Daily Management Review

Gas export from the United States exceeded imports for the first time in 60 years


11/28/2016


Volume of US exports of natural gas exceeded its imports for the first time in nearly 60 years. This was reported by The Wall Street Journal.



Antandrus
Antandrus
The publication cites S&P Global Platts American research company, according to which, the US exported an average of 210 million cubic meters of natural gas per day in the current month, and imported - about 190 million cubic meters. In addition, volume of natural gas that comes from the United States was exceeding index of imported gas during a few days in September.

As noted in the article with reference to the US Department of Energy, such a correlation was observed in the country nearly 60 years ago.

The Wall Street Journal surveyed analysts, who said that balance of exports and imports of natural gas in the United States may soon change again. The winter is approaching, and consumption of this energy traditionally increases during cold seasons. At the same time, in their opinion, overall dynamics growing gas exports from the United States will continue. According to US Department of Energy, the United States in 2020 will occupy the third place in the world in terms of LNG exports.

The largest buyer of US natural gas, according to the S&P Global Platts, is Mexico. Canada occupies the second place. Analysts fear that intentions of the United States President-elect Donald Trump would radically change trade relations with these two countries, and could have a negative impact on deliveries of gas to them.

Having won the presidential election, Donald Trump has promised to make the United States an "energy independent" country. He said that his plan is based on mitigation of regulation of the energy sector. Trump plans to open more federal land and water areas for oil and gas companies, simplify obtaining permits for new energy projects, and lift restrictions, including environmental, imposed under Barack Obama’s presidency.

However, these statements still do not cast light upon new President’s plans on a free trade agreement with Mexico.

Oil and gas exports from the United States has become possible thanks to the shale revolution. First, it was held in the gas production sector, so its price fell from more than $ 14 per 1 million British thermal units (BTU) in 2008 to $ 2.4 today. Then, companies, which used hydraulic fracturing and horizontal drilling, have learned to lift heavier oil to the surface. As a result, oil production in the US increased from less than 5 million barrels per day in 2008 to t current 9.2 million barrels (and reached 9.6 million barrels in April 2015), which was a determining factor in rebalancing of the world oil price market.

source: wsj.com






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