The purpose of this study is to quantify the natural gas resources of Newfoundland, identify production and transportation options and lay out the terms of reference of a follow up study. The ultimate objective is to create a development strategy for Newfoundland natural gas. 1.2 Global Setting Natural gas is rapidly growing in global importance both as an energy source and as a feedstock for downstream industry. This growth is driven by general economic expansion and the environmental premium placed on natural gas which is far less polluting than its main fossil fuel rivals of oil and coal.
New use is dominated by the power generation sector.
The natural gas industry is also evolving rapidly as new reserves are established and long distance transportation options are developed mainly through the use of pipelines and LNG carriers. As a result, the industry is now global in scope and is developing characteristics which are quite distinct from those of the traditional oil business. This requires business and governmental responses which are specific to the natural gas industry. On a global scale, reserves of natural gas are abundant and growing. In contrast to the distribution of reserves, production and consumption are dominated by the industrialized countries of North America and Western Europe.