Issues regarding the export of natural gas
The fracking boom has led to low prices and high supplies of natural gas in the United States, which makes consumers and manufacturers who use natural gas very happy. But prices overseas are much higher, so there are 19 applications to sell liquefied natural gas overseas, and many are watching to see what the Obama administration will decide.
In Europe and Asia, where natural gas sells for $10 to $16 per million British thermal units—three to four times the U.S. price—demand is high. Imports from the U.S. could also give European countries greater power to bargain on prices with Russia’s Gazprom (OGZD), now a dominant supplier of natural gas. All that’s missing are the U.S. facilities to liquefy gas for export.
There’s a ton of money to be made for gas producers, and the natural gas could replace coal, which is growing as an export to Europe. Since natural gas is cleaner, many argue that allowing exports would be good for the environment.
But there is opposition from domestic manufacturers who don’t want to see natural gas prices go up. The article linked above points out that “Paul Cicio, president of the Washington-based trade group Industrial Energy Consumers of America, has called for delaying approvals for some new export terminals to avoid a domestic price shock.”
Stay tuned . . .
Posted in: Renewable Energy
Tags: exporting natural gas, fracking, fracking boom, gas boom, gas export issues, gas industry, gas industry risks, Gazprom, hydraulic fracturing, hydraulic fracturing risks, Industrial Energy Consumers of America, liquefied natural gas, Paul Cicio, producing shale gas, shale gas, shale gas boom
Will Israel become an energy superpower?
Energy resources like oil and natural gas can have a huge impact on a nation’s fortunes. It’s for this reason that it will be so difficult to wean ourselves off of fossil fuels. The riches associated with them are staggering, and it leads to political power in foreign relations as well. Environmentalists and anyone interested in global warming needs to acknowledge this fact, and it’s probably more important to promote alternative fuels and conservation as opposed to trying to stop people around the world from drilling. That just isn’t going to happen.
One new wrinkle has to do with new countries entering the fray on fossil fuels. We have the fracking boom in the US, and now we have news that Israel may be poised to become an energy superpower.
Actual production is still miniscule, but evidence is accumulating that the Promised Land, from a natural resource point of view, could be an El Dorado: inch for inch the most valuable and energy rich country anywhere in the world. If this turns out to be true, a lot of things are going to change, and some of those changes are already underway.
Israel and Canada have just signed an agreement to cooperate on the exploration and development of what, apparently, could be vast shale oil reserves beneath the Jewish state.
The prospect of huge oil reserves in Israel comes on top of the recent news about large natural gas discoveries off the coast that have been increasingly attracting attention and investor interest. The apparent gas riches have also been attracting international trouble. Lebanon disputes the undersea boundary with Israel (an act somewhat complicated by the fact that Lebanon has never actually recognized Israel’s existence), and overlapping claims from Turkey and Greece themselves plus both Greek and Turkish authorities on Cyprus further complicate matters. Yet despite these tensions, following Russian President Vladimir Putin’s surprisingly cordial visit last week, Gazprom and Israel have announced plans to cooperate on gas extraction.
Read the entire article as it goes into the geopolitical issues surrounding this development as well.
Posted in: Carbon, Conservation, Energy Independence, Global Warming, Renewable Energy
Tags: conflicts over energy, drilling riches, energy superpowers, fracking, fracking boom, fracking in Israel, gas boom, gas industry, gas industry risks, Gazprom, hydraulic fracturing, hydraulic fracturing risks, Israel and ebergy, Israel energy superpower, natural gas in Israel, oil in Israel, politics and energy, producing shale gas, shale, shale drilling, shale gas