Free Republic

Texans increased their use of natural gas to fuel cars and trucks in 2013, but reduced its use to power lights and appliances, according to new federal data. Natural gas used for vehicle fuel in Texas jumped by more than 16 percent between 2012 and 2013, data from the U.S. Energy Information Administration show. Meanwhile, less electricity was generated from gas in 2013, down by nearly 7 percent. That reversed a trend seen in recent years as utilities shifted from coal-fired to natural gas-fired power plants to take advantage of low-cost natural gas, with its price in the Untied States...

Right on cue, as it becomes obvious that Europe needs to be less dependent on Russian gas and oil, environmental groups here in the US have begun stepping up presure on President Obama to reject building the infrastructure necessary to help realize that strategic need. A coalition of environmental groups is calling on the administration to reject permits that would build Liquid Natural Gas (LNG) export terminals. Environmental groups called on President Obama Tuesday to reject pending applications to build liquefied natural gas (LNG) export terminals, citing the negative impacts from natural gas throughout its life cycle.The pressure from green...

The US Federal Energy Regulatory Commission has issued a draft environmental impact statement (EIS) on Freeport LNG’s Phase II modification and liquefaction projects. FERC concluded that “construction and operation of the projects would result in adverse impacts on certain resources and nearby communities.” FERC said, “We have identified that there would be significant and unavoidable impacts on residents of the town of Quintana due to construction noise and construction traffic if the projects are approved by the commission.” The commission added, “However, other adverse impacts would be reduced to less-than-significant levels with the implementation of Freeport LNG’s mitigation measures and...

How specifically should the United States react to Russia’s Ukrainian intervention? The owner of one Knoxville, Tennessee liquor store has weighed in by having a fire sale on Russian vodka, which he won’t re-import until Moscow “gets its act together.” Former U.S. Representative and Republican (and Libertarian) presidential contender Ron Paul seems to have the opposite attitude, and thinks any sanctions against Russia by Washington would be “criminal” acts intended to provoke a war. Loosening restrictions on American exports of liquefied natural gas (LNG) rests somewhere in between these two approaches and has been advocated by a cast as diverse...

Geopolitics: Four central European nations have appealed to the U.S. to increase natural gas exports should Russia cut off its supply to Ukraine. We are the superpower of energy. Time to give Vladimir Putin some gas pains. Hungary, Poland, Slovakia and the Czech Republic sent a letter Friday to House Speaker John Boehner, with a similar letter expected to be sent to Senate Majority Leader Harry Reid, asking the U.S. to expedite approval of natural-gas export applications. These nations believe a steady gas supply is key to the region's economic and geopolitical stability. Putin's Russia has used its energy resources...

The hand-wringing over what to do to help Ukraine has had a very positive impact on the U.S. oil and gas industry. Politicians like Sen. Lisa Murkowski (R-AK) are seizing on the crisis to call for a lifting of the ban on U.S. oil exports — the better to counterbalance Russia’s petro-influence. While the Wall Street Journal this morning wrote that western politicians are working on a variety of options to help “loosen Russia’s energy stranglehold on Ukraine” including “larger exports of U.S.-made natural gas.” Nevermind that the U.S. currently exports no natural gas in the form of LNG because...

U.S. tankers carrying cheap natural gas will ride a massive wave of demand to Chinese shores in coming years, but they won’t unshackle the high price Asia pays in the global gas trade from oil indexes, energy executives said Wednesday. And analysts predicting wholesale changes in global LNG markets – such as widespread adoption of cheaper pricing and more flexible supply contract terms – are likely to be disappointed, even after the advent of bargain-priced American liquefied gas exports, BG Group CEO Chris Finlayson said during a panel on the third day of the massive IHS CERAWeek energy conference in...

Chevron Corp. Chairman and CEO John Watson said the United States should get on with exporting oil and liquefied natural gas, saying that U.S. consumers and allies of the United States would benefit. “The debate over the benefits of free trade was won a long time ago,” Watson told attendees at the IHS CERAWeek conference Tuesday in Houston, noting the role that free trade has played in facilitating economic growth. The benefits of export and free trade pose a “very straightforward, economic argument for consumers and the nation,” Watson commented. While the controversy over exports of liquefied natural gas (LNG)...

A prescient House Energy and Commerce Committee report released last month, just in time for Russia's invasion of Ukraine, suggested that "by becoming a natural gas exporter, the U.S. can supplant the influence of other exporters like Russia and Iran while strengthening ties with our allies and trading partners around the world." President Obama does not want to use military force to counteract Russia. His 2015 Budget, due out this week, will shrink the military still further. But he has another weapon at his disposal, liquid natural gas exports. Congress and the president should without delay pass laws to make...

Like many conflicts before it, the current battle brewing between Russia and Ukraine has a strong energy component. Russia has a history of using its energy supplies as a control mechanism—such as the 2006 and 2009 gas wars when it cut natural gas supplies in the midst of winter and left many European nations, which rely on Russian natural gas that is shipped through Ukraine, without energy. The supply disruptions were due to “disputes over politics, price, and late payments,” says the Washington Post. Back in November, before the current conflict erupted, Reuters reported: “Ukraine has for years been a...

The number of light-duty vehicles running on natural gas will more than double over the next decade to 39.8 million traveling on roads worldwide, according to a new report by research firm Navigant. Despite the rapid growth, natural gas will continue to have a modest market share compared to gasoline and diesel in 2023, fueling just 2.6 percent of the cars and light-duty trucks on the road, Navigant projects. A significant number of natural gas vehicles are already on the road in Brazil, Pakistan, Argentina and India, the report notes. But popularity is growing in North America, as well, driven...

Companies developing multibillion-dollar Gulf Coast plants to export cheap domestic natural gas or make things with it are encountering a harsh reality: There aren’t enough skilled hands to do all that building. “It causes a big concern about what’s going to actually happen when it comes to fulfilling these jobs,” says Michael Bergen, executive vice president of Industrial Info Resources, a Sugar Land-based market research firm. It projects that companies ?will invest more than $64 billion to build at least seven liquefied natural gas facilities along the Gulf Coast in the coming years. And if demand for labor drives up...

Natural gas has become the fuel of choice for several large companies with vehicle fleets. Now, smaller firms are beginning to catch on to the trend, too. With a little nudging, companies that don’t have their own refueling stations are finding ways to start moving their goods and workers on natural gas. “The fact that it’s $2 a gallon cheaper makes it a no-brainer,” said Mike Little, director of transportation for Bryan-based Mid South Baking, which delivers buns and other products to quick-serve restaurants across the South. On an energy equivalent bases, diesel costs around $3.65 per gallon in Houston...

The diesel-burning locomotive, the workhorse of American railroads since World War II, will soon begin burning natural gas — a potentially historic shift that could cut fuel costs, reduce pollution and strengthen the advantage railroads hold over trucks in long-haul shipping. Rail companies want to take advantage of booming natural gas production that has cut the price of the fuel by as much as 50 percent. So they are preparing to experiment with redesigned engines capable of burning both diesel and liquefied natural gas. Natural gas "may revolutionize the industry much like the transition from steam to diesel," said Jessica...

If you want to know just how bad an idea it is for America to ship “fracked” natural gas to overseas markets, travel the 65 miles from the White House to a place called Cove Point in southern Maryland. Sound good yet? There’s more: The Cove Point plant in Maryland is just one of more than 20 such “liquefaction” plants now proposed—but not yet built—for coastal areas nationwide. They are intended, as an emerging facet of U.S. energy policy, to double down on the highly controversial hydraulic fracturing drilling boom across the country. But like the Keystone XL pipeline for...

Half of Encana Corp.’s drilling rigs are running on natural gas, which will save the company $200,000 to $1.5 million in annual fuel costs, the company’s CEO said during a Houston conference Tuesday. Speaking at World LNG Fuels 2014, Encana CEO Doug Suttles touted the Canadian oil and gas producer as a leader in using natural gas to power drilling rigs, hydraulic fracturing equipment, and even pickup trucks. About 30 percent of Encana’s pickup truck fleet run on natural gas, he said. Encana can save between $1 million and $1.5 million in annual fuel costs by using natural gas tapped...

Abundant, low-cost energy courtesy of the shale revolution incentivizes chemical producers and manufacturers to shorten their respective supply chains and return production facilities to the United States. As a result, railroads, trucking companies, marine shippers and even airlines are well-positioned to enjoy new growth opportunities. So says PricewaterhouseCoopers (PwC), which recently released a study outlining how transportation and logistics companies should benefit from oil and gas production from shale plays. Key conclusions of the report, "Shale energy: A potential game-changer," include: In addition to moving greater volumes of crude oil from shale plays, railroads provide a flexible and cost-effective option...

Alaska has signed an agreement with major oil and gas firms to build an 800-mile pipeline to bring natural gas from the state's North Slope to a proposed export plant and on to Asia. The project, expected to cost between $45 billion and $65 billion, would be one of the largest projects of its kind in the world and would free gas stranded for decades without a market. The project, which would liquefy the gas for shipment in tankers overseas, is expected to take ten years to build, according to the state. Asian nations like Japan and South Korea are...

FERRY company Brittany Ferries has just placed an order for a new vessel that will be its largest, cleanest and most environmentally-friendly ship to date. The €270million cruise-ferry will be powered by Liquified Natural Gas (LNG) which emits 25% less carbon dioxide than traditional oil engines – and, as it burns with a clean flame and no smoke, emits no dust, soot or sulphur and is low in nitrogen oxide emissions.

The price of oil is basically the same the world over. This is because fleets of ships and miles of pipelines transport oil from where it is plentiful to where it is needed (although a Carter era law bans the export of US oil). The only difference in oil price is due to its varying quality and the cost to transport it. Not so for natural gas. In the US, gas costs around $4 per MMBtu (million BTU, about a million cubic feet). In England, the price is $8, and in Japan, the price is $16. Why wouldn't someone liquefy...