The Obama administration has so far been slow to approve new export terminals for LNG, partly because of concerns that the US would lose its massive advantage in energy and feedstock costs for industry.
The administration has concluded that the US lead is now so entrenched that there is little to lose from a partial levelling of the global playing field. The expense of freezing gas for liquefaction to minus 260 degrees Fahrenheit and shipping it across the Atlantic or Pacific in molybdenum-hulled vessels is enough to maintain a big cost advantage for US manufacturers.
Four LNG terminals with a combined export capacity of 70 BCM are likely to be approved soon by the Energy Department. The front-runner is Cherniere's $18bn terminal at Sabine Pass in Louisiana.
Experts are split over whether North America really can become the world's dominant LNG player. Moody's warned earlier this month that most of the 30 gas liquefaction projects planned in the US and Canada will never get off the ground, chiefly due to the linkage between LNG contracts and the price of crude. "The drop in international oil prices has wiped out the price advantage US LNG projects," it said.
Michael Smith, head of Freeport LNG, said his company will press ahead regardless with plans for a $13bn plant near Houston, and predicted that the US could soon leap-frog all rivals to become the new gas hegemon. "Our projects are very competitive and we will continue to have an advantage over the rest of the world," he said.
LNG assets may not be a bad thing on a balance sheet. But even if there is more demand for gas from Europe or Asia, can gas producers really keep pumping it out at a loss for long?
26 Apr 2015 By Ambrose Evans-Pritchard
The US Energy Department prepares a wave of LNG gas permits in the latest move to redraw the world's oil and gas landscape
The United States is poised to flood world markets with once-unthinkable quantities of liquefied natural gas as soon as this year, profoundly changing the geo-politics of global energy and posing a major threat to Russian gas dominance in Europe.
"We anticipate becoming big players, and I think we'll have a big impact," said the Ernest Moniz, the US Energy Secretary. "We're going to influence the whole global LNG market."
Mr Moniz said four LNG export terminals are under construction and the first wave of shipments may begin before the end of this year or in early 2016 at the latest.
“Certainly in this decade, there’s a good chance that we will be LNG exporters on the scale of Qatar, which is today’s largest LNG exporter,” he said, speaking on the margins of the IHS CERAWeek energy summit in Texas.
Qatar exports just over 100 billion cubic meters (BCM), though Australia is catching up fast as the offshore Gorgon field comes on stream. It may pull ahead of Qatar later this decade.
Mr Moniz said the surge in US output from shale fracking has already transformed the global market. "We would have been importing a lot of LNG by now. Those cargoes would have gone elsewhere and have in fact had a significant impact in the European market,” he said.
Mr Mueller defiantly sweeps aside those who claim that the US fracking industry is in serious trouble, insisting that drilling costs are coming down so fast that his company - and others - are staying a step ahead of falling prices.
The US Energy Information Administration (EIA) expects gas prices to rise to $4.88 in real terms by 2020, and $7.85 by 2040. Gas sells at for $7 in Europe, and over $10 in North-East Asia, four times more expensive.
Ready to get the week started, these guys have been finding some solid plays for their members.
Sierra Club can save the forests and the water. And the air we breathe. They help the environment.
You are sooo right. The price of coal is at all time high, every other company in the sector is making profits hand over fist, BTU and ACI are blowing out the earnings estimates , WLT is at multi year high, all have been paying down their debt to almost nothing and buying their bonds and reopurchasing stock. Obama and his EPA minions are putting together requirement that coal to be more than 50% of energy supply before he leaves office...
But ANR stock is below $1. The only way to explain this must be a horrible management.
So, is Uncle Mike Bloomberg's Sierra Club money any good?
I just bought a new car and it runs on fossil fuel. The same type of fuel that most of the cars on the road still run on. What fantasy world are you living in where fossil fuels are a distant memory?
You haven't paid attention to the leaders in congress.... By then renewables will be putting out so much power, fossil fuels will be all but unnecessary....
When Elon Musk builds his solar panel factory, there will be minimal pollution. And if there is a bit, it will pay it back within a year of operation... Solar will put out for 20 to 40+ years of pollution free power...
India and other places will learn that new renewable technology will be paying off. Coal investments will be left in the coal dust. It's only a matter of time.....
...not trying to be combative, but how could that help? the industry loses money every quarter, and now, it doesnt matter who beats or who loses more...its about who can survive until the selling price of coal goes up.
its about the load of debt they all have and can they make payments and pay salaries.
the ship is sinking as far as coal is concerned. now its time to shoot some of the horses and reduce supply
The only hope left for ANR is by some miracle it beats this Q's earning. Let's face it, ACI and BTU already released bad Q earning, so there is not likely that ANR will be any better. RS will definitely will be needed just to stay listed on NYSE. Dilution will likely kill the stock again after that.
Reverse split is going to be as many as they can 30 to 1 if they can get by with it Then they are going to call the bonds that are callable May 26th pay with stock give people extra stock to take stock over cash then you have massive short selling again and you are back to where you are at now but less debt No hope for stockholders unless by a miracle the reverse split does not go thru then you would see massive short covering.. Sad when management already showed there hand in the poker game and everyone knows whats coming. Actually if they do go into Bk might be good because management would probably get threw out with the stock
Protesters would be better off putting a cork in the volcano erupting. Wonder how many years of coal production are being spewed into the atmosphere per hour from this eruption? Anyone know?