Black & Veatch's Strategic Directions in the North American Natural Gas Industry report identifies key challenges and opportunities within each segment of the value chain. Learn more at http://bit.ly/1cpX6xq Transcript: Optimism for sustained growth continues across all segments of the natural gas value chain according to Black & Veatch's 2013 Strategic Directions in the North American Natural Gas Industry report. However, realizing the full potential of North America's vast natural gas resources will require the industry to overcome challenges that affect each component of the value chain. Beginning with the Upstream segment, an uncertain regulatory environment has slowed the development of new pipeline capacity to support emerging shale gas plays. With few options to move shale gas to market, producers are increasingly looking to implement commodity enhancement programs, such as liquefied natural gas or compressed natural gas production. The discovery and production of vast natural gas reserves across North America has had a profound impact on the pipeline industry. While new capacity is a critical need for high-demand centers and developing shale plays, the costs associated with maintaining now underutilized capacity are straining finances and making it difficult for pipelines to attract capital. At the same time, the increasing reliance on and forecasted demand for gas in the electric generation industry have created new challenges associated with gas reliability and capacity and with determining who should pay for new infrastructure to support power generation. Increasing demand for natural gas from power generators, the need for new pipeline capacity, and system wide investments to ensure the safety and integrity of physical and information assets, all add to the cost of natural gas services for consumers. Low U.S. prices and strong global demand create tremendous incentives to invest in LNG export capacity. Asia is the most likely market for U.S. LNG. Recently prices in Asia have been above $15 per million British thermal units, while European prices have been closer to $10. This year's report shows that growth and optimism for sustained growth continue. Improving technologies, from drilling applications to monitoring and data acquisition, are enabling the industry to better manage assets, reduce costs and be better positioned to meet evolving regulations.

• published: 30 Oct 2013
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