Down the pipeline: The price of natural gas is expected to fall, hampering industry expansion
Natural Gas Distribution in the US
The Natural Gas Distribution industry has performed erratically over the five years to 2019. Revenue declined significantly just prior to the current period, in line with the shale gas boom, which resulted in a flood of domestic natural gas production. When combined with a shortage of pipeline infrastructure and export facilities, this triggered a collapse in natural gas prices. The economic significance of natural gas has grown over the past decade, with manufacturers and electricity utilities increasingly relying on natural gas as an energy source due to declining prices. Using data sourced from the US Energy Information Administration, overall natural gas consumption is forecast to climb over the five years to 2019. Over the five years to 2024, natural gas production is projected to slow, while infrastructure investments will boost pipeline and export capacity. Upstream gas extractors are therefore expected to charge higher prices on export markets, while regulatory agencies are set to belatedly raise retail rates.
The majority of companies in this industry manage gas distribution systems consisting primarily of gas mains and meters that transport gas to end users. Other companies are gas marketers that buy gas directly from the well and sell it to a distribution system, while others are gas brokers or agents that arrange for gas to be sold via distribution systems operated by other companies.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.
Table of contents
ABOUT THIS INDUSTRY
INDUSTRY AT A GLANCE
Key External Drivers
Industry Life Cycle
PRODUCTS & MARKETS
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
JARGON & GLOSSARY
Atmos Energy Corp
The Southern Company
West Texas Gas, Inc.
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