• 3 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 7 minutes Saudi and UAE pressure to get US support for Oil quotas is reportedly on..
  • 11 minutes China devalues currency to lower prices to address new tariffs. But doesn't help. Here is why. . . .
  • 15 minutes What is your current outlook as a day trader for WTI
  • 5 hours Will Uncle Sam Step Up and Cut Production
  • 2 hours In The Bright Of New Administration Rules: Immigrants as Economic Contributors
  • 26 mins Long Range Attack On Saudi Oil Field Ends War On Yemen
  • 10 hours Gretta Thunbergs zero carbon voyage carbon foot print of carbon fibre manufacture
  • 11 hours Domino Effect: Rashida Tlaib Rejects Israel's Offer For 'Humanitarian' Visit To West Bank
  • 2 hours * 8 to 10 "good" years left in oil industry * UAE model for Economic Deversification * Others spent oil billions on terrorism, wars, lopping off heads * Too late now
  • 11 hours Continental Resource's Hamm wants shale to cut production. . . He can't compete with peers.
  • 5 hours CLIMATE PANIC! ELEVENTY!!! "250,000 people die a year due to the climate crisis"
  • 16 hours NATGAS, LNG, Technology, benefits etc , cleaner global energy fuel
  • 1 day Significant: Boeing Delays Delivery Of Ultra-Long-Range Version Of 777X
  • 1 day Strait Of Hormuz As a Breakpoint: Germany Not Taking Part In U.S. Naval Mission
  • 24 hours Why Oil is Falling (including conspiracy theories and other fun stuff)
  • 14 hours Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
Alt Text

What The Market Is Overlooking In The Occidental Deal

Occidental Petroleum has caught a…

Alt Text

How To Play A Recovery In Oil Prices?

A realistic correction in the…

Alt Text

This Supermajor Is Leading The Energy Sector

This supermajor has been standing…

Dave Forest

Dave Forest

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

More Info

Premium Content

Did This Event Just Call a Buy on Natural Gas?

The full approval of the largest proposed U.S.-Mexico gas export pipeline.

This news came last week from the U.S. Federal Energy Regulatory Commission (FERC). Who granted a full presidential permit to the NET Mexico pipeline project.

The proposed pipe is by far the largest export project on the books. At 2.1 billion cubic feet per day of planned capacity. That's more gas-moving capability than all other U.S. export pipeline projects combined.

The new FERC permit gives project developers NET Mexico Pipeline Partners permission to "site, construct, connect, operate, and maintain a border-crossing facility" in south Texas. The firm last week awarded the construction contract for the 120 mile pipeline that will carry gas from the Eagle Ford shale basin to the border.

Completion of the project is expected in October 2014.

The green-lighting of this massive project is very significant. Especially in light of recent murmurings from U.S. industry groups relying on cheap domestic natgas supply. Just last week Carlyle Group CEO William Conway Jr. told a conference in Detroit that the "rebirth of American manufacturing" depends on low natgas prices.

But U.S. regulators are sending a firm signal that business opportunities come before any national energy agendas. It appears that natgas exports to Mexico will go ahead, despite opposition.

To be sure, the 2.1 bcf/d exports on the NET Mexico line aren't going to send natgas prices through the roof. But combined with other proposed projects, exports to Mexico could amount to 7 bcf/d. Equating to 10% of current U.S. production.

That marginal demand would be enough to support pricing. Events like this approval thus suggest that even if prices don't surge, they're unlikely to head much lower.

There are still some questions to be answered about Mexican gas shipments. Namely, how fast pipeline connections on the Mexican side will become operational.

But it appears that the momentum is now firmly behind growing exports. And stronger prices.

Here's to running for the border,

By. Dave Forest




Download The Free Oilprice App Today

Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play