HOUSTON — Energy executives are proclaiming a new reality this week as they meet in this longtime energy capital: Natural gas is back.
Fossil fuel companies — and some electric companies — said at the annual CERAWeek by S&P Global conference that gas is critical for feeding a predicted spike in U.S. and global demand for electricity and energy. And, natural gas companies said, the fuel is the best way to power a changing world — echoing Energy Secretary Chris Wright’s praise for resources that come out of the ground.
But industry leaders also pointed to concerns that may not be solved anytime soon, from rising material costs because of U.S. tariffs to delays from permitting and court challenges. There’s also the matter of higher natural gas prices — a trend that could boost industry profits and draw the attention of consumers as it reaches their energy bills.
“There’s a recognition within the industry that the energy transition is not going to be using natural gas just as a bridge fuel,” said Michael Smith, founder and CEO of Freeport LNG. “It’s the baseload fuel that is necessary for us to create the electrons necessary for [artificial intelligence] and for 7 billion people who don’t have, as Wright said, our lifestyle and want a piece of our pie.”
