Five Graphics To Cheer Up The U.S. Natural Gas And LNG Industry

Forbes / Jude Clemente / 5/23/16

Burdened by sunken prices, global oversupply, more regulations, and more relentless attack, the U.S. oil and gas industry could use a cheer up. While there are threats, the emerging U.S. LNG export business has a bright future. Let’s just look at the latest global gas demand projection we have, EIA’s International Energy Outlook 2016 just released May 11.

Given that gas has CO2 emissions 40-50% lower than coal and 25-35% lower than petroleum, releases far fewer greenhouse gases and local pollutants, and is the essential backup for wind and solar power, COP21 commitments “simply cannot come to pass without more gas.” Lots more gas.  The world is on the verge of major structural increases in natural gas demand.

Gas is the world’s fastest growing major fuel, and the big importers will require more imports. As a nation, we have an obligation to support our companies looking to export natural gas, because it helps to reduce global CO2 emissions, supplies modern energy to an overwhelmingly still poor and energy-short world, and buffers the gaining influence of the Gas Exporting Countries Forum, a “gas OPEC” set into motion by Vladimir Putin that holds nearly 70% of the world’s proven reserves.

 Full story is here.

Energizing U.S. Foreign Policy

The American Interest / Richard D. Kauzlarich / 5/10/16

Despite the turmoil of recent years, when U.S. allies find themselves in tight spots, they still expect that America will come to their assistance. And despite the worries of dwindling military and diplomatic resources, the U.S. government still has many other tools at its disposal—namely, market forces. An emerging case in point is America’s newfound energy abundance, particularly in natural gas.

The U.S. natural gas market over the past several years has become a source of envy for other foreign powers. The United States quickly became one of the world’s leading producers of natural gas and boasts the fourth-largest supply of recoverable shale gas reserves in the world. Even with prices falling, total U.S. natural gas production in terms of dry gas volume averaged 6.3 percent higher in 2015 versus 2014, according to the Energy Information Agency.

How can these assets at home help our allies abroad? The answer could rest, in part, with exports of U.S. liquefied natural gas (LNG).

It’s no secret that as U.S. production of natural gas continues to increase. Domestic stockpiles are about 25 percent above levels from one year ago and about 23.4 percent above the five-year average, and domestic consumption is well below current production levels. As a result, we are being increasingly woven into the international conversation on LNG exports, so much so that, according to a March 11 Forbes article, “After Qatar and Australia, the U.S. could easily become the world’s third-largest LNG supplier by 2020. We have a great advantage over other LNG exporters because we can reconfigure our vast LNG import structure to export.” BP’s recently released Energy Outlook 2016 Edition also predicts that the United States will become a net exporter of gas “later this decade.”

Full story is here.

US, Canada Natural Gas Exports Chip Away At Russian Dominance

The Daily Caller / Andrew Follett / 4/26/16

Canada and America are about to start exporting enormous amounts of liquefied natural gas (LNG), according to a pair of recently published reports by the U.S. Energy Information Administration (EIA) and American Enterprise Institute (AEI).

The rise of North America as a major exporter of natural gas is an enormous change in way the world gets electricity. Suddenly, European and Asian countries have a much broader choice of natural gas suppliers.

“Thanks to the shale revolution, the United States is now on its way to becoming a major exporter of liquefied natural gas (LNG),” AEI economist Dr. Mark Perry wrote in the Monday report. “In February, two LNG cargoes left Cheniere’s Sabine Pass export terminal in Louisiana for Brazil and India.”

EIA estimated Tuesday Canadian natural gas production will more than triple by 2040, matching the projected explosive growth of the American natural gas sector. Much of this new Canadian and American produced gas will be converted into LNG and sold to Europe.

Full story is here.