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China Natural Gas drive may cut oil demand by a tenth

04 Mar
China Natural Gas drive may cut oil demand by a tenth

http://www.globalfundexchange.com/blog/2013/03/04/china-natural-gas-drive-may-cut-oil-demand-by-a-tenth/

Nearly 1.5 million natural gas vehicles on the road could replace the equivalent of 840,000 bpd of oil by 2030 – all part of a plan to increase gas use nationwide

China’s drive to fuel moe vehicles with cleaner burning natural gas could reduce oil demand by nearly one tenth (put in perspective – that is equivalent to Turkey’s total oil consumption). Given that Beijing and other major cities are suffering under astronomical levels of toxic air pollution, this could indeed be a welcome shift in policy that reduces pollution and at the same time reduces its dependency on costly oil imports and dependency on coal.

China last year had 1.48 million vehicles driving on natural gas, up 48% on the previous year. The vehicles, mainly taxis, buses and trucks run on both compressed natural gas (CNG) and liquefied natural gas (LNG). LNG, gas that is super chilled to liquid form, is more efficient an can nearly treble a vehicle’s driving range as compared to CNG.

An update from Anric Blatt in Doha, Qatar

The dynamic gas rich gulf state of Qatar, well known for its gas reserves, high profile aquisitions and host country of the 2022 FIFA World Cup, already flew one of it’s A340′s to London in 2009 on GTL (Gas to Liquid) fuel blends.

Yesterday walking through the lobby at the Four Seasons in Doha, Qatar we noticed ExxonMobil delivering its ‘Outlook for energy – a view to 2040′ which states that natural gas, which is the fastest growing major fuel, is expected to overtake coal by 2025 as the second most used fuel. Demand for natural gas will increase by about 65% through 2040.

Yet back home in the US, where natural gas prices are some of the lowest in the world due to an abundant over supply thanks to recent shale developments, we are still dillydallying around with policy, incentives and old technology.

Download the entire ‘Outlook for energy – a view to 2040′ report

by Anric

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