Natural Gas Exports and Investments: A Bright Future for the Gas Distribution Industry
The natural gas industry is experiencing a period of significant growth, with ongoing increases in export volumes and regular investment in pipelines. This trend is driving the prospects of the Zacks Gas Distribution industry in the near term.
Factors fueling the growth
One of the primary factors driving this growth is the rise in natural gas exports. According to the U.S. Energy Information Administration (EIA), U.S. liquefied natural gas (LNG) exports have increased by over 50% since 2016, and are projected to continue growing in the coming years. This growth is due in large part to the shale gas revolution, which has made the United States one of the world’s largest producers of natural gas.
Utilities poised to benefit
Utilities with stable infrastructure and a strong presence in the gas distribution sector are well-positioned to capitalize on this trend. Companies like Atmos Energy Corporation (ATO), Southwest Gas Corporation (SWX), New Jersey Resources Corporation (NJR), and Consolidated Edison, Inc. (CPK) are among those that stand to gain the most.
Investments in pipelines
Another factor fueling the growth of the gas distribution industry is the regular investment in pipelines. According to the American Gas Association (AGA), there are currently over 300,000 miles of natural gas pipelines in the United States, and billions of dollars are being invested each year to maintain and expand this infrastructure. This investment is essential to ensure the safe and reliable delivery of natural gas to consumers.
Impact on consumers
For consumers, the growth of the natural gas industry and the investments being made in pipelines mean several things. First and foremost, it means a reliable and abundant supply of natural gas for heating and cooking. It also means that natural gas is becoming increasingly competitive with other energy sources, such as coal and oil, which could lead to lower prices and increased affordability for consumers.
- Reliable and abundant supply of natural gas
- Increasing competitiveness with other energy sources
- Potential for lower prices and increased affordability
Impact on the world
The growth of the natural gas industry and the increase in exports from the United States are also having a significant impact on the world. For countries that import natural gas, this trend means a more diverse and stable supply of energy. It also means that they may be able to reduce their reliance on less stable or more expensive sources of energy, such as oil or coal.
- More diverse and stable supply of energy
- Reduced reliance on less stable or more expensive sources of energy
Conclusion
The ongoing increases in natural gas export volumes and regular investment in pipelines are driving the Zacks Gas Distribution industry’s near-term prospects. Utilities with stable infrastructure, such as Atmos Energy Corporation, Southwest Gas Corporation, New Jersey Resources Corporation, and Consolidated Edison, Inc., are well-poised to gain from this trend. For consumers, this means a reliable and abundant supply of natural gas, increasing competitiveness with other energy sources, and the potential for lower prices and increased affordability. For the world, it means a more diverse and stable supply of energy and reduced reliance on less stable or more expensive sources of energy.
Overall, the natural gas industry is an exciting and dynamic space, and the ongoing growth in exports and investments in pipelines is a positive sign for the future.
