This is it … the US Department of Energy is expected to decide on US natural gas exports this summer, and President Barack Obama has already suggested that the US could become a net exporter by 2020. At stake immediately are over 24 applications for natural gas exports to companies in countries that do not enjoy free-trade agreements with the US.
America now enjoys record gas supplies with prices only 25% of those in Europe and Asia, and as it stands we’re probably looking at 25% growth in US gas supplies by 2035. The European spot price is around $10 per million B.T.U.'s, while the Asian spot price hovers around $15, or higher.
While US natural gas exports have doubled since 2007, those exports have gone only to Canada and Mexico … we’re convinced that is about to change, and we might be only weeks away from a decision.
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With the exception of Norway and Demark, European countries are all net energy importers. Italy is the biggest importer—at about 75%, followed by Germany (50%), and France (40%, despite its nuclear prowess, just to top off the list. Europe’s economic growth, then, could actually hinge on getting its hands on cheap US natural gas. Never has it been more urgent for Europe to replace Russian gas and its high prices fixed to the price of oil with something more feasible economically—something that would make Europe less vulnerable. And here’s…