1/8th of all U.S. Natural Gas Production to go overseas as LNG

The web site Energy And Capital put up a research article this week that predicts that LNG exports is poised to take off into the stratosphere in the next few years, and that now is the time for investors to get in on the ground floor while natural gas prices are at historic lows and fossil fuel companies’ stock prices are slumping. The article predicts that now is the time to strike in the market, because shortly a full 1/8th of all U.S. natural gas production is going to be shipped over seas, and energy stocks will therefore skyrocket.

The full article is here:

http://www.energyandcapital.com/articles/lng-investing-guide-2015/4904

From the article:

“The fuel sits at typical summertime lows, but as the U.S. develops new electricity generating infrastructure, we’ll see demand rise gradually over the next few years. And the end of this year will mark the beginning of a new wave of natural gas demand that’ll boost the gains for investors who are keyed in now….

Once the current LNG projects under construction start liquefying and exporting natural gas abroad, they’ll soak up about 9 billion cubic feet of gas each and every day.

Right now, that number would be one-eighth of all U.S. gas production.

Sure, some of these projects won’t be finished for a few years, and natural gas production will increase in the meantime, but it would be foolish to think it’ll increase enough to make 9 billion cubic feet per day a negligible amount.

One-eighth of U.S. gas production gone would set up a huge spike in both demand and prices for natural gas in the U.S.

Add to this the industrial uses and the new natural gas power plant additions (which are many), and it’s inevitable that gas prices will rise.

When they do, so too will the value of companies that drill, harvest, ship, and produce the fuel for consumption.

So in relation to PennEast – do you still believe they’re here to bring affordable gas to businesses and consumers in PA and NJ? Or do you think they hear that giant LNG KER-CHING and are rushing to cash in on the export gold mine?

Published by

Mike Spille

I'm a thinker, an analyzer, a synthesizer. Maybe not in that order. I live in West Amwell NJ with my wife Kristina, our two kids Day and Z, our two dogs Fern and Cinna, and three cats Ponce de Leon, Oliver, and Doolittle.

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