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Declining crude oil prices will likely lead to reduced production, but consultants at Black & Veatch expect natural gas to meet increasing demands, particularly as new projects begin to come online in the near future.

Heightened activity has supplanted cautious optimism among those in the U.S. natural gas industry.

According to the third annual Strategic Directions: U.S. Natural Gas Industry report from Black & Veatch, that changing sentiment is underscored by its survey respondents, nearly 90% of whom expect electric power generation to dramatically increase gas consumption by 2020.

Construction of ExxonMobil’s PNG LNG Project in Papua New Guinea began in 2010 and delivered its first cargo of LNG in May 2014, ahead of schedule.

The project took over 200 million work hours to complete and employed 21,000 people at its peak.

There are 700 km of pipelines connecting the LNG facilities, which include a gas conditioning plant in Hides and liquefaction and storage facilities near Port Moresby with a capacity of 6.9 million tons per year.

The master limited partnership structure has been popular for pipeline companies for many years, and the shale boom has only intensified its usage—of the roughly 120 MLPs operating today, over 60 percent are less than five years old. But as the industry has adjusted to unconventional production and operations and construction activity assume a new normal, energy companies’ financial moves are becoming big news.

Africa’s importance as a major energy supplier will grow with the development of recently discovered oil and gas fields, most notably in West and East Africa, which will generate 8,558 miles of additional oil and gas pipelines (Table 1).

Gas producers and pipelines seem in general agreement about a Federal Energy Regulatory Commission (FERC) proposal to improve coordination between gas suppliers and electric transmission providers. But regional electric buyers such as the ISOs and RTOs are a little disappointed.

The U.S. oil and gas industry employed 1,012,800 in 2013, an increase of 30,800 from the previous year. Job growth in the U.S. oil and natural gas industry continued to rise in the first quarter of 2014, adding an additional 12,400 jobs, for a total of 1,025,200.

I’ve only been working in the pipeline engineering business for a short time, but have noticed a disparity between how the quality systems of the two main portions of the business are structured. This, even though corporate quality and construction quality systems both follow the International Standards Organization (ISO) 9001:2008 format of quality standards.

Global oil demand will grow 1 MMbpd in 2014, or about 300,000 bpd more than the IEA’s latest forecast, according to ESAI Energy’s recently published Global Fuels Outlook. The report highlights discrepancies between ESAI Energy’s and the IEA’s forecasts for demand growth and provides an outlook on petroleum product markets – and spreads to crude – through 2016.

Upstream, you have producers and gas processors that deliver natural gas to fill the growing demand for the clean-burning fuel. Downstream, you have hundreds of miles of pipeline infrastructure to deliver the gas to market.

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