RE:RE:RE:RE:RE:RE:RE:So Frustrated"the World will continue to impose increasing demands on the sector"
WoodMac agrees with you. From earlier today --->
"...We’re forecasting much higher gas demand from power compared with two years ago. We raised our forecast for gas demand from the power sector from 2022 to reflect the difficulty the US faces in achieving its very challenging renewables build-out targets. We also edged up our forecasts for LNG exports, easily the biggest growth segment for US gas demand.
The second big upgrade came last month in our latest North America gas strategic planning outlook. It takes into account the explosive growth in data centres and AI that’s unfolding, along with the reshoring of power-intensive industries such as chip manufacturing.
We now expect total US gas demand to increase by 30 bcfd (300 bcm) by the early 2040s compared with 13 bcfd (130 bcm) previously.
Is there enough supply?
Plenty, but the issue will be at what cost. The incremental gas demand will lead to the earlier exhaustion of low-cost resources, both from liquids-associated plays and the dry gas basins of the US Lower 48. A key assumption is the decline of associated gas from tight oil towards the end of the next decade with even the Permian hitting the wall in the mid-2040s....
...How have our price forecasts changed?
Our ‘old view’ was that Henry Hub would be range-bound between US$3/mcf and US$4/mcf (in real terms) through 2045. We’re now expecting prices to hit US$4/mcf more than a decade earlier – good news for upstream producers who have experienced years of modest prices in a well-supplied market.
Beyond 2035, our modelling suggests the market gets progressively tighter, lifting Henry Hub closer to US$6/Mcf (in real terms) through the 2040s. That’s up to 45% above our forecasts of two years ago..."