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"Demand for energy is outpacing supply growth at alarming
rates. Although some seasonal declines are normal, prices
will continue the overall trend upward."
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 | In recent years, the oil and gas
exploration activities have been starved for capital
and money flowed to “new economy” opportunities. The
reduced investment in the sector has not enabled
energy companies worldwide to replace production and
declining reserves. |
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Click to enlarge graph. |
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Large developing economies
will put new demands on energy supply as consumers seek
higher standards of living which can only be fueled by
energy consumption. Countries like China, India,
Mexico and
Brazil will rapidly increase their energy demand to fuel
continued economic growth. |
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| Natural gas in remote areas is
expensive to transport to the U.S. burner tip. The
LNG conversion and transport process adds
approximately $3.50-5.00 per MCF to the cost of
natural gas. |
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