With a global gas glut that is estimated to take five years to clear, the big oil companies are developing new markets to boost demand, signing deals to supply fuel for cruise liners, container ships and trucking companies. Investing heavily in massive production facilties that chill natural gas to a liquid for exporting, especially in Australia, which is positioned to become the leading exporter, the global energy companies are banking on a rise in liquid natural gas (LNG) as a marine fuel. Research by IHS, an information and analytics company, forecast LNG demand in trucking and shipping to grow to 10% of all traded LNG by 2030. In doing so, Big Oil hopes to boost demand by enough to drag prices of liquefied natural gas out of the doldrums. The biggest challenge facing these companies, however, will be convincing consumers they can afford it.
With a global gas glut that is estimated to take five years to clear, the big oil companies are developing new markets to boost demand, signing deals to supply fuel for cruise liners, container ships and trucking companies. Investing heavily in massive production facilties that chill natural gas to a liquid for exporting, especially in Australia, which is positioned to become the leading exporter, the global energy companies are banking on a rise in liquid natural gas (LNG) as a marine fuel. Research by IHS, an information and analytics company, forecast LNG demand in trucking and shipping to grow to 10% of all traded LNG by 2030. The biggest challenge facing these companies, however, will be convincing consumers they can afford it.