PLEASE READ this article and NOTE the support of both UDALL and BENNETT in EXPEDITING Liquid Natural Gas (LNG) exporting: (Did not attach link due to the fact that the Sentinel charges for viewing and we are not about to contribute a cent to this rag) The Grand Junction Daily Sentinel Exporting Liquid Gold Monday, July 15, 2013 The unlocking of unconventional oil and gas reserves in the United States has been an American success story harking back to earlier days of domestic industrial glory. The kinds of know-how and innovation developed in places including western Colorado’s own Piceance Basin are starting to be put to use in other countries, as well. But exports of American natural gas, the actual domestic product of processes such as hydraulic fracturing and directional and horizontal drilling, have been slower to follow. The exporting process itself isn’t simple. Unlike oil, gas must be liquefied in order to be shipped across oceans. But regulatory hurdles exist, as well. Among them is the need for Department of Energy approval where exports are proposed to countries without a U.S. free trade agreement. Such approvals have been slow in coming, according to the energy industry, which fears the delays will result in lost opportunities. Now a bipartisan group of 34 U.S. senators has written new DOE Secretary Ernest Moniz to express similar concerns and to urge his agency to start expediting consideration of 20 other applications after its recent approval of a second export application. U.S. Sens. Mark Udall and Michael Bennet, D-Colo., are part of that group and deserve the region’s appreciation for recognizing the importance of this issue and supporting quick action on export approvals. As the senators’ letter notes, if the United States doesn’t aggressively market these exports, many nations “may have no choice but to purchase energy from Iran and other nations that are not aligned with our own national interests.” More exports also would mean more domestic jobs and economic growth, including in places such as western Colorado, where drilling activity has been subdued for years due to low natural gas prices. Colorado Mesa University’s Unconventional Energy Center has backed the increased exports in a letter to the DOE, saying, “For the Western Slope of Colorado, access to export markets is exactly what we need to reinvigorate industry and boost our local economies.” Increased exports would allow more access to higher-paying markets. Natural gas is a commodity that, unlike oil, doesn’t have a global price. While domestic natural gas prices are below $4 per million British thermal units, the Federal Energy Regulatory Commission estimates that LNG is fetching $14.50 in Japan this month. The prospect of increased exports alarms certain interests, including domestic manufacturers reliant on affordable natural gas and advocates for residential gas consumers. But while new market outlets undoubtedly will shore up prices, increases will be moderated by the added cost of liquefying gas and getting it to distant markets, and the fact that more and more countries also are developing gas reserves using American-proven techniques. What exports will do is help provide for the kind of minimal price increase that could make the difference between a company drilling on a lease or sitting on it in places like western Colorado. Secretary Ernest Moniz to express similar concerns and to urge his agency to start expediting consideration of 20 other applications after its recent approval of a second export application. U.S. Sens. Mark Udall and Michael Bennet, D-Colo., are part of that group and deserve the region’s appreciation for recognizing the importance of this issue and supporting quick action on export approvals. As the senators’ letter notes, if the United States doesn’t aggressively market these exports, many nations “may have no choice but to purchase energy from Iran and other nations that are not aligned with our own national interests.” More exports also would mean more domestic jobs and economic growth, including in places such as western Colorado, where drilling activity has been subdued for years due to low natural gas prices. Colorado Mesa University’s Unconventional Energy Center has backed the increased exports in a letter to the DOE, saying, “For the Western Slope of Colorado, access to export markets is exactly what we need to reinvigorate industry and boost our local economies.” Increased exports would allow more access to higher-paying markets. Natural gas is a commodity that, unlike oil, doesn’t have a global price. While domestic natural gas prices are below $4 per million British thermal units, the Federal Energy Regulatory Commission estimates that LNG is fetching $14.50 in Japan this month. The prospect of increased exports alarms certain interests, including domestic manufacturers reliant on affordable natural gas and advocates for residential gas consumers. But while new market outlets undoubtedly will shore up prices, increases will be moderated by the added cost of liquefying gas and getting it to distant markets, and the fact that more and more countries also are developing gas reserves using American-proven techniques. What exports will do is help provide for the kind of minimal price increase that could make the difference between a company drilling on a lease or sitting on it in places such as western Colorado.
Posted on: Tue, 16 Jul 2013 14:49:30 +0000
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