In a new report the International Energy Agency forecasts former Soviet states and North America will soon be the main suppliers of natural gas globally, followed by Asia Oceania – mainly Australia – and the Middle East.

Unlike North America and other areas of the world, Europe will not be a natural gas revolution.  Instead Europe will get most of its electricity from coal. The International Energy Agency says natural gas is losing the battle in Europe’s power plants against cheap coal coming from the U.S., where the discovery of shale gas has left a huge oversupply in unwanted coal.

China is importing more natural gas by pipeline than sea for the first time, highlighting the risk to planned liquid natural gas (LNG) projects costing at least $100 billion as buyers seek cheaper supplies. The Central Asian country of Turkmenistan supplies almost all of China’s piped gas. Piped gas to China is cheaper than LNG and could jeopardize planned LNG projects in countries like Australia. China accounted for 22% of Asia-Pacific gas consumption last year and 4% of global demand.
80% of Singapore’s energy is generated from natural gas imported from neighbouring countries Indonesia and Malaysia.

The U.S. Geological Survey has estimated that the Utica Shale deposits in Ohio, Pennsylvania, and other states could hold up to 38 trillion cubic feet of recoverable natural gas, 940 million barrels of oil, and perhaps 9 million barrels of natural gas liquids like propane. The Utica lies below the similarly well-known Marcellus Shale, which is already proving to be one of the richest natural gas reserves in the world.

The US state of Pennsylvania announced it issued a permit for the construction of an electricity generating plant that would run partially on domestic shale gas. The permit allows for construction of the first power plant in the state to run on natural gas produced in the Marcellus shale play.

Some of the world’s biggest oil companies and traders are poised to export substantial amounts of crude oil from the US for the first time in decades. Shell, BP and Vitol are among the six companies known to have applied to the US government for export licenses.

US imports of light, sweet crude oil – mostly West African – will fall to virtually zero by 2014 as rising domestic shale oil production is substituted for oil. The US is now pumping more than 1 million b/d of tight oil and the hydrocarbons produced are similar to top quality grades produced in Africa.

Iraq’s crude oil output is to more than double by the end of the decade and by the 2030s it will be the world’s second-largest oil exporter after Saudi Arabia, according to an in-depth study by the International Energy Agency.

An crude oil field discovery in the Celtic Sea may produce enough to make Ireland self-sufficient or even turn it into a crude oil exporter.

China could become a new oil product exports powerhouse if all planned projects for refining capacity expansion in the country go ahead, the International Energy Agency said.

Saudi Arabia’s oil minister said his country has the ability to meet existing and future demand for oil. Ali al-Naimi told reporters that the kingdom now pumps around 10 million barrels a day, and said its production capacity of more than 12 million barrels is sufficient to meet any demand.

Canada is focusing its attention on India and other Asian countries as it seeks to reduce its dependence on the US for exports of hydrocarbons, according to the country’s Minister of Natural Resources Joe Oliver.

Turkey wants to produce at least 30% of its electricity from coal-burning power plants with a total investment of $25 billion by 2023, Energy Minister Taner Yıldız said. The country is now dependent on natural gas from Russia to produce more than half of its electricity.

Germany’s transition to renewable energy is likely to cost households €60 to €75 a year as the so-called EEG reallocation charge will rise from 3.6 euro cents to 5.3 cents per kWh in 2013. Germany’s electrical grid operators said they were increasing the charge on consumers (which finances subsidies for renewable energy) by 47%.

with h/t Tom Whipple

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