• 6 minutes Does Anyone Think the EU Can Successfully Defy US Iran Sanctions?
  • 11 minutes Does S Arabia Have 2 Mln Barrels in Spare Capacity?
  • 16 minutes WTI needs to stay above 70.x, for rally to continue.
  • 16 hours Can US sue OPEC?
  • 24 hours Rally on Hold, if 69.5 don't break, 62.5 could be next.
  • 19 hours US disavows carbon tax
  • 3 hours What's wrong with SA oil consumption?
  • 3 hours Verbal War - Merkel: Europe Can't Rely On U.S. To Impose World Order
  • 3 hours GE CEO: China Tariffs Could Cost Conglomerate Up To $400 million
  • 1 day FBI Director: Russia Continues to Sow Discord In The U.S.
  • 9 hours Rio Tinto Says $4-Million Goodbye to Coal
  • 4 hours XOM @ 83 headed for 70s
  • 2 hours Will the trade war hurt US project builds? Not if the US does it right.
  • 1 day Chile Becomes The Latest Country To Commit To 100% Renewables
  • 1 day Iran's President Warns Over U.S. Push For Countries To Stop Buying Oil From Iran
  • 1 day Where 3 Million Electric Vehicle Batteries Will Go When They Retire?
  • 23 hours Britain Has Identified Russians Suspected Of Skripal Nerve Attack?
Alt Text

Yamal LNG Is Conquering China

While many expected deliveries to…

Alt Text

Trump’s European Gas Plans Aren’t Realistic

Monday’s meeting between U.S. President…

Alt Text

Putin Assures Trump: Russia Will Keep Ukraine Gas Transit

Russian President Vladimir Putin has…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Trending Discussions

The U.S. Just Became A Net Exporter Of Natural Gas

Bakken rig

America’s energy scene has been in massive flux since the “shale miracle” broke in 2010.

And these past weeks, the U.S. oil and gas industry set a milestone. Doing something never done before in American history.

Becoming a net exporter of natural gas.

Platts reported Monday that its proprietary data showed U.S. natgas exports exceeding imports in early November. With the country’s gas balance netting an outflow of 1 billion cubic feet per day.

That’s the first time ever that American producers have shipped out more gas than the country takes in. And that historic event illustrates a number of critical changes happening right now in the U.S. energy scene.

One part of the equation is falling natgas imports into America. With November imports from key supplier Canada down 21% in November as opposed to October — to 4.5 billion cubic feet per day.

That’s coming as Canadian natgas prices have been rising compared to America’s Henry Hub benchmark. With Canadian prices averaging a $0.36/MMBtu discount to Henry Hub during November — notably more expensive that the $0.60/MMBtu discount that prevailed in October. Related: Trump Considers Oil Tycoon Harold Hamm for Energy Dept.

The bigger culprit is rising exports out of America. With natgas deliveries to the new Sabine Pass LNG export facility reportedly coming in at 1.5 billion cubic feet per day in November — up six-fold from the 249 million cubic feet per day the facility saw during October.

The last few weeks may in fact have marked the last we ever see net imports into America. With U.S. exports now expected to ramp up sharply due to rising LNG shipments, as well as new projects to deliver pipeline gas exports to Mexico.

That’s a bit of good news for U.S. natgas producers — which could see some buoyancy creeping into this market, as supply and demand finally normalize. Watch for more numbers on the import/export balance over the coming months.

Here’s to flipping it.

By Dave Forest

More Top Reads From Oilprice.com:




Back to homepage

Trending Discussions


Leave a comment
  • Joe on November 17 2016 said:
    USA and Australia invest massively in LNG export capacity. Qatar has larger natural gas reserves, yet restrains LNG investment in an effort to maintain high prices. Qatar also expects to export to Europe via a pipeline through Aleppo. Whenever and however Qatar expands exports the price of LNG must fall.

Leave a comment




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