2020 has been a challenging year for all industries, including the natural gas industry. Due to an imbalance in supply combined with the global slowdown due to the pandemic, the natural gas industry has seen a setback, but also has a promising future on the horizon for 2021.
Utica Upstream Conference
State College, PA | October 29, 2020
LNG (Liquefied Natural Gas) exports are predicted to ramp up in 2021. Based on the rates from late summer of 2020, exports were higher in September 2020 than August 2020, and predicted to continue to increase.
A reduction in rig count is to continue in Pennsylvania. In October 2020 there were 19 active rigs in PA, compared to December of the previous year with 25 active rigs. After devastating flooding caused by a record high hurricane season, the importance of natural gas in the north is greater than ever. Active rigs in the Gulf were hit by several hurricanes this year, causing evacuations and shutdowns even before the storms hit. Shutdowns and flooding from these storms have a damaging impact on the natural gas industry, with 58% of Gulf oil production and 45% of the natural gas output sourced from these rigs.
The impact that the shale natural gas industry has on the environment has been strongly and widely debated since the first well was drilled over a decade ago. As Pennsylvania and the Appalachian Basin have increased the amount of electricity that is generated from natural gas, we have seen a positive improvement in air quality.
In recent years, the transition to natural gas has greatly accounted for a reduction in air pollution, specifically sulfur dioxide and Greenhouse Gases. Data from 2019-2020 record that Greenhouse Gas emissions were at a 25-year low. A recently proposed natural gas synthesis plant in central Pennsylvania is a nearly $500 million investment and expected to spur numerous support industries around it for its intended goal to reduce “negative” emissions. The facility will conduct Carbon Capture, Utilization & Storage (CCUS). CCUS is an important emissions reduction technology that captures carbon dioxide from fuel combustion or industrial processes.
Amerisafe Group’s field and training expertise provides a safety support solution for safety programs, auditing, inspection, compliance, and training. All Oil & Gas safety projects are overseen and/or executed by Amerisafe Group Safety Professionals.