USA Natural Gas Exports To Triple In 5 Years

[Economy 52,842]

https://www.google.ca/amp/s/www.cnbc.com/amp/2018/03/08/new-us-natural-gas-boom-coming-as-chinese-demand-surges.html

 

Within next half a decade US Natural gas exports are expected to Grow from less than 4 Billion Cubic feet a day now to 10-12 Billion Cubic Feet

 

The reason is that WW Natural Gas demand is surging as an alternative to Coal Power Generation (Coal Pollutes almost 2X more than Natural Gas) as a move towards cleaner air

 

Shale Oil produces natural gas as a bi-product and ATM there is no infrastructure to deal with it all and much of it simply get flaired because there's no where to put it

 

However new pipeline capacity under construction will allow the US to sell its vast Natural Gas Surplus while tight supply World Wide will benefit from US supply

[Economy 52,842]

Indirectly this will help environment because this Natural Gas is already being burned anyway on site but once it can be exported it can be burned for actual power generation and help close Coal Plants which are much worse

[shoful 13,304]

Isn’t fracking really bad for the environment so doesn’t it end up being just as bad as coal

[Economy 52,842]

Just now, shoful said:

Isn’t fracking really bad for the environment so doesn’t it end up being just as bad as coal

Fracking is bad but remember most natural gas is being produced as bi-product from fracking for oil

 

I'm talking about the natural gas itself. A lot of it is being burned on site cuz they don't have enough infrastructure to move and store it all ATM

 

Its already being burned. At least once exported it will burn to help reduce Coal instead of burning for nothing

 

[rumours 45,521]

1 hour ago, shoful said:

Isn’t fracking really bad for the environment so doesn’t it end up being just as bad as coal

In my opinion, the worst thing about fracking is not actually the process itself. Rather, instead of properly cleaning the now-contaminated water they used during hydrolic fracking, the companies save costs and just pump the back into the ground/underground reservoirs. Needless to say, the ramifications (in geologic terms) can be quite dangerous. For the environment, many agree that coal is worse on aggregate terms than natural gas. 

 

OT: I think the most interesting thing will be to see potential permutations in prices as a result of this. To justify exponential increases in supply, forecasted demand growth must be pretty high. However, if the estimates for demand end up being overstated, this increase in production will result in downward pressures on price... that’ll be interesting to see if it happens.

[Economy 52,842]

1 hour ago, Rumours1977 said:

In my opinion, the worst thing about fracking is not actually the process itself. Rather, instead of properly cleaning the now-contaminated water they used during hydrolic fracking, the companies save costs and just pump the back into the ground/underground reservoirs. Needless to say, the ramifications (in geologic terms) can be quite dangerous. For the environment, many agree that coal is worse on aggregate terms than natural gas. 

 

OT: I think the most interesting thing will be to see potential permutations in prices as a result of this. To justify exponential increases in supply, forecasted demand growth must be pretty high. However, if the estimates for demand end up being overstated, this increase in production will result in downward pressures on price... that’ll be interesting to see if it happens.

It is but u have to remember one difference from usual supply and demand economics...

 

Natural Gas Prices in North America are artificially low compared to rest of the world because we have all this supply and still limited infrastructure to sell it abroad

 

Because Natural Gas is cheap here not a tone of investment is going towards natural gas extraction specifically (obviously some projects in good geological regions with low breakeven costs still go ahead)

 

Again most natural gas growth is coming from Companies that are fracking for Crude Oil (Not Natural Gas) but there's always some natural gas mixed in there that comes out

 

It is not the main thing they are fracking for but because it comes out anyway whether they want it or not, they are gonna sell it if they can even if prices drop low world wide. In this case lower global prices will NOT lower shale production of natural gas

 

Right now it's an expense because they amount they can ship is limited and the rest they have to get rid of by flaring it

 

Once the pipelines and ports for this are completed companies are going to sell it regardless of the price. They are fracking for Oil but this is a bi-product that comes with the oil that they have to do something with.