• 45 mins Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 5 hours Russia, Saudis Team Up To Boost Fracking Tech
  • 11 hours Conflicting News Spurs Doubt On Aramco IPO
  • 12 hours Exxon Starts Production At New Refinery In Texas
  • 13 hours Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 1 day Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 1 day Oil Gains Spur Growth In Canada’s Oil Cities
  • 1 day China To Take 5% Of Rosneft’s Output In New Deal
  • 1 day UAE Oil Giant Seeks Partnership For Possible IPO
  • 1 day Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 1 day VW Fails To Secure Critical Commodity For EVs
  • 1 day Enbridge Pipeline Expansion Finally Approved
  • 2 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 2 days OPEC Oil Deal Compliance Falls To 86%
  • 2 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 2 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 2 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 2 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 3 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 3 days Aramco Says No Plans To Shelve IPO
  • 5 days Trump Passes Iran Nuclear Deal Back to Congress
  • 5 days Texas Shutters More Coal-Fired Plants
  • 5 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 5 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 6 days Chevron Quits Australian Deepwater Oil Exploration
  • 6 days Europe Braces For End Of Iran Nuclear Deal
  • 6 days Renewable Energy Startup Powering Native American Protest Camp
  • 6 days Husky Energy Set To Restart Pipeline
  • 6 days Russia, Morocco Sign String Of Energy And Military Deals
  • 6 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 6 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 6 days India Needs Help To Boost Oil Production
  • 6 days Shell Buys One Of Europe’s Largest EV Charging Networks
  • 6 days Oil Throwback: BP Is Bringing Back The Amoco Brand
  • 7 days Libyan Oil Output Covers 25% Of 2017 Budget Needs
  • 7 days District Judge Rules Dakota Access Can Continue Operating
  • 7 days Surprise Oil Inventory Build Shocks Markets
  • 7 days France’s Biggest Listed Bank To Stop Funding Shale, Oil Sands Projects
  • 7 days Syria’s Kurds Aim To Control Oil-Rich Areas
  • 7 days Chinese Teapots Create $5B JV To Compete With State Firms

Battling for Something Worth Nothing

U.S. natural gas continues to be one of the cheapest commodities globally, on a late-historical basis.

But despite the low price (in fact, because of it), there's a fight brewing to control this unwanted good.

US House of Representatives Energy and Commerce Committee member Gene Green said last week that exports of liquefied natural gas should be a last resort for America. Speaking at an industry event in Washington, Green noted that he wants to see the U.S. "use all we can, whether it is for my chemical industry, for transportation fuel, even [for] fracking, and then we want to sell the rest".

This sentiment flies in the face of recent projections for the U.S. natgas business. Which see LNG exports as the next logical step for America's gas market, giving a boost to pricing by accessing high-value international markets.

Many LNG export projects are now going to permitting. But comments like Green's suggest the approval process isn't going to be slam dunk.

Big lobbies amongst U.S. gas consumers also appear to be positioning themselves to oppose exports. This summer, major gas-fired power generator Calpine filed for intervenor status in federal proceedings to approve a new gas export pipeline from Texas to Mexico.

Petrochemical manufacturers too, will likely throw their weight behind keeping cheap gas in America. Leaders in this industry like Sasol have announced multi-billion dollar pet-chem refinery projects along the Gulf Coast, to take advantage of cheap gas feedstock in making their products.

With government and industry opinions starting to align, going could get rocky for the LNG export movement. Don't take this "next phase" for the gas industry as a given just yet.

Here's to tough choices,

By. Dave Forest




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News