Friday, February 11, 2011

BG bullish on global gas 2020 demand outlook, plans to increase production to 1.6 million boepd, driven by Australia LNG, US Shale and Brazil pre-salt.

BG Group, in its long-term strategy update, was particularly bullish, predicting gas demand will grow 3% a year between now and 2020. The strongest increase in gas demand growth is set to come in Asia, led by China.

Key drivers of growth are going to be oil substitution in emerging economies mainly industrial, commercial and residential.

The company is on track to expand its exploration and production business by 6% to 8% on a compound annual growth rate basis out to 2020, and that the mid-point of that range — 7% — could be achieved from existing discoveries.

This growth would be supported partly by an increase in its US shale gas operations, where estimates of net production by 2015 have now increased from 100,000 barrels of oil equivalent per day to 190,000 boepd.
The company was also bullish about the potential of BG Group’s assets in Brazil’s Santos basin, BG Group raised its estimate for future net production to 550,000 barrels oil equivalent per day by 2020, a 37.5% increase on the 2010 estimate.
The company’s estimate of future net production from Australia was 210,000 barrels oil equivalent per day remained at the same level as in 2010.

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