for LNG Exports
Together, Australia, Qatar, and the U.S. will account for 60 percent of global LNG capacity by 2023. Meanwhile, China will dominate demand growth going forward, importing increasing volumes of LNG to replace coal-fired electricity and coal-burning furnaces.
While oil and gas supplies have yet to be significantly affected by the current spat surrounding Qatar, it could escalate tensions in the region, home to a majority of the world’s oil reserves, and lead to deeper geopolitical instability.
Despite setbacks for the industry, the U.S. shale gas revolution still persists, with the Marcellus play thriving, drillers using more efficient techniques, and exports possibly rising over the long term.
While crude and products will see only modest changes from the expansion of the Panama Canal, the effects for LNG and propane will be much greater. The U.S. LNG industry will now have access to a transit route that can accommodate larger tankers at a time the industry is primed to export volumes to Asia.
Secretary of Energy Ernest Moniz stated that energy security is a “collective responsibility,” noting, for example, that insecurity elsewhere negatively affects the U.S.
In the wake of the crisis and violence in Ukraine, the EU stepped up its search for alternative supply sources to trim its dependence on imported Russian natural gas, but solutions such as imported LNG provide only marginal energy security gains.
Natural gas prices have quietly fallen to dramatically low levels, eclipsing even the rock-bottom prices seen years ago when the shale gas revolution took off.
Jeb Bush has rolled out a domestic energy policy focused on cutting regulations and enabling exports of U.S. crude oil and natural gas.
Despite the recent excitement surrounding export opportunities for U.S. natural gas producers, global LNG demand is looking remarkably weak.