Breaking News
Get 40% Off 0
👀 Reveal Warren Buffett's stock picks that are beating the S&P 500 by +174.3% Get 40% Off

5 Natural Gas Companies Promising to Redefine Future of Clean Energy

By Ellen WaldCommoditiesMay 18, 2023 04:30
ca.investing.com/analysis/5-natural-gas-companies-promising-to-redefine-future-of-clean-energy-200566949
5 Natural Gas Companies Promising to Redefine Future of Clean Energy
By Ellen Wald   |  May 18, 2023 04:30
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
CVX
+0.71%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
SEAT
-3.33%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
SHEL
-0.28%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CMA
+0.89%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
TTE
-0.21%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
TTEF
-0.15%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
  • G7 leaders to discuss new sanctions targeting Russia's oil and gas sector, potentially impacting global oil prices.
  • Germany advocates for increased public investment in natural gas production, signaling a shift in their stance on fossil fuel resources.
  • These 5 oil and gas companies offer promising solutions for decarbonizing natural gas and reducing its environmental footprint.

Next week, the leaders of the G7 countries will meet in Japan. Traders and investors in the energy industry should take note of this meeting because there could be some significant outcomes for oil and gas.

For example, there are plans to discuss new sanctions for Russia with the aim of undermining Russia’s ability to produce oil and gas in the future. This could be bullish for oil prices in the longer run since a large amount of discounted Russian oil on the market today is keeping oil prices low, despite OPEC’s attempt to curb supply.

Another consequential outcome could be a unified endorsement of the need to invest in more natural gas production. Germany is pushing for G7 leaders to endorse public investment in the gas sector.

This seems like an abrupt change from a European country that has, in the past, supported calls to wind down investment in new fossil fuel resources. But this position is actually much more consistent with the reality that Germany, and all other industrialized countries, need fossil fuels and will continue to need them for a long time to come.

The development of renewable energy sources is still lagging far behind our global consumption, and growing economies must supply energy to their citizens and businesses. Instead of cutting investment in new oil and gas resources, industry and government should promote methods that will make the production and transportation of needed fossil fuels cleaner and more efficient.

Natural gas has long been lauded as the cleanest burning fossil fuel—in fact, switching from coal to natural gas helped the United States cut emissions from power plants while increasing the amount of electricity generated over the past fifteen years. However, the production and transportation of natural gas does contribute significant greenhouse gas emissions.

Hopefully, world leaders will endorse natural gas as a necessary fuel for the present and future of the global economy and will also endorse policies that incentivize companies to make natural gas production and transportation cleaner.

Investors with an interest in this sector should be aware that some oil and gas companies are already employing cutting-edge technologies to decarbonize their natural gas sectors. As global leaders move to craft policies that prioritize needed fuels while also protecting the environment, these methods and technologies could become more attractive to energy producers.

natural gas liquefaction is an intensive process that is necessary to transport natural gas across the sea. The process itself, as well as the transportation of the liquefied gas in very cold temperatures, creates pollution and leaves a significant environmental footprint.

Seatrium Limited (SGX:SEAT) (formerly Sembcorp Marine) has developed an array of technologies that can be applied to existing liquefied natural gas (LNG) carriers to reduce their carbon footprints.

One of the most compelling new developments is a method to re-liquify gas that reverted to gas form during transport. Typically, this gas is just wasted and contributes to air pollution, but with Seatrium’s new technology, it can be captured and returned to its liquid state while at sea. Older LNG carriers can be updated with this technology, so employing it does not even require buying new ships. In fact, Chevron Corp. (NYSE:CVX) is having its entire fleet retrofitted with re-liquefiers from Seatrium.

CMA CGM is pioneering the use of combination fuels that reduce the carbon footprint for maritime transportation. Shell (NYSE:SHEL) recently signed a Memorandum of Understanding (MoU) with CMA CGM to advance the development of low-carbon marine fuels that will help reduce the carbon footprint of LNG and oil transportation.

In addition, the two companies are cooperating to develop systems to blend natural gas and hydrogen so that existing natural gas systems can utilize more hydrogen. The idea is that blending hydrogen with natural gas reduces emissions because hydrogen does not emit greenhouse gases when it is burned.

Carbon capture and storage (CCS) technology has long been a focus for reducing the carbon footprint of oil and gas development. It has finally advanced to the point where companies are able to put it into practice. TotalEnergies (EPA:TTEF) (NYSE:TTE) is currently building an innovative CCS facility alongside an LNG project in Papua New Guinea.

Total’s CCS project will capture 1 million tons of carbon dioxide per year and inject it back into the natural gas reservoir during production. The natural gas will travel via pipeline to a facility in Port Moresby for liquefaction and export. This will reduce the carbon intensity of LNG production from the very start of production, and the carbon dioxide will never hit the atmosphere. The project is expected to come online in 2027.

These are just a few of the new technologies that show promise for reducing the carbon intensity of natural gas and other fossil fuel use. As more oil and gas companies put these technologies to use in their global operations, the carbon intensity of natural gas should decline.

At this year’s edition of Gastech 2023, which will take place in Singapore from September 5th-8th, energy and policymakers will get together to drive such innovation further.

This will help ensure that natural gas has the support it needs to maintain a prominent position in powering the global economy. It seems as though G7 countries are finally realizing that natural gas cannot be phased out as quickly as they thought, so the right move is to invest in technologies and processes to make natural gas as clean and efficient as possible.

***

Disclosure: The author does not own any of the securities mentioned.

5 Natural Gas Companies Promising to Redefine Future of Clean Energy
 

Related Articles

5 Natural Gas Companies Promising to Redefine Future of Clean Energy

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email