Money quote: "Key is the significantly greater role that natural gas will play in that scenario, with some estimating that demand for the product will double through 2040."
Energy Institute of Louisiana Director Mark Zappi in Lafayette says predicting where the market is going to be decades into the future is nearly impossible due to unknown political, technological and economic factors, but there is one virtual certainty: Natural gas is going to be big. Natural gas has its own environmental attributes, emitting up to 60% fewer GHGs than coal for power generation, and is an ideal source of reliable power while also supplementing intermittent renewable energy sources such as solar or wind.
“I think natural gas has got a very bright future,” Zappi says. “Every new power plant is going to be natural gas or solar, with natural gas being the predominant one that you’re going to hear about over the next 20 years.”
Onshore LA oil production has been on the decline for years. Regardless of future crude demand LA will remain important for deep water services, transportation and processing for several decades at least. However the writing is clearly on the wall that the long term future for LA is natural gas. Although state oil reserves have declined, natural gas reserves continue to be adjusted upward as companies find ways to increase recovery factors. The ongoing 100+ billion dollar of investment in chemical and LNG facilities in south LA is a good indicator of where our energy future is headed. Thanks, John. Good article.