There’s far more to the pure fuel sector than Russia, and traders are interested by which nations produce the many of the gas. Learn on for a have a look at the highest 10 pure gas-producing nations in 2022 primarily based on Enerdata research.
1. United States
Manufacturing: 1.03 trillion cubic meters
The US is by far the biggest producer of pure fuel on this planet, representing practically 1 / 4 of worldwide pure fuel manufacturing. Its output has elevated by greater than 350 billion cubic meters up to now decade owing to the rising value of coal, and developments in extraction know-how akin to horizontal drilling and hydraulic fracturing, often known as fracking.
Along with being a significant pure fuel producer, the US can be by far the biggest consumer of the gas. In 2022, US demand for pure fuel totaled 881 billion cubic meters, primarily for residence heating and producing electrical energy. Within the first half of 2022, Reuters reported that the US turned the world’s largest exporter of liquefied pure fuel (LNG) because the nation elevated shipments to Europe attributable to Russia’s battle in Ukraine.
Extra lately, the low-price, oversupplied market setting for pure fuel has prompted US producers to curtail output. In keeping with the Power Data Affiliation (EIA), this can probably result in decrease general pure fuel manufacturing for 2024. “Forecast US dry pure fuel manufacturing averages 103 Bcf/D in 2024, down barely from 2023. Manufacturing will increase to 104 Bcf/D in 2025, pushed by anticipated progress in related pure fuel manufacturing within the Permian Basin and progress in LNG export demand,” reported the EIA.
2. Russia
Manufacturing: 699 billion cubic meters
Because the second largest exporter and the following largest producer of pure fuel on this planet, Russia additionally holds the biggest-known natural gas reserves on the planet. The nation’s state-owned vitality group Gazprom reportedly holds a 16.3 % share of worldwide pure fuel reserves. Novatek is one other of the nation’s most important fuel producers.
“Traditionally, manufacturing was concentrated in West Siberia, however funding has shifted up to now decade to Yamal and Japanese Siberia and the Far East, in addition to the offshore Arctic,” according to the International Energy Agency.
Europe’s rejection of Russian pure fuel merchandise result in a 41 % decline in revenues for the nation’s producers within the first three quarters of 2023, reported Reuters.
3. Iran
Manufacturing: 244 billion cubic meters
Iran is the third largest pure gas-producing nation, representing about 6 % of worldwide output. The Center Japanese nation ranks second when it comes to pure fuel reserves. Nevertheless, its pure fuel infrastructure is way behind the highest two pure fuel producers. In 2022, Iran’s pure fuel output was solely a couple of third of Russia’s and 1 / 4 of that of the US.
“Given rising international demand for fuel, and Europe’s want to exchange imports from Russia, Iran probably hopes to seize a share of the worldwide fuel market going ahead, though this could require large investments and capital that it presently lacks,” as per Banafsheh Keynoush, a fellow on the Worldwide Institute for Iranian Research and a scholar with the Center East Institute.
Iran’s present pure fuel manufacturing capability stands at 1 Bcm/d. There are plans to add one other 500 million cu m/d in capability by 2029. Turkey and Iraq are main importers of Iranian pure fuel, whereas Turkmenistan and Armenia have swap offers with Iran.
4. China
Manufacturing: 219 billion cubic meters
In recent times, China’s authorities has incentivized the transition from coal to pure fuel to scale back air air pollution and meet emissions targets. Its pure fuel output has practically doubled up to now decade, however China nonetheless depends on imports to fulfill about half of its demand. Australia, Turkmenistan, the US, Malaysia, Russia and Qatar are a few of its biggest providers.
“In March 2022, China’s authorities launched its 14th 5-Yr Plan (2021-25), which units the home pure fuel manufacturing goal at 22.3 (billion cubic toes per day) by 2025, or 3.0 (billion cubic toes per day) greater than home manufacturing in 2021,” according to the US Energy Information Administration (EIA).
For 2023, the nation’s pure fuel manufacturing is anticipated to complete 230 billion cubic meters. Unconventional fuel sources akin to shale, coal-bed methane, and pure fuel hydrates accounts for an estimated 43 % of China’s complete fuel output.
5. Canada
Manufacturing: 205 billion cubic meters
Canada holds 83 trillion cubic feet of proved pure fuel reserves, and the Western Canadian Sedimentary Basin (WCSB) is the prime supply of nearly all of Canada’s pure fuel manufacturing. Along with the WCSB, offshore fields close to Newfoundland and Nova Scotia, the Arctic area and the Pacific coast maintain important pure fuel reserves.
Canada can be a top natural gas exporter, relying completely on pipelines, with the US as its solely buying and selling associate. In 2022, 99 % of all US pure fuel imports got here from its neighbor to the north. The truth that Canada lacks LNG infrastructure makes it an unlikely potential source for assembly Europe’s pure fuel wants in lieu of Russia.
As with the US, Canadian pure fuel producing firms are going through lower demand from milder winters, leading to oversupply and decreased pure fuel costs within the 2023/2024 winter season.
6. Qatar
Manufacturing: 170 billion cubic meters
Qatar is the sixth largest pure fuel producer and hosts the third largest proved pure fuel reserves on this planet. The vast majority of its reserves are positioned on this planet’s largest pure fuel subject, the offshore North Field, which it shares with Iran.
The Center Japanese nation additionally ranks because the third largest pure fuel exporter and is third on this planet in LNG exports as of October 2023. In recent times, Qatar has made strikes to capitalize additional on its sources in an effort to broaden its footprint within the worldwide pure fuel market. Statista reports that state-owned Qatar Petroleum is trying “to extend its LNG export market to compete with Russian LNG deliveries.”
7. Australia
Manufacturing: 162 billion cubic meters
Since 2009, Australia has added 113 billion cubic meters of pure fuel manufacturing. Almost all of Australia’s pure fuel sources are positioned within the large fuel fields on the North West Shelf, “offering feedstock to seven LNG tasks.”
Australia’s LNG exports have grown exponentially over the previous decade as a number of new manufacturing amenities have come on-line. At the moment, Australia has the second largest operating LNG export capacity on this planet.
In late 2023, main Australian vitality firm Santos stated it expects a decline in its pure fuel manufacturing for 2024 as its Bayu-Undan offshore gas field within the Timor Sea is nearing depletion.
8. Norway
Manufacturing: 128 billion cubic meters
Norway is the world’s eighth largest pure fuel producer and third largest pure fuel exporter. The Scandinavian nation has understandably changed Russia as the foremost provider to the European pure fuel market. In 2023, Norway reportedly accounted for 30.3 percent of pure fuel equipped to the EU.
Norway’s pure fuel firms have ramped up manufacturing in response to elevated demand, and in mid-2023 the federal government gave the green light to 19 oil and fuel extraction tasks within the nation. Nevertheless, in early 2024 there may be some concern the trade could face headwinds from proposed local weather change rules that will institute a ban on new export projects within the Barents Sea.
9. Saudi Arabia
Manufacturing: 105 billion cubic meters
The ninth largest pure gas-producing nation, Saudi Arabia has seen its output improve by greater than 10 % within the final 5 years to a report 105 billion cubic meters of the vitality gas.
Mordor Intelligence reports that this manufacturing progress was due largely to elevated improvement of standalone pure fuel wells. State-run Saudi Aramco has awarded contracts to vitality firms trying to develop the nation’s largest unconventional fuel subject, Jafurah, positioned close to the Persian Gulf.
At the moment the nation doesn’t export its pure fuel manufacturing; nonetheless, the federal government plans to start pure fuel exports by 2030. According to the EIA, Saudi Arabia is working to exchange “crude oil, gas oil, and diesel-powered electrical mills with pure fuel and renewable vitality era by 2030, which can probably improve home pure fuel demand.”
In late 2023, Saudi Arabia started investing in the LNG market with Saudi Aramco shopping for a stake in MidOcean Power, which is about to amass pursuits in 4 Australian LNG tasks.
10. Algeria
Manufacturing: 102 billion cubic meters
Rounding out the highest 10 pure gas-producing nations is Algeria. In 2022, the nation’s output decreased solely marginally by about 2 billion cubic meters over the earlier yr, however was nonetheless up by 17 billion cubic meters over 2020.
Algeria has the fifth largest LNG export capacity on this planet. Whereas its natural gas exports decreased by 10.6 % in 2022 over 2021, the determine was nonetheless up by 24 % over 2020. In 2022, practically 85 % of the nation’s exports went to feed Europe’s pure fuel demand. Italy signed an agreement with Algeria final yr to extend the quantity of pure fuel it imports from the North African nation.
From 2023-2028, the Algerian authorities expects to see its pure fuel manufacturing improve yearly by 1.4 percent.
FAQs for fuel investing
What’s pure fuel manufactured from and the way is it shaped?
Pure fuel is a combination of methane and different naturally occurring gases. As fossil fuels, each crude oil and pure fuel are shaped through the identical geological course of. It is not shocking then that the 2 supplies are sometimes discovered collectively. Pure fuel is the product of historic decomposed natural matter that combined with sediment, turned buried and was topic to immense strain and warmth over hundreds of thousands of years.
How is pure fuel produced?
Pure fuel is extracted via wells drilled into subsurface rock formations, or through hydraulic fracturing or “fracking” know-how from shale formations. Following extraction, pure fuel is separated from different liquids, together with oil, hydrocarbon condensate and water. This separated fuel then must be additional processed to fulfill particular necessities for end-use high quality and protected pipeline transmission.
What’s pure fuel used for?
Pure fuel is effectively often known as a gas for heating, producing electrical energy and powering automobiles. Nevertheless, it is also used to fabricate varied merchandise, akin to vinyl flooring, carpeting, Aspirin and synthetic limbs; as well as, it is a key element within the manufacturing of ammonia.
Is pure fuel a clear vitality?
According to the EIA, burning pure fuel for energy emits fewer greenhouse fuel emissions and pollution than different fossil fuels, because it burns extra simply and accommodates fewer impurities. The EIA additionally notes that pure fuel produces much less carbon dioxide per equal quantity of warmth manufacturing.
Is pure fuel cleaner than coal?
Though pure fuel is a fossil gas and was shaped beneath the identical situations, it’s typically pegged as a “cleaner” vitality possibility than coal or oil. The EIA states that, “burning pure fuel for vitality ends in fewer emissions of practically all kinds of air pollution and carbon dioxide than burning coal or petroleum merchandise to provide an equal quantity of vitality.”
How a lot pure fuel is left on this planet?
Pure fuel shouldn’t be an infinite, renewable useful resource; nonetheless, its laborious to find out what number of untapped sources are left on this planet. In keeping with one estimate, pure fuel reserves are ample to final one other 53 years at present consumption charges. That determine would not have in mind identified pure fuel sources beneath improvement or these but to be found in underexplored areas.
How did the Ukraine battle have an effect on fuel?
Russia was a number one provider of pure fuel to Europe previous to the nation’s invasion of Ukraine, representing about 40 % of the area’s provide. Because of the battle, vitality costs shot up each in Europe and globally. According to S&P Global, the battle has “accelerated” the globalization of the pure fuel market as Europe turns to LNG. Within the midst of this altering panorama, the US has develop into the world’s largest exporter of LNG because it stepped up shipments to Europe.
Can Europe survive with out Russian fuel?
The EU is working to section out Russian pure fuel exports by 2027. The rising international LNG market permits flexibility for European nations trying to supply pure fuel provide from producers as near residence as Norway (Europe’s greatest fuel provider), different main pure fuel suppliers in North Africa or from the world’s largest pure fuel producer, the US.
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Securities Disclosure: I, Melissa Pistilli, maintain no direct funding curiosity in any firm talked about on this article.