Quote:
Originally Posted by SeeGeeWhy
Why?
They'll need someone to burn all of the excess natural gas that's being produced by the "fracking revolution" and the Obama administration has completely set the table to replace the majority of US grid electricity with natural gas fired plants instead of coal. Increasing electrical demand will completely increase natural gas demand - a very good thing for oil companies in North America as we have several gassy basins, and not enough consumption.
US liquids demand has been quite flat and declining for some time now... and projected to continue. "Mautre economy" effect (read: outsourcing economy). Still plenty of demand for liquids coming from everywhere else OECD countries have pushed the production to meet consumption to.
Take a look at BP's 2014 energy outlook. Most of the growth in energy demand comes from power generation and industrial demands, not transportation fuel needs. Slides 10 shows pretty clearly how industrialization is driving energy demand growth... and slide 16 shows very clearly how there is a massive decline in expected coal and oil consumption with a marked increase in dry gas consumption (and the joke of it all) a HUGE gain in renewables. |
Cool, but I meant for refinement into gasoline. More electric cars on the road mean less retail sales of gas. I'm sure, as you've stated, there's other areas of opportunity for said companies.