Natural gas is found in depth of the rock formations or escort with other hydrocarbon reservoirs in coal beds and as methane clathrates. Natural gas is used as a fuel for vehicles and for commercially important organic chemicals. Not only has this, it is used as a chemical feed stock in the formation of plastic. In addition, gas can be stored during the period of low demand and withdrawn in the period of peak demand. Due to the facility of gas storage, the demand of natural gas and oil in the Asia-Pacific region is increasing significantly. With the increase in the demand more upstream final investment decisions are expected to be taken which results the market growth of the Asia-Pacific region. Furthermore, the market of natural gas is undergoing into a fundamental transformation.
According to the report analysis, ‘MONTHLY GLOBAL UPSTREAM REVIEW, APRIL 2018 – ASIA LEADS WITH HIGHEST PLANNED PROJECTS COUNT’ suggests that global oil and gas production is expected to increase by around 4.0% during the period 2018 to 2022 outlook period and about, 495 planned and announced projects are expected to come online globally by 2022. Asia leads with the highest number of planned and announced projects among regions, followed by Europe and Africa. Total production is expected to increase to around 62 billion boe by 2022. Moreover, more investment in both the short and long term plans of the key players in the market will result increase in the supply chain of natural gas.
The capital expenditure regarding the projects of oil & gas entail the fixed expenditure for improved infrastructure that needs to be established by companies and organizations for drilling deeper to get more gas and capitalize on the booming demand in Asia. In the Middle East Abu Dhabi National company awarded China National Petroleum Corporation to conduct the world’s largest regular 3D onshore and offshore seismic survey which cover both onshore and offshore areas and this survey is scheduled to be completed by 2024. Whereas, Europe is also playing an auspicious role in the production of oil and gas production.
Numerous research and development programs have been conducted on the production of oil and gas which makes the availability of liquid and natural gas at a reasonable price. Moreover, the gas industry largely in the Russia region is highly condensed with the production. With the more usage of oil and gas the outlook of the market seems to be more competitive with the new investors with their financial support and bring numerous opportunities for the various countries which linked with each other in the manufacturing of oil and gas products. Therefore, with the great usage and competitive environment in the market of oil and gas the key players are investing more capital which has led to the significant growth in the market. Hence, global oil and gas production is expected to grow but majorly within the Asia Pacific region and followed by other regions.
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Ankur Gupta, Head Marketing & Communications