Overview

Risks, Opportunities, and Expectations: The Future of Natural Gas: A Survey of North American Gas Industry Thought Leaders

To complement CERA's view of the natural gas market of the future and to better understand the views of senior gas executives, CERA conducted a formal gas industry survey in 2005 and 2006. The results shed new light on the risks, opportunities, and expectations of the key decision makers in the natural gas industry. Distilling some of the key insights from the survey results, a majority of respondents felt that

* Liquefied natural gas (LNG) imports were certain to grow, but would not dampen gas prices.
* LNG would not significantly alter the transaction practices in the North American market.
* Market prices have not been based purely on market fundamentals. Participants likewise believed that psychological and other factors have a great impact on market prices.
* Their companies would grow faster than the organic growth rate of the broader natural gas industry.
* Increased shareholder value was dependent on expanding enterprises activities through a combination of mergers and acquisitions, asset acquisition, wider margins, and organic growth.
* Their companies were unlikely to venture into other sectors of the gas value chain.
* A merger was certain to be in the future for companies, although few expected a hostile merger.
* Expanded land access for gas drilling and expanding Federal Energy Regulatory Commission authority to approve pipeline and LNG siting were the most important policy imperatives for the gas industry.