Recently Reuters and WSJ wrote about increased LNG exports, rising energy prices and increased carbon emissions due to switching AWAY from natural gas. At RBAC, we run energy market simulations through GPCM software to get the best information possible and here are some key points about that impact fuel use decision-making, LNG exports and prices:
- The abundant, and quite economical, U.S. oil and gas resource base helps to mitigate even higher global LNG prices:
- the U.S. is currently supplying nearly 13 Bcf/d of LNG exports to world markets
- the U.S. will become the world’s largest LNG exporter this year, following a similar path as U.S. LPG exports
- these products are much cleaner than coal, dung, wood, and other fuel sources used for both cooking and heating – they reduce medical costs, emissions and increase life expectancy
- the U.S. LNG exports to Europe exceeded Russian pipeline deliveries last month – pretty sure Europe was happy to have U.S. LNG supply…
- New England’s natural gas issue is directly related to the regulatory environment that prohibits pipeline expansions:
- the prolific Marcellus and Utica shale plays are located just a few states over in Pennsylvania so right in New England’s “backyard”
- suppliers there would love to provide even more natural gas to demand centers such as New England, New York, and even the world, via the Cove Point LNG export terminal in Maryland, thereby reducing costs globally
- reducing regulatory burdens would increase employment, the tax base (and thus revenues), and overall socio-economic prosperity
- One might even consider implications of changes or exemptions to the Jones Act which prohibits foreign owned vessels from transporting products among U.S. ports, a move which could reduce prices of LNG for New England drastically
Next week, RBAC will interview Scott McKenna on the New England energy crisis, look out for it on our social media channels, LinkedIn, Facebook, Twitter and YouTube.
Links to Reuters and WSJ articles:
https://www.reuters.com/world/us/new-england-carbon-emissions-spike-power-plants-turn-dirtier-fuel-2022-02-11/
