The dramatic shift in US energy supply-demand dynamics over the past several years is impacting markets and physical commodity flows in what seems like unlimited ways, with misaligned infrastructure one of the most pronounced. LNG import terminals retooled for liquefaction; millions of barrels of oil transported via rail; refineries configured to process heavy, sour imported crude overwhelmed by domestic light hydrocarbons and directional changes along many pipelines are just a few examples.
Also see Breaking Energy coverage of this issue here.
FERC Commissioner Tony Clark raised this issue at today’s North American Gas Forum being held in Washington DC, as captured in this tweet from Breaking Energy reporter Edward Dodge:
Constructing energy infrastructure like pipelines, LNG plants, refineries or power plants requires an enormous amount of planning, permitting, contracting, financing and regulatory approval that all takes a considerable amount of time. The speed at which US energy production ramped up – both oil & gas as well as renewable power generation – caught industry and existing infrastructure by complete surprise. Energy infrastructure projects that move at a glacial pace were eclipsed by energy flows and market changes that took place at lightning speed.
The challenge corporate executives and regulators now face is how to course correct in a flexible manner that learns from the past while best positioning energy infrastructure for the new reality and uncertain future. Hopefully prudent strategies in this regard will emerge from the North American Gas Forum.
The North American Gas Forum, happening September 28-30 in Washington D.C. will focus on supply-demand dynamics in the North American and global gas markets and address many of the key issues that are a priority for leaders in the industry. A first-class speaker line-up with 45+ speakers and 7 US Congressmen are some of the highlights of the forum.For more information please visit http://energy-dialogues.com/nagf or contact the organizer.
Breaking Energy is a North American Gas Forum media partner.
