Cartoon Of the Week
Politically I align myself with patriotism for my country and its long term welfware. Both parties fail my hopes for my children.
I railed mercilessly on Biden for his anti-oil energy policies, how he drained the SPR for political favor and now I am railing on Trump, and my party, for its energy policies, which appear to have the intent of draining the entire country of affordable hydrocarbons within the next four years.
It seems a contradiction in terms to be trying to "make America great," at the same be exporting the last of its hydrocarbon resources to foreign countries. Including, for God's sake, China.
America does not have 100 years of affordable natural gas under our feet, not by a long shot. That is a lie told by people that make money exporting America's hydrocarbons. Non-associated gas from the Marcellus in the APP Basin has been way over exxagerated. I will show you some engineering on that subject soon.
Associated gas from gassy tight oil wells like the Permian have the life expectancy of a fat labarador retriever; wells reach bubble point, liquids decline and not far down the road so does associated gas. Feel good about the Haynesville? New hope for the Fayettville? That will all take + $5 natgas prices, sustained, as will other unconventional pipe dreams.
LNG exports from the U.S. broke a record last week at 16 BCFPD. With pipe exports to Mexico of 7.0 BCFPD that puts us at nearly 25% of total U.S. production being exported.
Republicans are just getting started...
"DOE has authorized 48 billion cubic feet per day (Bcf/d) of natural gas for export, or nearly half of current domestic production."
I think folks lending the money on new pipe in the ground and all new export facilities will come to their senses and half of that will never occur. We can always hope, anyway.
Here's an example of what over zealous LNG exports can do to a country: Australia exports 80% of its natural gas, mostly to Asia, mostly to Japan.
Japan pays less for its imported natural gas from Australia than Australians pay for its own natural gas in Adelaide, or pretty much anywhere else in the country. And they are pissed.
There is now a plan to turn a LNG export terminal in W. Australia into an import terminal, so that Japan can sell Australian natural gas in storage back to Australia. No joke.
If you think that movie isn't coming to a theatre near you in America in the future, you would be terribly wrong about that.
Mr. Global is a fella named Matt Randolph, an oil man from Oklahoma City operating under Sentinel Energy. His company operates in Oklahoma, Texas and Louisiana. I suspect he has skin in the game and is another oil man with enough real life experience in decline and depletion to be worried about U.S. oil and natural gas exports. Imagine that !
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