The world's largest oil consumer exported more hydrocarbons than ever before in 2017 and shows no signs of slowing down. You name it - crude oil, gasoline, diesel, propane and even liquefied natural gas - all were shipped abroad by the US at a record pace. While the surge comes many years after the shale boom started, it can be traced straight back to the growth of horizontal drilling and fracking. US exports are poised to expand even further, as the fear of peak oil supply has all but vanished just as a new demand threat emerges in the form of electric vehicles. Americans are expected to end the year pumping oil out of the ground at rates unseen since the early 1970s. More and more of it is going overseas, giving OPEC a headache as the group restrains its own output. Last year the
America needs to be conserving its remaining hydrocarbon resources like our lives, and the lives of our kids, depends on it. Instead, in 2020 the US exported 1.28 billion barrels of Texas tight oil to Asia, etc. and America exported over 5.4 TCF of natural gas. We're going to wish, very soon, we had all those exported hydrocarbons back.
Pops wrote:A difference of 2Gb a year. 2GB a year that we will be wishing we'd kept around here in a very few years when OPEC is calling the shots.
So far in 2021 LNG exports from the United States are up a startling 42% from 2020, to 9.6 BCFPD. Total gas exports including to Canada and Mexico are approaching 15 BCFPD. Man, that's a lot of gas. That is partially why Henry Hub has been trading in the low $5 range and its clearly hurting American industries and the American consumer.
The shale industry, where all this LNG is coming from, doesn't give a rats ass about the American consumer; if it can expand its market to a gas starved Europe, for instance, it will sell it there.
If you think the exact same thing won't happen to crude oil some day, soon, your gonna be shocked. It would have already happened but for the lousy quality of light tight shale oil and the discounts it receives when sold over seas.
Seizing on higher US natural gas prices expected this winter, a group of industrial manufacturers is making a pitch for the Department of Energy to limit LNG exports and put a hold on some pending export project authorizations.
Pops wrote:Seizing on higher US natural gas prices expected this winter, a group of industrial manufacturers is making a pitch for the Department of Energy to limit LNG exports and put a hold on some pending export project authorizations.
https://www.spglobal.com/platts/en/mark ... ng-exports
Pops wrote:America needs to be conserving its remaining hydrocarbon resources like our lives, and the lives of our kids, depends on it. Instead, in 2020 the US exported 1.28 billion barrels of Texas tight oil to Asia, etc. and America exported over 5.4 TCF of natural gas. We're going to wish, very soon, we had all those exported hydrocarbons back.
Mike Shellman
"The Future Ain't What It Use To Be"
https://www.oilystuffblog.com/single-po ... fe4de5fc22
h/t Hole in Head @ POB
Outcast_Searcher wrote:I'm not convinced it's a disaster (time will tell), BUT, I'd certainly prefer we held onto our supplies for at least a decade or three, and see where we are.
yellowcanoe wrote:Outcast_Searcher wrote:I'm not convinced it's a disaster (time will tell), BUT, I'd certainly prefer we held onto our supplies for at least a decade or three, and see where we are.
That's a tough sell in a society that is very focused on the now and not the future. A huge amount of domestic oil would still be in the ground if the US had European level taxes on fuel. That would be political suicide though as so many Americans have built a lifestyle on the basis of having unlimited supplies of relatively cheap fuel.
Shellman wrote:To facilitate this 2016 drilling binge the tight oil sector hammered its core areas, its sweet spots with pad drilling, rig walking and zipper frac'ing. According the Journal of Petroleum Technology (SPE) it is likely that thousands of wells were drilled unnecessarily, simply to increase extraction rate of proven, developed reserves. In a feeding frenzy, wells were drilled 330 feet apart, lateral to lateral, and interfered with each other during the frac'ing process thereby reducing, not increasing, recovery rates of oil in place.
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The lifting of the crude oil export ban in 2015 will likely prove to be the worse energy policy blunder in history. Essentially unregulated, the US shale oil industry rushed to gain market share for its light tight oil and in the process shot itself in the financial foot, again, and the America consumer square in the back.
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