The global gas glut shows no signs of lessening as the industry moves into 2012, even as gas usage continues to climb, according to an article on www.powermag.com. U.S. inventories at the end of the first quarter are projected to hit levels not seen in more than 20 years.
According to the U.S. Energy Information Administration (EIA), U.S. natural gas use for power generation rose 7%, or about 515 billion cubic feet (Bcf), between 2009 and 2010 (Figure 1). Total natural gas deliveries to consumers grew about 4% to around 22 trillion cubic feet (Tcf) for 2010, while use in the industrial sector was up by 6%. The EIA also projected in its 2012 Annual Energy Outlook Early Release (AEO) that gas demand for electricity generation would grow from 7.4 Tcf in 2010 to 8.9 Tcf in 2035.
But this growth did little to offset the flood of new production.
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