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Natural Gas: a "bridge" to where?

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The bottom line: that the bridge fuel concept for natural gas represents ‘wishful thinking’ and is not possible to achieve.

Natural Gas: a “bridge” to where?

About Sharon Wilson

Sharon Wilson is considered a leading citizen expert on the impacts of shale oil and gas extraction. She is the go-to person whether it’s top EPA officials from D.C., national and international news networks, or residents facing the shock of eminent domain and the devastating environmental effects of natural gas development in their backyards.

Comments

  2. Morgan says

    Seen this? There goes the defense of providing domestic energy and keeping prices down.

    Feds OK export of natural gas
    By Lou Kilzer, PITTSBURGH TRIBUNE-REVIEW
    Saturday, May 21, 2011

    A Texas company won approval on Friday to ship 2.2 billion cubic feet a day of natural gas from a terminal in southwest Louisiana to China and other foreign markets that do not have free trade agreements with the United States.

    The Department of Energy gave its approval for Houston-based Cheniere Energy Inc. to ship liquefied natural gas, or LNG, from its Sabine Pass port in Louisiana.

    Cheniere Energy shares jumped $2.35, or 30.6 percent, to close at $10.04.

    The government action was cheered by Cheniere CEO Charif Souki as giving its "customers the option to purchase or sell LNG from and to the U.S. markets."

    "This ability to export natural gas will further stabilize production for U.S. consumers," Souki said.

    The action was criticized by Paul Cicio, president of the Industrial Energy Consumers of America, as misguided and predicted it would have a "devastating effect on the price of natural gas in the United States."

    Natural gas futures added 12.9 cents to settle at $4.290 per 1,000 cubic feet yesterday, rising after approaching a six-week low on Thursday. The futures are down 40 percent from two years ago.

    Cicio's organization represents American manufacturers that had combined sales last year of $800 billion, according to the group's website. Cicio said his organization is "examining our legal options," and charged that the government decision making was based on studies that were "terrifically flawed."

    Only eight years ago, the idea that the United States could become a natural gas exporter was considered nearly impossible. In 2003, the U.S. Energy Information Administration projected increasing deficits in natural gas and the need to build gas importing facilities. At least two dozen such projects were then on the drawing board.

    Gas production in the United States took an unexpected turn as a major oil shale field in Texas called the Barnett showed that new technology — horizontal drilling combined with hydraulic fracturing of shale rock deep underground — could produce large quantities of what was before thought to be unrecoverable natural gas.

    That was followed in the next few years by discoveries of large shale gas deposits in other locations, including the Marcellus formation in Pennsylvania and nearby states.

    Currently, experts predict natural gas from shale deposits can supply the nation for years. The Energy Department said yesterday that the United States has nearly 2 trillion cubic feet of natural gas in underground storage and supplies have been steadily growing.

    Cheniere said that under the Energy Department decision, it will have seven years to begin exports after Federal Energy Regulatory Commission approval. The terminal will maintain its ability to import LNG.

    Last year, Cheniere applied to export LNG to countries without free trade agreements with the United States. That was followed by two more applications by ports in Louisiana and Texas. Also, Dominion Resources Inc., which operates a facility in Cove Point, Md., said it was talking with customers about possibly using that facility to export Marcellus shale gas.

    Overseas, natural gas can be sold for double or triple the U.S. price. Even when the cost of transportation and liquefaction are figured in, Barclays Capital recently reported, "North American LNG can be competitive in the global market."

  3. Anonymous says

    I tell you where the bridge leads,

    to hell

    and the only hand basket…

    a coffin.

    -FrackingCrazy

  4. scubawithdogs says

    Ok, My question is why is the natural gas industry saying we must drill in these shale plays so we can be more energy independent and they they turn around and sell percentages of the Eagle Ford Shale to China, India, and Canada?

    Chesapeake and Conoco/Phillips needs to be called out on this little bit of bullshit. They are worried about being more energy independent my ass all they care about is profits and share prices and screw the American public. I am so sick of seeing these pricks wrap themselves in the American Flag why screwing the American public.

    Major deals signed
    Oklahoma City's Chesapeake Energy, the largest leaseholder with 625,000 acres, also expects to double the dozen rigs it has working in the area. Ditto for Houston's Petrohawk Energy, which expects to spend more than twice as much as it did in the region in 2010. And ConocoPhillips, another major leaseholder, just leaped from seven to 11 rigs in the region.

    "It does appear it will be a very busy year in the Eagle Ford," said Jim Lowry, a spokesman for the Houston-based ConocoPhillips.

    U.S. shale plays, including the Haynesville in Louisiana and Marcellus in the northeast, are expected to provide a major boost to domestic natural gas supplies in coming years. But with gas prices low, some operators have been forced to curtail output.

    And Eagle Ford, with its high content of valuable crude and natural gas liquids, has proved a haven for those who bought in early.

    "The economics in the Eagle Ford are probably better than in almost any other play in the world," Eads said. "The returns are stunning."

    That helps explain a recent surge of big-ticket deals there.

    In October, China's CNOOC agreed to pay $1.1 billion for a 33 percent stake in Chesapeake's Eagle Ford acreage, marking its first U.S. onshore asset purchase. That same month, Statoil said it was joining forces with Canada's Talisman and would pay Enduring Resources $1.3 billion to develop Eagle Ford acreage.

    In June, India's Reliance shelled out $1.3 billion to buy acreage and form a joint venture with Pioneer Natural Resources Co. And earlier in the year, BP and Shell bought into the play. Exxon Mobil Corp., the world's largest public oil company, also has a position in the Eagle Ford.

    Read more: http://www.chron.com/disp/story.mpl/business/7362773.html#ixzz1NJJxtS9k