The global gas market continues to remain volatile amid long-term uncertainty of global demand for natural gas along with the effect of ongoing energy transition measures in the exploration and production (E&P) industry. However, global gas demand is anticipated to recover in 2025 with increases in natural gas prices. Much of this increase can be attributed to the increased demand for electrification apace with global efforts to phase out coal-fired power plants. Additional increase in demand could result from adverse weather conditions, geopolitical developments, and supply concerns, leading to a surge in gas prices. Although E&P companies have sharpened their focus on sustainable investments in the areas of renewables and technologies such as carbon capture, use, and storage, and hydrogen production to meet the 2050 global target for net zero, natural gas will remain an important source of power beyond the next decade.
Advances in innovation and further development of technologies for natural gas production will play a crucial role in achieving the net zero target by reducing greenhouse-gas emissions and decarbonizing developing markets. Moreover, a data-driven approach coupled with advanced analytics could support energy efficiency across the value chain. The papers presented here highlight uncertainties and challenges incurred during the production of natural gas and the application of innovative technologies and advancement in digitalization capabilities to ensure sustainable production. One features a robust methodology using a data-driven algorithm for characterizing liquid loading, while another discusses novel mitigation measures for downhole salt deposition in offshore gas wells. A third focuses on extending the numerical rate-transient-analysis workflow for dry gas wells by incorporating geomechanical effects.
While advancement in innovation and technology might look promising, the application of such solutions needs to be commercially viable. In view of the current sentiments around climate change alongside the sustainability mindset of investors, the upstream industry is adapting to newer business models aiming at portfolio diversification by expanding into markets beyond conventional hydrocarbons. Because profitability centers mostly around fossil fuel production, however, a balanced portfolio focusing on revenue generation from low-carbon barrels could cement the E&P industry’s license to operate.
In the next years, natural gas production will act as a front-runner and play a pivotal role in the energy transition by catering to growing energy demand, curbing higher emissions by replacing oil and coal in developing economies, bridging any outstanding demands from renewables, and providing a greener future with feedstock for hydrogen production.
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SPE 213735 Debottlenecking to Increase Gas Production With the Right Approach by Saravanavel Muthiah Ponnusamy, SLB, et al.
OTC 34805 Computational Fluid Dynamics Simulation of Factors Affecting Gas Hydrate Particle Deposition in Gas Wells by Shun Chen, China University of Petroleum Beijing, et al.
IPTC 23176 Opportunities in Utilization of Digital Twins in Unconventional Gas Fields: Enhancing Efficiency and Performance Through Virtual Replication by Nouf Alsulaiman, Saudi Aramco, et al.
