Liquefied natural gas policy overdue for an update

The Hill | Mark Maddox | 1/25/16 –

Sen. Lisa Murkowski (R-Alaska), chairwoman of the Senate Energy and Natural Resources Committee, has included liquefied natural gas (LNG) export legislation in a broader energy package that the Senate is expected to consider shortly. This is welcome news. It is time to put the export of LNG, which is natural gas cooled to its liquid form and loaded onto tankers for regasification at its destination, on a similar regulatory footing as oil.

An energy package incorporating LNG export legislation modeled after the oil export bill and which includes provisions allowing for emergency suspensions, sanctions and exemptions for “trading with the enemy,” and certainty for industry on permitting, would strengthen our environment, grow our economy and enhance our national security. It would also do the same across the globe.
But don’t just take my word for it.

The U.S. Department of Energy recently released a report, “The Macroeconomic Impact of Increasing LNG Exports,” that was conducted by Oxford Economics and Rice University. According to the report, “the overall macroeconomic impacts of LNG imports are marginally positive, a result that is robust to alternative assumptions for the U.S. natural gas market.” It then projected additional growth of 0.3 to 0.7 to the national gross domestic project (GDP) under a high-export scenario.

The full article from The Hill is here.

Exports: A New Day For U.S. Energy

Breaking Energy | 1/5/16 –

As we write, the United States is once again an exporter of crude oil. Sure, in the past the federal government has allowed limited crude exports. The oil tanker that left the Port of Corpus Christi, Texas, late last week is the bearer of the first freely traded U.S. crude in about four decades – made possible by congressional legislation that President Obama signed to end a 1970s-era ban on exports. It’s a new day indeed.

But wait, there’s more. Cheniere Energy  says it has begun liquefying natural gas at its new export terminal in Louisiana, setting the stage for its first LNG export cargo this month.

Both are big-time energy developments for the United States – opportunities created by a domestic energy revolution largely driven by safely harnessing vast shale reserves with advanced hydraulic fracturing and horizontal drilling. The United States, as the world’s leading producer of oil and natural gas, is supplying more of the energy Americans use here at home, lowering imports, and now is poised to become a major player in global energy markets. Phil Flynn, senior market analyst at Price Futures Group, to Bloomberg:

“Who would have thought we would be exporting both oil and LNG in the same month? Fracking has changed the world.”


View the full article is here.

Shale Gas Revolution Is Not Done Yet, Michael McDonald, 12/2/15 –

Most of the time companies see greater productivity as a good thing. Improved asset productivity helps companies produce more output for every dollar of input which usually increases profits. But what if every company across an industry produced more output? That is exactly what is happening in the natural gas market right now, and the results are looking increasingly dire for natural gas companies.

This summer, EQT Corp drilled what might be the largest natural gas well ever in the U.S. The summertime gusher in Pennsylvania’s Green County put out enough gas in the first 24 hour to power every house in Pittsburgh for 3 days. EQT is not alone in producing such prolific wells. Several other wells near EQT’s Scotts Run 591340 well have produced similar results. EQT is so confident in the productive output of the Utica field near the Scotts Run well that it is suspending work elsewhere to focus on that area. The result is that natural gas prices will likely come under further pressure.

Full story is here.