Market Trends of North America Natural Gas Industry
This section covers the major market trends shaping the North America Natural Gas Market according to our research experts:
Power generation to Dominate the Market
- Natural gas in power generation increased by 2.6% in 2021, although its share decreased from 23.7% in 2020 to 22.9% in 2021 globally.
- Further, renewable energy continued to grow strongly and is now 13% of total power generation. Clean energy generation increased by almost 17% in 2021, accounting for over half of the increase in global power generation over the past two years.
- Moreover, the total electricity generation in North America is 5383.5 terawatt hours in 2021 compared to 5259.7 terra watts in 2020.
- Hence, owing to the above points, the Power generation segment will likely see significant market growth during the forecast period.
United States Expected to see Significant the Market Growth
The United States is a major crude oil and natural gas producer in the world, and the country is expected to cover around 60% of the world oil demand in the coming years if the shale oil and gas production follows the same trend as it was witnessed before 2020.
Further, the LNG sector in the United States has historically received significant investments to transform the country into a central exporting hub. As of June 2020, Most of the proposed liquefaction capacity additions are in North America (599.6 MTPA), with 350.5 MTPA located in the United States, 221.8 MTPA in Canada, and 27.4 MTPA in Mexico. The only LNG export project in North America and globally to reach FID in 2020 was the Costa Azul export plant in Mexico, developed by Sempra Energy. During the forecast period, around six LNG liquefaction terminals are expected to reach the FID stage, leading to a positive market outlook in the United States.
As of 2021, approximately all offshore oil and natural gas leasing and development activity occurred in the central and western Gulf of Mexico. Thousands of platforms operate in waters up to 6,000 feet deep. A few platforms operate in depths of 10,000 feet or more.
5 of the 34 natural gas producing states accounted for about 69% of total U.S. dry natural gas production in 2020, and private players are investing in other regions to increase gas production.
Hence, owing to the above points, the United States is expected to see significant market growth in the Natural gas market during the forecast period.
