Demand from increasingly thirsty energy markets is stoking near-term optimism for natural gas investment, as plentiful supply and innovative LNG solutions help governments elevate the energy source to the centre of their clean power goals. But as renewables gain increasing shares of today’s power portfolios and the US-China trade dispute persists, questions linger about the long term, according to Black & Veatch’s ‘2019 Strategic Directions: Natural Gas Report’.
The analysis finds a market in conflict: clean energy goals are driving nations toward wider adoption of natural gas as a lower emission fuel source while technology and political factors create market uncertainty. Surging global interest in gas-to-power projects is matched with further cost declines in renewable technology and increasing deployments of utility-scale battery storage to smooth intermittency issues. The US-China trade conflict, which recently included a steep tariff on US-produced LNG, clouds demand projections of the world’s largest energy consumer.
Union Jack Oil (LON:UJO), The directors believe that significant opportunities exist to invest in, or acquire, a company or companies or businesses or assets in the hydrocarbon sector.
The investment strategy will have a heavy emphasis on acquiring late stage exploration projects where planning consent has been approved for drilling wells and to acquire minority production working interests onshore and/or offshore in the UK.