We are reaching the point where we produce more Natural Gas than we use. Exporting surpluses where economical keeps the US with more jobs and more incentive to keep building up the supply chain while our demand grows more slowly with new Chemical Plants, Natural Gas for transportation, etc.
If we close off exports, we will shut down the economic incentive to keep growing supply at this time. Many companies then will invest more in Qatar, Australia, etc instead of building up our infrastructure and supply.
“...We are reaching the point where we produce more Natural Gas than we use.....”
Yes sir. That is correct and the excess capacity depresses prices. This deal will assist in keeping things stable in the energy industry for a while as you’ve alluded. However inside the USA, there is a major multi-billion dollar project in Lake Charles, LA right now being done by SASOL. SASOL has a proprietary process to convert natural gas to syn diesel. Once that project starts up and goes commercial, it should help to diminish some of that excess capacity giving incentive to keep things moving in the gas industry.
Thack, FR wouldn’t be the same without your authoritative comments on the energy industry. Thanks.