Posted on 01/05/2016 5:19:37 AM PST by thackney
Texas shale gas is setting sail for Europe.
Cheniere Energy has begun liquefying natural gas at its Sabine Pass terminal on the Texas-Louisiana border. The gas will be loaded onto a ship scheduled to travel overseas later this month.
That's welcome news for Texas and U.S. gas producers. A glut of shale gas has depressed prices in the domestic market. Slower growth in China and South Korea have clouded prospects for LNG shipments from Alaska to Asia.
That leaves Europe, where demand for natural gas remains strong -- and prices are much higher.
Getting the gas there is the challenge. An offshore pipeline would cost too much. And, until now, there have been no liquefaction facilities in the lower 48 states.
Which brings us back to Cheniere Energy.
The Houston company is investing billions of dollars converting its Sabine Pass Terminal to LNG exports. It's building a similar facility from scratch in Corpus Christi. Customers are lining up in advance and contracting most of the gas scheduled to flow through the LNG "Trains" (essentially production lines) before they are even built.
That sets the stage for the return of the U.S. (and Texas) as one of the world's largest energy exporters. Last month, the first shipment of US crude oil in more than 40 years set sail from Corpus Christi to Europe. More tankers are expected to follow from Houston and other Gulf ports.
How those commodities fare in overseas markets may tell Texas shale oil and gas producers where their fortunes are headed... and whether Cheniere's billion dollar LNG bets pay off.
I bet this does not fit he who shall not be named, model of how the world should be run and might even get under his thin skin a bit...
All done to raise the domestic price. Great.. /sarc
Done to keep American jobs and better trade balance.
Done to keep investment in America and grow our Natural Gas Supply infrastructure.
Do you prefer to see Russia or Qatar supplying that gas to Europe?
Notice I used the word American twice because I think of America first, last and always.
Good news!
You don’t understand how this grows the supply and keeps prices lower in the US.
Just as has already been done in the Propane market.
You keep wanting to ignore reality, pretend that only the demand curve has impact and ignore the supply curve of economics.
You want to control the output and ownership of products of Americans. You want more government control and regulations. I want less of each.
You bring the same claim to each thread, ignore what has already shown your claims false, and repeat.
You have a nice day, God Bless.
Ok, I get it they sell to Europe for less than they can sell to US citizens...
If I remember correct a weedwacker ( used to trim greenies lawns via their landscaping crews like the hollywierd anti global warming types ) emits more emissions in a hour than a SUV driving across the country.
With that said their is a ton of off road stationary or mobile engines used in service and industry, such as pumps, lawnmowers, etc etc.
Where is a the infrastructural push to get them to run on CNG as these engines will run cleaner on it? Especially if it is cheaper? It would need a new class of small and fungible fuel tanks to fit these devices. Hugh win-win IMHO, greater margins, cleaner, and go after a segment that is not "dirty", but could be cleaner.
for those of you wanting to learn more, this is how it is shipped:
https://www.youtube.com/watch?v=kqNIASfUX9E
No, the prices in Europe remain much higher than in the US.
Please don’t give them more ideas to raise cost to own and operate small engines.
This is YUUUGGE !
/8^)
Is your profit larger when you sell 1 million units with an average profit of $1/unit at a price of $10/unit, or:
You sell 5 million units with an average profit of $.50 per unit at a price of $6/unit?
Domestically, commerce between the 50 states, I believe in total 'Laissez Faire', but having said that I am a protectionist and proudly so. Just like < insert every single founding father name here. >.
Once you cross the border it is the duty of every American to question what is being transacted and to hold the govt accountable to make decision IN THE BEST INTEREST OF AMERICA. I really don't care whether you like it or not.
We have huge deficits with every other country and your idea is to sell them our natural resources and freeze us out. Hell you guys would sell all of it overseas if you could get away with it.
In the 80's I lived in New England for a year and fuel oil price was thru the roof, I remember the oil patch saying 'let 'em freeze'. See people remember things.
This may be more complex than meets the eye. I welcome savvy folks to comment/explain. A couple local -somewhat liberal- investment advisors who have a radio spot here in Cincy posited this. We ship oil and gas overseas will cause our supply to shrink raising our prices back to $3+ per gallon. Russia needs oil to be $80/barrels to be profitable and Saudi is keeping it low to keep pressure on us and Russia to eliminate suppliers driving them out of business. 8 like supplying our own oil and glass to us and around the world but the mix of dictators and Russia and Shia vs Sunni is a little too dangerous to ignore. In school we had multivariate equations to solve with the right combinations of constraints...this one is a toughie.
This is good news. Not only for the Texas econ, but eventually the US economy should it all work.
Yup the globalists win and we US citizens lose, again. Natural Gas prices are going up.
As opposed to a carburetor rebuild every year to two because of Ethanol in our fuel? That's $100 a pop per engine. I am not saying small engine shops are getting rich but business is good for them because of Ethanol. I'd rather run on CNG that than crap...
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