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As world energy demand increases and alternative energy sources such as water, wind and solar power fail to make significant enough contributions to ease emissions from traditional fossil fuel–derived manufacturing, more countries are deferring to readily abundant, cleaner-burning natural gas to meet domestic energy requirements. The five countries with the largest natural gas reserves are (in order) Russia, Iran, Qatar, Saudi Arabia and the United States; these countries account for almost 65% of world proved natural gas reserves.
Estimates of reserves can change over time as production depletes the reserve base. New reserve additions result from exploration in new areas as well as extension of existing reserves through drilling. In regions of the world such as Russia, the Middle East and Asia Pacific, the potential to add new reserves through exploration activities is very significant. Although oil has been the historical focus of the bulk of world exploration activity, the upside potential of the natural gas resource base continues to attract the interest of the international gas majors. Lower costs, higher efficiencies and environmental advantages have made natural gas a viable energy source.
North America was the largest natural gas–consuming region in 2007, followed closely by Central and Eastern Europe and Asia and Oceania, which surpassed Western European consumption beginning in 2006. Consumption for both Asia/Oceania and the Middle East has grown significantly in the past few years and is forecast to continue further development through 2012.
In 2007, U.S. domestic natural gas production accounted for 80% of total U.S. natural gas consumption. Imports of natural gas originate mainly from Canada. Over the past few years LNG imports from Egypt and Nigeria have increased.
Overall, Western European consumption has continued to increase because of increases in demand in the industrial and power generating sectors, and steady increases in all other sectors. Currently, natural gas accounts for about a quarter of Western Europe’s total energy usage. It is expected that gas consumption will continue to increase in Western Europe.
The following pie chart shows world consumption of natural gas:
Russia remains by far the largest producer of natural gas in Eastern Europe. Approximately 25% of total natural gas output is exported to Western Europe to meet declining supply. Further expansion and development of transmission lines between Russia, other CIS countries and Western Europe will lead to further growth; however, current growth is slow.
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