Natural Gas Heads for Middle East Doldrums - Bloomberg:
"Conventional wisdom says that Middle East natural gas demand will continue to surge. In the 10 years through 2016, consumption rose by 25 billion cubic feet a day -- much more than in both the U.S., despite its shale boom, and China. BP Plc’s 2017 energy outlook sees demand rising from 47 Bcf a day in 2015 to 73 Bcf by 2035. National oil companies and liquefied natural gas exporters are both relying on the region’s appetite to justify ambitious expansion plans. But this is about to change.
The story of how we got here can be simply told. The region’s economic boom from the early 2000s on, fueled by high oil prices, led to rapid growth, the construction of new cities and demand for air conditioning, winter heating, cooking, desalinated water and all the other accoutrements of a comfortable life.
Governments pursued energy-intensive industrialization, seeking to diversify their economies into sectors where they had a competitive advantage: petrochemicals, aluminium, steel and cement. Mindful of social pressures, they subsidized natural gas, electricity and water, leading to runaway demand and inefficiency."
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