Natural gas critical to Europe’s future energy supply

Remarks by ExxonMobil Gas & Power Marketing vice president Richard Guerrant at the FLAME 2010 conference.

Amsterdam, The Netherlands (2 March 2010) -- Richard Guerrant, vice president of Europe, Russia and the Caspian for ExxonMobil Gas & Power Marketing Company, presented the following remarks today at the FLAME 2010 conference:

“Natural gas must be a fundamental part of the future energy solution. Not only can it help meet CO₂ emissions targets, but it can provide the proven flexibility and reliability needed to ensure security of supply for Europe.

“Economic activity is a fundamental driver of energy demand. Our long-term Energy Outlook shows that economic growth will recover and return to pre-recession growth rates. Total global energy demand through 2030 is expected to rise by about 28 billion barrels of oil equivalent.

“Natural gas has a number of benefits as a source for our most important demand sector: power generation. Quite simply, a gas-fired power plant can reduce CO₂ emissions by close to 60 per cent compared to a traditional coal plant. 

“And although wind power doesn’t emit CO₂, the wind doesn’t always blow. So when it’s calm, the electricity grid will require reserve power and nuclear doesn’t have the flexibility to be a suitable option. The greater flexibility of gas-fired plants makes them a better choice to meet this growing requirement.

“The greatest source of future energy is finding ways to use energy more efficiently. Our Outlook shows that energy saved through efficiency gains is likely to be nearly twice the growth in energy demand.

“Looking at the supply/demand picture for natural gas, in Europe, conventional local production continues to decline, driving growth in imports from about 45 per cent in 2005 to about 70 per cent in 2030. This will result in more imports from Russian and Caspian countries, as well as more LNG and some unconventional supplies.

“Our industry has been saying for years that the gas market will become global. As new gas supplies come on stream, we’ll see global gas flows shift to meet market needs. We know these new sources will be challenging to bring on stream, but our industry has a proven track record of being able to do it.  All of the data demonstrate that Europe will continue to have plenty of supply options going forward…and with growing diversity.

“Energy efficiency and carbon emission reduction plans are very important global priorities. These priorities can be achieved with natural gas a growing part of the solution, not only for today, but tomorrow.”

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