The Chevron Corp. and Odessa oilman Kirk Edwards say liquefied natural gas is an indispensable element in supplying the world’s long-term energy needs and that the Permian Basin should be a big part of that scenario.
Having been a principal sponsor of the recent LNG 2023 conference in Vancouver, Canada, a Chevron executive said LNG is a lower carbon alternative to coal in the generation of heat and electricity.
Noting that natural gas becomes easier to store and transport when it’s lowered to minus-260 degrees and made into LNG, the executive said the world’s population will grow by two billion by 2050.
“The U.S. Energy Information Administration predicts a nearly 50-percent increase in global energy use and natural gas is one solution that can provide reliable, lower carbon energy at scale,” said Chevron Global Gas President Freeman Shaheen from Houston. “Increasing production in the Permian Basin and the Eastern Mediterranean can help keep pace with the demand.
“And we can’t stop there. Worldwide, natural gas and LNG resources can be plentiful with investment and partnership. There is enough gas around the world that can be developed to displace coal, but it takes time. It’s not going to happen overnight.”
Shaheen said natural gas currently powers one-third of America’s energy consumption and globally it represents nearly 20 percent of electricity generation.
Edwards agreed with Chevron’s assessment as to the future demands for LNG “with one caveat.
“That would be the new political tool that LNG has become as seen from the Russian war in Ukraine and the resulting lockout of Europe from Russian natural gas production,” said Edwards, who is one of the Texas Panhandle’s largest natural gas producers. “In the wake of the war the United States promised Europe that it would take on the role to supply them with LNG and keep them heated during their very harsh winters.
“Unfortunately there is not enough takeaway capacity in the U.S. to fulfill that promise, but there appear to be many new plants under construction and announced to do just that,” he said. “The U.S. and the Permian Basin in particular are uniquely positioned and blessed with their resources to be able to fulfill that promise.
“That is if we can just do our job and produce the energy needed and not have to deal with all the red tape that the current administration and so-called environmental activists keep throwing out as roadblocks in front of that mission to protect our friends overseas.”
