade represented by liquified
natural gas (LNG) surpassed 30 percent in 2010 for the first time
on record.
- Russia maintained its status as the world's leading exporter of
natural gas, accounting for 27.5 percent of global pipeline
trade.
- Gas flaring, or the burning of excess gas, is on the decline in
Nigeria but remains a substantial environmental threat in many
countries around the world. It is estimated
that 5 percent of global natural gas production is flared
annua