The large amount of natural gas available has fueled new speculation that the White House is set to expand exports
May 13, 2013 – The U.S. is setting new record for the production of natural gas and the times of surging prices due to shortages is being replaced by talk over how much should be exported. The large amount of natural gas available has fueled new speculation that the White House is set to expand exports.
Unthinkable just a few years ago because demand exceeded supply, exporting liquefied natural gas is today seen as a means to helping U.S. trade lessen the influence of other producers such as Iran and Russia.
President Obama and his administration are reviewing applications for at least 20 gas terminals for exporting. If all the applicants win approval, close to 41% of the total production in the U.S. could be exported this year, according to data from the Energy Department.
Over the past decade, gas production in the U.S. has jumped by 28% and this year will average a record of more than 69.9 billion cubic feet per day, said the Department of Energy last week.
A lobbying firm in Washington said a decision by the White House is possible in just weeks not months, with action taking place during the current second quarter.
Some users of natural gas, like Dow Chemical Co., are alarmed by the thought of exporting natural gas. Dow worries that if too much gas is used to export, then domestic prices will increase, wiping out the competitive advantage producers in the U.S. have over foreign business.
This year the production of gas will set a new all time high for the sixth consecutive year because of a surge coming from the shale formations such as the Northeast’s Marcellus.
Dow said there are sufficient enough supplies in the U.S. to export, but too much exporting could bring back the volatility of prices.