Why exactly are we exporting LNG anyway? We have finite domestic natural gas supplies. Why ship them overseas?
China pays $2000 per tcm.
There is a surplus of natural gas produced in the US, far above what we use domestically, that is “associated gas”. Every barrel of crude oil has dissolved gas in it, about 1000 to 3000 std. cubic feet. Alternatives to exporting are storage, which has limited space and pipeline access, or flaring the gas on site. Flaring is only permitted early in well life. It’s discouraged by the feds, and limited by states, often by state law. No revenue is made on flared gas, no taxes, no mineral owner payments. It’s wasteful to flare, but it does facilitate the abundant oil production. So the associated gas needs to go to market and be sold. LNG is the outlet. Shutting down LNG exports would force a slowdown of domestic crude production.
We think that natural gas resources are finite, but once extracted as a by product of oil production or from a primary gas well, it needs to be processed and stored.
Only so much production and storage capacity.
And shipping it to allies for a better price does tend to help the company bottom line.
In the Trump era with fracking rigs booming all over including on federal land USA had Gas to spare
Now that Brandon has shut off fracking on federal lands and stopped pipeline developments as well as Newscum preventing use of gas in new buildings in CA, we have a lot less gas available.
“We have finite domestic natural gas supplies. Why ship them overseas?”
I live right on top of the Marcellus gas region. There is enough gas there to supply all of Americas needs for 300 years.
The Utica formation below that has enough for 500 years.
The Marcellsu-Utica is 5 states NY, PA, Ohio , Wva and KY
This is not counting all the other gas formations through out the country.
“Why exactly are we exporting LNG anyway? We have finite domestic natural gas supplies. Why ship them overseas?”
my question as well ...