Global LNG supply is set to soar over the next five years as a number of large projects in Australia come on stream and the US starts to export. The greater availability of more flexible gas supply should boost the bargaining power of consumers. In this Energy Watch, we discuss the demand and supply outlook for LNG and the likely impact on natural gas prices.
We also address the view that escalating costs of oil exploration and production will put a permanently higher floor under oil prices. In our view, costs are set to fall back as bottlenecks in the supply of equipment and machinery ease. What’s more, supply will be growing strongly as shale production expands outside the US and the scale of unplanned outages diminishes.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services