U.S. Markets for Imported Natural Gas
U.S. energy markets are very large in terms of global energy consumption and the U.S. is a large net importer of both oil and gas. The dynamics of the U.S. energy supply and demand balance, therefore, will be the determining factor for future crossborder gas trade. U.S. primary energy consumption will increase at about one percent annually over the long term with natural gas consumption increasing at about one-half that rate. The potential growth markets for gas are commercial, industrial, and especially electric utility uses. Some large, new, environmental applications have the potential to increase this growth but are dependent upon policy changes rather than economic competition. The portfolio of gas sources which currently make up the U.S. gas supply will have to be supplemented by new initiatives. By the year 2010, new initiatives will be needed to provide one-third of the required supply. Among the new initiatives, additional Canadian gas exports from frontier or unconventional resources will figure prominently. Of common interest to both U.S. domestic and Canadian producers is the confidence that potential gas users will have in continued reliability of supply and stability of price of the portfolio of gas required to support long-term investments in gas-using facilities.