WASHINGTON (Reuters) - Backers of liquefied natural gas will launch the first major campaign on Monday to press lawmakers to allow the sale of more U.S. gas abroad, as the industry push for exports intensifies.
The effort by the Center for Liquefied Natural Gas will include a new web site and outreach aimed at policymakers and the public, making the case that selling the nation's surplus natural gas to foreign countries will yield significant economic benefits and not drastically raise prices.
"There is a lot of stranded investment waiting to be unleashed in these projects that would pour billions of dollars into local and national economies, if the regulatory process would be freed up and allowed to move forward," Bill Cooper, the head of the LNG trade group, told Reuters.
While the abundance of NG in America is evident, and fracking not being economical at low prices, the ability to profit in the GOM is more evident than ever. The discussions about LNG and the export prospects represent forward thinking by MMR. The US is about to become a major exporter of LNG. (That is, an importer of money.) LNG facilities are being planned all over the US and other NG rich areas. Thus, the GOM discoveries will be marketed very effectively to those who wish to buy, right now, ie. Japan wants out of nuclear and China wants more energy.
MMR is holding a huge lifetime supply of NG. It's options are strong. It Can borrow, it Can sell, it Can partner, and it Can hold the course. The long term deals would just guarantee another option. All of this shows savvy and experience by MMR, and I see a future for the EXPORT business.
Isn't Cheniere poised to take extra NG and add LNG "trains" to increase their exportation when the canal is widened? Seems like current price is $5 in Asia/China which is much higher than here. Seems like a natural play. Wrong?
Good summation. DJ 1 & 2 would make them a very big player on a reserve basis alone, especially when you comp it to shale plays. Was reading RRC's presentation with regard to Marcellus. They are talking roughly 35 tcfe potential there in their massive acreage position. DJ block alone could equal that, and with better economics. Lafitte & Highlander could triple it. Owning part of the storage & distribution only helps their case. The have all their ducks in a row, now it's time to put some production on the table and prove out the theory. Just mho.