It is good to see at least one energy finance analyst at the Institute for Energy Economics and Financial Analysis, speaking commonsense. In an article by Clark Williams-Derry for Barron Magazine [SEE HERE], the author accurately outlines how significant U.S. Liquified Natural Gas (LNG) exports are driving up natural gas prices for American consumers.
The author accurately refutes the notion that exports do not drive-up domestic prices, by walking through the example of how natural gas prices dropped for U.S. consumers when the liquefied natural gas plant in Quintana, Texas [Freeport LNG] was temporarily shut down, blocking a portion of the export capacity. However, that facility is about to come back on-line and with increased exports from other facilities domestic U.S. prices have already doubled.
According to the U.S. Energy Information Association (IEA), U.S. storage of Liquified Natural Gas (LNG) is 12% below the five-year average (LINK). Additionally, the IEA is expecting the U.S. to export 11.7 billion cubic feet of LNG per day during the fourth quarter of 2022 — up 17% from the third quarter. The destination of that export is Europe.
Consider that 43% of U.S. households use natural gas for home heating, and power suppliers use natural gas to create electricity. With the massive 2022 exports of LNG to Europe (+17% in fourth quarter alone), that means lower domestic supplies and increased prices here in the United States for electricity and home heating. We are seeing and feeling these massive price increases right now.
Barrons – […] If you need more evidence of the impact of natural gas exports on prices, just compare supply and demand fundamentals for the year leading up to February 2020 (the last pre-pandemic month) versus the year leading up to this May (the most recent month with full federal data). Annualized production rose over the period, while domestic consumption remained roughly flat. Yet LNG exports almost doubled—a surge that tightened U.S. gas markets and doubled the price that U.S. consumers pay for the fuel.
The growth of global demand for U.S. LNG can be tied to many market forces, including the shortfalls in Europe due to Russia’s manipulation of European Union gas markets. Sustained high demand in wealthy Asian nations has contributed to export growth as well. And so has the U.S. gas industry’s dogged determination to ship its wares to the highest bidder, foreign or domestic.
Russia’s role has been particularly critical in the rise of global LNG demand. As Russia choked off gas shipments to Europe, EU buyers have turned to global LNG markets to make up the shortfall. Global LNG prices rose in response, and U.S. LNG companies ramped up output, shipping more cargoes to Europe. But Russia responded by further clamping down on gas supplies to the EU—a vicious circle that has hurt Europe’s economy even more severely than it has harmed America’s.
There’s little sign that U.S. gas prices will ease in the coming years. Freeport’s demand will be back online soon enough, and there are three other massive LNG export projects under construction, with more than a dozen of others waiting for financing.
[…] Curiously, federal regulators have consistently found that the gas export projects are in the public interest—meaning they were in the economic interest of LNG companies and gas drillers. But now, exports are creating sky-high costs for U.S. consumers, and drillers are reluctant to boost gas output lest prices fall back to earth. So, it’s high time to consider whether soaring U.S. LNG exports are actually in America’s interest—or if, instead, runaway LNG exports are fueling energy inflation and undermining the nation’s economic competitiveness. (read more)
Not only are U.S. taxpayers directly paying for the majority of costs in Ukraine, but we are also subsidizing the European Union by exporting LNG and driving up the price for energy here at home.
We the taxpayers are directly paying Ukraine, and indirectly paying Europe to maintain gas sanctions against Russia. As a result, we the taxpayers are also paying higher prices here at home. This is the reality of the current exfiltration of wealth as created by the Biden administration.
FUBAR
humanity imploding … our “CREATOR” warned “HIS” creation what would happen … the rest is history … me … i am …’ all in’ on riding “HIS” coattails to the finish line … ( and it’s not going to be pretty … )
You are so right and the ironic part is that America can be saved if the real Christians willTurn back and seek God by repentance. The same goes with voting if Christians would vote in mass this country would be turned around so I put most of the blame On so called Christians.
Oh please stop these lies. Russia and the orthodox are the real Christians, not you invasive/destructive/ blaming “Americans”.
Say there Rose, I’m a Christian regardless of where I live or what church I go to. If I believe in my heart that Jesus was God’s Son, that he was crucified on the cross, but rose from the dead on the 3rd day and that His death was the atonement for my sins and I have accepted Him as my only true Savior, I’m a Christian period full stop.
https://www.marcotosatti.com/2022/09/08/ratzinger-tyconius-and-fatima-an-interpretive-key-for-the-end-times/
Do not confuse the installed gov’t in the US with Americans. About half the country is paying taxes and supporting the rest…at least until they just started “printing” money out of thin air and it started vanishing into thin air. The half paying the bills is busy at work, raising families, putting dinner on the table,and fighting the communists who have infiltrated every good institution we had. Trump exposed the vote fraud, but until then most folks voted for the pol who promised to end wars and make things fair trade wise…and every time we were lied to. The worst being G.W. Bush. No one voted for Pedo Joe, at least not enough to beat Trump. So the ousting of Trump revealed the extent of it all: SCOTUS, Congress, the VEEP, state gov’ts, ALL colluded against the American people, revealing that voting is meaningless. They do what they want, and arrest protesters now, just like China. LtoL is correct about Christians. America, once a Christian nation, has apostasized, gone pagan and is reaping the fruit of that. Prayer, and penance are paramount. Our local Catholic parish voted overwhelmingly for Pedo Joe, simply because they are elderly and watch CNN, so they hate Trump. When asked about abortion, they don’t care, even though Trump is the most pro-life president we have had in recent times, and CINO PedoJoe the least. If it helps, the US gov’t HATES “Americans”, especially Christian ones, too.
With respect, it’s “repentance”, a humble change of mind, heart, and conduct, which God sees and honors, not “penance”.
Two different things…
Wow Rosie … who are you getting your fake news from.
I’m seething! No one in Congress has the balls to stand up and do something to stop this madness.
Since the U.S. abc agencies began bombing, setting fire to food facilities last year and continues unabated to the U.S. and NATO’s proxy war in Ukraine with the corrupt Zelinsky (who’s currently renting out one of his villas in Italy for 50k a month, owns many properties across the globe including in FL,) I cannot stem my anger.
Congress is screwing us on purpose, ushering the WEF’s nwo. Europe is doing the same. Midterm elections won’t change a dam thing.
Stephanie, check out that VOA article linked in my comment below.
“Von der Leyen said during the press conference that the EU would contribute financially and technologically to help Egypt with food production.
“These investments will support food systems in your region and elsewhere so that we can together discuss how to develop solutions and technologies … modern technologies of precision farming … new crops adapted to climate change, because it is important for us that the production of food in the region is increased and the dependency on other regions is decreased,” she said.”
Zee Bugz
Ursula has already done enough harm without even asking any of us in the EU. Ukrainian wheat, as well as US LNG, is going to EUROPE not to Africa!!!!
When Biden could obtain 80 million votes from campaigning in his basement , the fix is in for the midterms
Sadly, and scared to death for the future of our once great country (given the pace of destruction thus far) I know you’re right. 💔😥
Tidbit: Israel’s Leviathan gas field is projected to start flowing natural gas in about two weeks. A memorandum of understanding among Israel, Egypt, and the EU was signed three months ago. Israel will pipe natural gas to an Egyptian LNG plant then Egypt will sell and deliver the LNG to an EU facility.
If you read the article linked below, the last few paragraphs look like the workings of the WEF and the Atlantic Council.
https://www.voanews.com/a/eu-egypt-israel-agree-to-export-israeli-liquified-natural-gas-to-europe/6618920.html
Here is a resource page about LNG facilities for the curious.
https://www.mechademy.com/lng-plants/
I’m Confused. I thought exports were a good thing?
“Not only are U.S. taxpayers directly paying for the majority of costs in Ukraine, but we are also subsidizing the European Union by exporting LNG and driving up the price for energy here at home.”
Yes I get that. But isn’t Europe paying US energy suppliers and shippers for the LNG we are shipping to them? This should be a GDP plus (a good thing). Yes due to good old supply and demand, with demand high and supply low we and the Europeans pay more.
A few years ago I was hearing about gas wells being drilled and capped because we had more than we needed or could sell. And didn’t President Trump promise Europe the US would supply all the LNG they needed if they would shut down Nordstream II and not depend on Russia for their gas needs. I believe the speech was made in Poland.
Once again, just like the rest of our current inflationary BS, the problem isn’t over demand its the Biden Government curtailing supply with it’s F’ed up economic policies chocking off fossil fuel energy supplies.
I guess all the Biden supporters and voters are dancing in the streets celebrating.
FJB and every SOB who voted for him.
You answered your own confused question.
Yes exporting lng ins good as long as you can keep up with the supply.
But we’re not allowed to drill more wells.
Under Trump we could drill all wanted.
He had relaxed all energy exploration and drilling.
Biden “supporters” are in cemeteries, illegals & welfare plantation inmates – they don’t read, watch the news or care what’s happening … LBGTQUXYZ are spreading monkey pox and destroying children … BLM and ANTIFA are waiting on their next orders from the FBI & DOJ to riot … RATS & RINOS are collecting our tax dollars disguised as kickbacks … the Soros Committee of Evil is in control.
The Biden régime and the foolish EU combined have set the stage for the present débacle. The USA pretends to help its “ally” EU, but it hates Russia and the EU does as well. Do not blame Russia. It has only followed the pathe of the illegal sanctions. why should it try to help those who hate it and tried to destroy it???
The WEF-“Biden” regime want Russia and nationalist Putin “regime changed” and a more sympathetic Zelenskyy style puppet installed. It is Putin’s nationalism they hate, just like they hate Trump’s nationalism, and is why their puppets have all opened borders to destroy the individual national identities. Islam and communism are compatible.
The WEF-“Biden” looting out feeding frenzy on what’s left of America continues.
This is a hugely important issue that Sundance raises. It is being completely ignored by other media outlets.
You can see from this chart https://tradingeconomics.com/commodity/natural-gas the impact that the fire this past June at the LNG plant in TX had on the domestic price of natural gas. Before the fire the price had risen to over $9 / MMBtu and then plunged to just over $5 / MMBtu. Since then the price has gone up to over $9 / MMBtu. What is going to happen when that LNG plant comes back online in the next few weeks?