From the Editor

Sally Commins, editor.

Sally Commins, editor.

For such a remarkably turbulent year for the gas industry, the International Energy Agency’s (IEA) 2015 World Energy Outlook projection that gas will be the fastest growing of fossil fuels and will shortly reach production parity with coal and oil was a relief for many concerned gas industry observers.

In the IEA’s New Policies scenario – which takes into account the effects of all existing climate policies and declared policy intentions, including the pledges made by countries in the lead up to COP21 in Paris – global
natural gas use continues its upward trend, growing at a rate of 1.4 per cent each year
to 2040.

However, the International Gas Union (IGU) has argued that the report downplays the positive contributions natural gas and carbon capture storage (CCS) could make to an international energy transition, and it does not provide a long-term strategy as to what the role of natural gas could be in the global energy mix of the future.

According to the IGU, a sound energy strategy for the future should include greater use of natural gas in power generation and transport. David Carroll, president of the IGU, said “A set of sound policy frameworks and strategies should be established that allow the market place to develop and implement solutions that ensure a smooth and cost-effective transition while improving the quality of life.”

A policy that would be put to good use in domestic climate policy.

In other news, according to the latest statistics from the Workplace Gender Equality Agency, the gender pay gap in the Australian gas and oil industry is a whopping 31.1 per cent for full-time workers – and it’s getting worse, not better. What’s more, overall the energy sector is one of the lowest ranked in terms of female representation in leadership positions, with just over 5 per cent of key management positions held by women. We spoke to Women in Energy chief Ruchika Deora about the changes that need to be implemented in the gas industry in order to reduce this inequality.

Finally, we hope you enjoy our two market focused editorials from ACIL Allen executive director Paul Balfe and Westpac’s global head of market strategy Rob Rennie. These editorials were commissioned to provide informed analysis to our readers in amongst sensationalist reports on current market conditions, and provide projections on where the turbulent gas market (should) be heading in the next few years.

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