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Page added on May 7, 2017
Can the US Become the Saudi Arabia of Natural Gas?
The Department of Energy gave a Texas-based energy company permission Tuesday to export liquefied natural gas (LNG) to countries with which the U.S. does not have free trade agreements.
Golden Pass Products will build an LNG export terminal capable of shipping 2.21 billion cubic feet per day (Bcf/d) of natural gas around the world. It’s the first LNG export terminal approved by the Trump administration, adding to the already 19.2 Bcf/d of exports approved by the Obama administration.
The export facility will create an estimated 45,000 direct and indirect jobs over the next five years, according to Golden Pass. The company estimates the construction operation of the facility will generate up to $3.6 billion in federal and state tax revenues.
The Trump administration said the terminal’s approval would help make the U.S. a “dominant” energy force in the world.
“This announcement is another example of President Trump’s leadership in making the United States an energy dominant force,” Energy Secretary Rick Perry said in a press statement. “This is not only good for our economy and American jobs but also assists other countries with their energy security.”
U.S. energy ascendancy will have political implications in Europe where about half the continent’s natural gas supply comes from state-owned Russian companies. Foreign policy experts see U.S. gas exports as a way to undermine Russia’s energy dominance in the region.
[…]
U.S. consumers would deal with minimal costs to export LNG and it would lead to huge economic benefits, according to a study published in December 2015 by the DOE. The study found exporting American LNG would provide huge environmental benefits as well. The report states exporting LNG will help “address a variety of environmental concerns in the power‐generation sector.”
Exporting natural gas is likely to be a growth industry, as global demand for natural gas is expected to be 50 percent higher by 2035 than it is now, according to the International Energy Agency. Demand for imports of LNG increased 27 percent in the United Kingdom last year alone.
Read more: http://dailycaller.com/2017/04/25/trump-approves-natural-gas-export-terminal-in-bid-for-energy-dominance/#ixzz4fXmmrQWe
22 Comments on "Can the US Become the Saudi Arabia of Natural Gas?"
dissident on Sun, 7th May 2017 8:24 am
We’re going to see this delusional rubbish for years to come. People who want a realistic assessment should look into Art Berman’s analysis of the actual tight gas capacity:
http://www.artberman.com/wp-content/uploads/HGS-NA-Presentation-23-Feb-2015.pdf
coffeeguyzz on Sun, 7th May 2017 9:34 am
Just read the linked Berman piece.
Similar to David Hughes’ ‘Drilling Deeper’, that analysis by Berman is ALREADY dramatically proven to be in error.
Even a quick look at recent production figures out of the Permian of 7 Bcfd (not even included in Berman’s piece) would clearly show that 2015 article is woefully out of date as well as inaccurate.
Continuing to rely upon erroneous data that re-inforces ideological views is a big reason the ‘peak hydrocarbon’ cult is shrinking faster than their despised oil/gas resource base.
A perusal of the EIA’s gas information – as well as learning and understanding the recent efforts from the USGS – would enlighten an open minded individual to the true Saudi-sized natgas bounty that the US possesses.
dissident on Sun, 7th May 2017 10:06 am
People are free to read more recent pieces by Berman. So cut the crap.
As for your precious Permian basin:
http://www.jwnenergy.com/article/2017/3/canadas-oilpatch-should-not-fret-about-permian-basin-yager/
Lots of hype much like your post.
coffeeguyzz on Sun, 7th May 2017 10:40 am
Dissident
I rarely reply to posters from this site as the inability to engage in constructive dialogue seems to be the norm.
I most certainly will ‘cut the ‘crap’ and return to the real world of verifiable data, especially that which challenges my beliefs so I can continually learn and re-evaluate.
You linked to a piece by Berman to, presumably, refute the premise of the above article and described it as an “analysis of the actual tight gas capacity”.
Your quote.
Even a cursory glance at pages #12 and #13 of Berman’s piece should prompt hilarity at such gems as 315 Bcf new discovered reserves from Marcellus-Utica. Well … three months ending December, 2016, Ohio ALONE produced 345 billion cubic feet of gas.
Could be a ‘learning moment’ for those who wish to truly grasp what is unfolding in the natgas world in the US.
Just takes a few minutes of checking published records, especially EIA and, more recent dramatic info from the USGS. …or not …
Davy on Sun, 7th May 2017 12:26 pm
“I most certainly will ‘cut the ‘crap’ and return to the real world of verifiable data, especially that which challenges my beliefs so I can continually learn and re-evaluate.”
If it is American and positive then automatically dissident calls it crap. The real world and verifiable data is not important.
GregT on Sun, 7th May 2017 12:30 pm
“If it is American and positive then automatically dissident calls it crap.”
The gang keeps growing larger by the day, in Davy’s mind.
Davy on Sun, 7th May 2017 12:34 pm
Dissident is just another anti-American Canadian so I would expect that out of you Greg. You guys stick together.
GregT on Sun, 7th May 2017 12:50 pm
It makes no difference how many times I try to explain it to you Davy. As long as you choose to keep living in your make believe world, you will continue to be delusional.
rockman on Sun, 7th May 2017 12:59 pm
What seems to be missing from the conversation is that with respect to US NG production and exports NOT ONE F*CKING THING HAS CHANGED. LOL. US consumers have competed with the international market for decades whether it was LNG or pipeline sales. The only change is that LNG opens up some smaller markets.
Latest number for Feb from the EIA: 80% of US NG exports were shipped by pipeline to Canada and Mexico. And of that 20% of LNG shipped Mexico received more the any other country including 50% more then was shipped to the #2 buyer, China (that in Feb received just 4% of total US NG exports). But as more pipelines from Texas continue to be built that LNG count should drop.
Bottom line: even when the US was a NET NG IMPORTER the export of NG to other countries still happened since the country has an OPEN MARKET when it comes to NG sales. How much NG reserves the US has and our production rate are not relevant to LNG exports: the Hugh bidder gets the gas. IOW our consumers were already competing with foreign NG consumers on a price basis.
Nothing to look at here, move along. LOL.
rockman on Sun, 7th May 2017 1:09 pm
Oh, I forgot to answer the question: no, the US does not appear interested in becoming “the Saudi Arabia of NG”. The KSA only exports oil that its citizens don’t require. The US, OTOH, exports NG that US citizens would consume if foreign buyers did not outbid them.
But that could change if the govt banned NG. But at the moment the govt appears quit content doing what it can to increase NG exports.
dissident on Sun, 7th May 2017 2:15 pm
Art Berman must be anti-American. What a collection of tantrum baby pinheads (Davy, etc.) Proof that there is no real counter-argument, just primitive ad hominem drivel.
Davy on Sun, 7th May 2017 3:02 pm
Thanks dissident you described yourself perfectly and I flushed you out of the bushes with the anti-American Canadian thing. You are a Russophile asshole who has a narrow understanding of the world beyond anti-Americanism and basic engineering. IOW you are clueless to modern global economics.
Anonymouse on Sun, 7th May 2017 6:33 pm
Ranting hillybilly says
“IOW you are clueless to modern global economics.”
Oh, so hes exactly like you then exceptionalist. Good to know…
Davy on Sun, 7th May 2017 6:42 pm
Wow, you friggen Canadian anti-Americans are thick as thieves. I will say this you guys stick up for each other. On the other hand it shows you guys are pussies and can’t man up to a challenge except with help. I would expect that out of a stupid Canadian millennial like you.
Check this out dumbass from your dumbass neighbor:
Delusional disorder
People with delusional disorder generally experience non-bizarre delusions, which involve situations that could occur in real life, such as being followed, poisoned, deceived, conspired against, or loved from a distance. These delusions usually involve the misinterpretation of perceptions or experiences. In reality, however, the situations are either not true at all or highly exaggerated.
Boat on Sun, 7th May 2017 10:17 pm
Nat gas consumption has been growing at a rapid pace since fracking took off in 2002. Much of that growth has gone to replacing coal. Coal market share in the US going from over 50 percent to around 32 percent. At the same time exports have risen dramatically to Mexico with more pipelines on the way. The latest big push to ship LNG is still in it’s infancy but growing rapidly. Big money and 10’s of billions are being spent annually in nat gas expansion downstream.
Green People's Media on Mon, 8th May 2017 9:05 am
Some questions come to mind. While 2.1 Bcfd doesn’t seem like much of a chunk out of the total U.S. production, doesn’t the 19.2 Bcfd approved in the previous administration seem like a big chunk to you?
Also, whether Art Berman’s exact numbers may or may not be up to date, does anyone else think that pushing a lot of gas out of the country will lead to an eventual problem, since the major 7 or 8 shale fields have finite, not infinite, known resource amounts?
For instance, the Barnett Shale field, when it was ramping up, was touted (by the industry) as an example of “Saudi American” energy dominance. Now, the Barnett is gradually winding down. Other fields look like they will soon be winding down as well. Tad Patzek described this process pretty well a couple years ago.
What do you think? Is this gas-export facility mainly to fatten up the (offshore) bank accounts of the corporations involved in it? Or is it really the major “job factory” the story portrays?
I’m skeptical as hell about these stories, don’t know about you.
rockman on Mon, 8th May 2017 9:24 am
“Nat gas consumption has been growing at a rapid pace since fracking took off in 2002.”
Actually US NG consumption peaked in Jan 2014 while production peaked in July 2015.
https://www.eia.gov/dnav/ng/hist/n9140us2M.htm
https://www.eia.gov/dnav/ng/hist/n9070us2M.htm
We saw a nice steady rise in consumption since 1986 prior to which we saw declines for 15 years. Obviously increasing NG exports explain the decrease in consumption compared to production. What actually stands out in great contrast is how fortunate the Marcellus Shale production kicked in just as heritage production began to nose dive. The MS jumped from about 7% of total production to almost 20%. That was largely due to the spiking of NG prices. But now that we have had lower prices for a number of years MS production is no longer growing rapidly and seems to have plateaued.
But as exports continue to grow and production continues to falter it will likely put upward pressure on prices that could lease to increased drilling/production.
rockman on Mon, 8th May 2017 9:41 am
Greenie – “Is this gas-export facility mainly to fatten up the (offshore) bank accounts of the corporations involved in it?” What “offshore bank” accounts? These are US corporations conducting legal business so why would they need to hide income as you seem to imply? And the govt permits for LNG export terminals have nothing to do with the legality of exporting NG. It’s an open market and companies have had the right to sell US NG to foreign consumers for decades just as has been done with US oil for more than half a century.
Correct me if I’m wrong but were you wearing your tin foil hat while typing your post that has a slight smell of conspiracies to it? LOL.
rockman on Mon, 8th May 2017 9:50 am
“Or is it really the major “job factory” the story portrays?”. And no: compared to the monetary value of LNG export operation the manpower requirements are rather minimal. The only factor considered in the decision process to build out export capabilities is profit. Which would be exactly what you should expect from any commercial operations. Since the end of WWII the fossil fuel industry has not been responsible for supplying US consumers with the energy they need at a price they can afford. Essentially no different then all the other US industries.
GregT on Mon, 8th May 2017 9:52 am
U.S. coal production and coal-fired electricity generation expected to rise in near term
“In 2017 and 2018, as natural gas prices are expected to increase, coal is expected to regain some share of the electricity generation mix, and coal production is expected to increase slightly.”
https://www.eia.gov/todayinenergy/detail.php?id=29872
Green People's Media on Mon, 8th May 2017 10:37 am
To Rockman, OK my comment about “offshore accounts” is gratuitously snarky and cynical about U.S. corporations. However, considering that U.S. corporations do have a stash of anywhere between $2 trillion and $4 trillion (depending on how anti-corporate the story writer is who cites the figures), I’m not too far off the mark.
Green People's Media on Mon, 8th May 2017 10:39 am
also, Rockman,
you’ll often find a flaming anti-corporation bias in most of what I write on the peak oil boards.
Just what you’d expect from an old retired communist snowflake like me.
Have an iced ay!