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US: Natural Gas Exports Fantasy
  • Vitaliy_KiselevVitaliy_Kiselev

    How much natural gas is the United States currently extracting?

    (a) Barely enough to meet its own needs
    (b) Enough to allow lots of exports
    (c) Enough to allow a bit of exports
    (d) The United States is a natural gas importer

    Answer: (d) The United States is a natural gas importer, and has been for many years. The EIA is forecasting that by 2017, we will finally be able to meet our own natural gas needs.

    How much natural gas is the United States talking about exporting?

    (a) A tiny amount, less than 5% of what it is currently producing.
    (b) About 20% of what it is currently producing.
    (c) About 40% of what it is currently producing.
    (d) Over 60% of what it is currently producing.

    The correct answer is (d) Over 60% what it is currently producing.

    http://ourfiniteworld.com/2014/03/31/the-absurdity-of-us-natural-gas-exports/

  • 4 Replies sorted by
  • brianlbrianl

    Can someone, Vitaliy, or anyone, put these two together? Is this just a function of how energy markets work? It's cheaper to export our own and buy someone else's? Doesn't exactly seem an efficient model.

  • AriaAria

    All I see is estimates based on the current and expected rate of increase, but that doesn't predict if there is a change in focus by the US Government in ramping up production and giving permits, subsidies and grants for LNG Processing Plants. It's not a matter of the US not having enough Natural Gas but rather the ability to extract and process which could easily be ramped up with a change in focus. The time table could be pushed up if there was such a change. We'll have to see what happens but it's a distinct possibility.

    http://www.fool.com/investing/general/2014/03/31/how-an-increase-in-american-natural-gas-production.aspx

  • Vitaliy_KiselevVitaliy_Kiselev

    @Aria

    Link above has real serious predictions. Add to it that most companies producing gas are now in very specific state - artificial financing via banks using QE money, otherwise they will sink.

  • karlkarl

    @brianl: You can bet that gas harvesting companies will do whatever promises them the best profit, regardless of where demand and supply are located. If natural gas can be sold overseas for twice the price, then even a liquification/transport process adding 50% cost might still be much more profitable.

    Don't think for a second that a global corporation would care about any impact on the standards of living in any specific country, that is not what managers are paid for.

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