Texas Natural Gas Glut

[peakbagger]

Texas natural gas drops toward zero as output swamps pipelines

Natural gas prices in the Permian Basin of West Texas are plunging toward zero as booming...

www.chron.com

Definitely a failure on a national basis to put in enough pipeline capacity over several administrations.

 

[EbS-P]

They had a fire at an export terminal. Don’t know how that relates to total excess amounts.

Freeport LNG aims for November restart at fire-hit Texas plant

U.S. liquefied natural gas (LNG) producer Freeport LNG aims to return 85% of production from its fire-hit Texas plant by late November and achieve full operation by March, the company said on Tuesday.

www.reuters.com

 

[peakbagger]

Right now selling natural gas offshore is far more profitable than in the US but that is short term thing due to the Ukraine situation. LNG plants costs billions and years to build. Odds are the Ukraine mess will be over before a single new from the ground up LNG plant will go online. The US really has needed a national natural gas pipeline strategy for years but long term policy issues get lost when the only thing that gets done in Washington is partisan bickering. Interstate pipelines just do not get built in denser parts of the country due to NIMBY and that would require the FERC to effectively force construction of lines which would not be popular in many states. Those pipelines that Manchin wanted to get expedited were not for US gas consumption, they were to supply the exports markets. Note the environmental community has not been a help, they have been actively assisting in stopping pipeline expansions to try to force a switch to renewables but the reality is the transition to 100% renewables is going to need fossil for a lot longer.

 

[stoveliker]

I do hope the Russian mess in the Ukraine (...!) is over in a few years.

 

[EbS-P]

I do hope the Russian mess in the Ukraine (...!) is over in a few years.

How’s the North Korean mess over 1/2 century later? I think it will be like more like that.
sanctions and embargoes of Russian products are here for the foreseeable future. Armed conflict may subside rebuilding may begin but Russia crossed a line (one we let them cross before with not much punishment) and most of the world won’t let them off the hook.

 

[peakbagger]

I wish I had a crystal ball, hopefully the world dodges the nuclear bullet and my guess is in year or so the energy markets will have reorganized itself to work around the current supply disruptions.

 

[begreen]

Sounds like there is a plan in the works that will help oil companies have a predictable return on future oil development. Oil industry leaders remember spending loads of money early this century only to see oil prices crash in 2014‒2015, thanks to Saudi manipulation. They don’t want to risk that again. Today’s higher prices don’t remove the fear prices will be lower in 2025 and beyond. This is a step at providing better future assurance.

With other countries manipulating the price of oil, maybe the US, a top energy producer and exporter, can play that game too.

FACT SHEET: President Biden to Announce New Actions to Strengthen U.S. Energy Security, Encourage Production, and Bring Down Costs - The White House

President Biden is committed to doing everything in his power to respond to Putin’s Price Hike at the pump, and he is delivering. Gas prices fell at the fastest rate in over a decade this summer, with average prices down by about $1.15 per gallon since their peak in June – and just about 30…

www.whitehouse.gov

 

[peakbagger]

IMHO, that concept is winner. Lots of firms want to drill but their investors lost their shirts a few years ago when OPEC dropped the prices to successfully drive the US producers out of business. With the government acting as a backstop, this means the drillers can get back out in the field.

 

[EbS-P]

A good reminder that capitalism needs regulations and some guarantees

 

[peakbagger]

No doubt that with a government backstop, some hedge folks have already figured a way to make a buck

 

[begreen]

There's a darker side to this situation. Worse than coal rolling.
(broken link removed to https://finance.yahoo.com/news/first-comes-sub-zero-gas-143824499.html)

 

[peakbagger]

Time to make some bitcoins Bitcoin miners were building portable mining facilities run on generators modified to run on flare gas to generate bitcoins. Not sure with the bitcoin collapse if it still makes sense. A lot easier to export bitcoins over an internet connection than to get flare gas to a natural gas network that is charging to accept the gas.