Best Research Ideas

Energy 2020 and Beyond Update: Global Natural Gas – Growing Pains

—Iain Reid, Senior Equity Research Analyst, Global Integrated Oil
—Subash Chandra, Senior Equity Research Analyst, Oil & Gas Exploration & Production
—Laban Yu, Senior Equity Research Analyst, Chinese Oil & Gas Exploration & Production
—Biju Perincheril, Senior Equity Research Analyst, Oil & Gas Exploration & Production
—Brendan Warn, Senior Equity Research Analyst, Integrated Oil
—Laurence Alexander, Senior Equity Research Analyst, Chemicals & Clean Technology

Jefferies’ Global Energy Team updated the firm’s long-term global outlook for the natural gas industry. Despite a weak
2012 for the global gas market, we believe there are reasons to remain optimistic. Natural gas remains the vital
commodity that will drive a revolution in the global energy mix over the coming decade. With high demand growth
forecasts and new supply sources opening up, Jefferies foresees gas displacing coal and oil in the medium to long
term. Jefferies estimates that natural gas is likely to remain the fastest-growing fossil fuel, the base case being an
annual global demand growth rate of 2.7% to 2020. We include a thorough geographical breakdown of areas of
growth within the market and companies poised to benefit from these trends.