Many years ago the supply in domestic US gas was fairly low. The demand was much higher. Thus, the United States was forced to import gas. However, times have changed.
The US wants to make investment in drilling gas. The US currently has a lot of shale gas attained domestically. The price of gas in the US has gone down to $3.80 I addition to having a surplus. The demand has risen. However, if the United States doesn’t invest in other drilling technologies to attain more gas, in the future, it will eventually lack gas. Besides just consuming the gas in the US, it should be exported to other countries as well.
As many debates have been held, many companies have come to ask the Federal Energy Regulatory Commission for permission to export gas instead of importing gas. The US would highly benefit since it would be able to rank higher in the oil and gas industry just like for example, Qatar.
This is a new opportunity for the US economy. Having abundance of gas is helpful for exporting more than importing and therefore bringing up the GDP of the country, since there will be less imports in gas.
http://blogs.forbes.com/christopherhelman/2010/09/27/its-time-for-the-u-s-to-export-natural-gas/
I find your blog to be interesting, especially after I blogged about September futures on natural gas falling 11% The demand in the US has been met and with the abundance in production, foreign markets would allow for new opportunities in the industry. If granted permission, companies in the industry, such as Chesapeake, could worry less on scaling production, and more on satisfying a new found demand.
ReplyDelete