Sizing up the U.S. gas boom
Here's a look at the state of play with natural exports as the White House emphasizes them during "Energy Week."
Big change: The U.S. recently became a net exporter of natural gas, with pipeline volumes to Mexico rising substantially in recent years, LNG exports from the Gulf Coast beginning in 2016, and imports dropping sharply from a decade ago thanks to the domestic production boom.
What it means: A Barclays research note out this morning highlights the "dramatic reversal" in the country's trade deficit in natural gas, noting it was $32 billion in 2005, but less than $2 billion in 2016. They envision a $1 billion surplus in 2017 that rises alongside exports in coming years.
Go deeper: Cheniere Energy, which began to export LNG from the Gulf Coast last year, gave this presentation at the Energy Information Administration conference in D.C. yesterday that looks at the role of U.S. LNG in the global supply picture.
Cheniere presentation: The company predicts that the U.S. could account for around 20% of global LNG supplies within five to six years.
- Anatol Feygin, a top Cheniere exec, challenged the idea that global markets could face an LNG "glut." "When we travel around the world, every discussion we have with buyers is about selling them more," he told the EIA conference. (To be sure, he made clear that his remarks were promoting his own company and product.)
- His presentation, in fact, warned of a "supply gap" opening up early in the next decade. "We are quite concerned that the market will not respond in time," he said, noting the long timeframes for building out infrastructure.