An oversupply of NG in the NE?/Work in India?

[Aman A.K.A. Ahamburger]

There were some rumblings on the other board about an oversupply of NG. However, a point was brought up before that about NG costing $10 mBtu in Asia. This is what things are going to look like going forward.

What if the U.S. Became a Net Exporter of Liquefied Natural Gas?:
seekingalpha.com/article/242898-what-if-the-u-s-became-a-net-exporter-of-liquefied-natural-gas?source=feed

Limitations in frac equipment, liquids processing, and pipeline capacity may keep production levels in various plays at bay, but the sheer size of the recent finds and the increase in production levels should allow for the over supply situation to persist. So what is the solution? Simple, increase exports of natural gas. If you say that to some people in the natural gas business you might get laughed at (I know) but lets take a closer look anyway.

The price of natural gas in the US is less than $4.25 per million British thermal units (mBtu). The price of natural gas in Asia is $10 per mBtu. This is an opportunity for major profits. The problem is the natural gas market is for the most part local.

*Good examples of innovation in the article

The fact that the US may be on its way to becoming a significant exporter of natural gas rather than a significant importer is amazing and seems inevitable. If shale gas development and extraction continues on its current pace this will become a lucrative new business. The US could soon be competing to supply the world with natural gas. If the US exported just a small percentage of its natural gas, it would become one of the largest exporters of LNG in the world. The US can compete with any country regarding natural gas costs and reserves. China and Great Britain have become net importers rather than net exporters of natural gas along with a number of other countries.The global demand for LNG is evident. The US supply is abundant and cost effective.

This is exactly what some of us have been talking about, and it's starting to catch on.
Innovation+the FACT that we have conserved our natural resources here(for some strange reason )+ the FACT that there will be a least 1 billion more people becoming part of the global service economy in the next 5 years= Growth for USA and Canada.

It's all about innovation and volume!

[scaredshirtless]

I'll just keep my 190 acres sitting on Marcellus Shale thank you!

Oh... I own the rights - Chesapeake Energy knows!

Bring it on!!!!

[Aman A.K.A. Ahamburger]

Nice S_S. That is kick ass brother!!

Another angle of things going overseas. Since everyone seems to say that these jobs will never come back. Maybe some work on the road in a different country would be an alright thing to do for a while.

India Can't Find Enough Laborers for Singh's $1 Trillion Plan
www.bloomberg.com/news/2010-12-20/india-can-t-find-enough-laborers-to-build-roads-in-1-trillion-singh-plan.html

Sydney-based Leighton, Australia’s biggest construction company, is building India’s longest road tunnel.

They need skilled workers like crazy, the article states that there will be a project 83 million construction jobs by 2020 from 31.5 M today, however there aren't enought people to make this happen. This is real money. An Australian company is already doing it.
What a person could do is find three or for managers, go over there and hire local guys and train them. Get the Indian government to not only pay for your time building, but also teaching. A lot of the people that built the towers in Dubai where firms from Europee and elsewhere, that hired locally; and had managers/foremen from their companies on site. So it's not a new concept, but still a young one!

[scaredshirtless]

I've been wondering why we can't export NG. They say locally we need $7 to make non traditional drilling profitable. They just doubled the nearby Texas Eastern pipeline.

They're getting ready.

When the price goes up...

[inhouston]

NG - stocks - with dividends (I own most)
BBEP - KMP - MWE - OKS - WPZ - BWP - DPM - LINE - DEP - KGS - WES
maybe even the ETF UNG?

[inhouston]

ScaredShirtless - thats a nice asset you are sitting on (literally)
<<I'll just keep my 190 acres sitting on Marcellus Shale thank you!>>

Got your Christmas card at my office - sorry about Max
(going through the same thing with my mother)

Leaving for Snowland soon - will be up there a lot in the near future.


For those who don't have 190 acres of prime NG land - see some of my NG stock picks - do your due diligence - not a buy list.

You may also want to look at CANROYS also -
AAV - ERF - PGH - PWE - PVX
(disclosure - I own all of them)

[Aman A.K.A. Ahamburger]

Thanks for the picks houston!

S_S, IMO your right about the price factor. Now that they can get $10 mBtu+ in Asia, and soon GB; the scope of the situation will be chainging!

[bimetalaupt]

S.S.,
Yes.. New York Yellow Taxi have run on CNG for ten years I know of.. We can use it rather then oil for cars and trucks..

Have a great X-Mas,
Eric and Bruce

[bimetalaupt]

Dec 24, 2010 15:27:43 GMT -5 bimetalaupt said:

S.S.,
Yes.. New York Yellow Taxi have run on CNG for ten years I know of.. We can use it rather then oil for cars and trucks..

Have a great X-Mas,
Eric and Bruce

S.S.,
One more interesting outcome with very low NG prices.  Houston - Port Arthur  produce is because ng is used to fill the need for H2 and stream Oil from Canada can be made into  cheaper diesel  and shipped to Germany for less then the Brent from Norway.  What was waste when I was a little boy is the energy of the future.  Also one barrel of Canadian heavy will produce 1.3 barrels of diesel after cracking increases volume with the H2 from NG.

It is looking more like the Sprayberry investments we made in the late 1970's will pay off in the future. 

Are you still working silver?
BiMetalAuPt

[sunrnr]

The last I'd heard, it was illegal for the US to export energy. Efforts were being made to change this, but I don't know the current status.

That said, more than a few large scale LNG import terminals were on the drawing boards on both coasts and the Gulf, some of which have been held up due to environmental issues and local protests. These were started in an effort to ease the energy crunch coming for the US.

Realizing the marketing options opening up overseas, plans have now been drawn up to change the import LNG terminals to export terminals. This could be a boon for the US should they ever get built.

However, many other countries are now looking at unconventional gas sources, that if developed would create huge new reserves that would compete with US exports.

It will be interesting to see how this all plays out ....

[bimetalaupt]

Oct 11, 2013 22:12:44 GMT -5 sunrnr said:

The last I'd heard, it was illegal for the US to export energy. Efforts were being made to change this, but I don't know the current status.

That said, more than a few large scale LNG import terminals were on the drawing boards on both coasts and the Gulf, some of which have been held up due to environmental issues and local protests. These were started in an effort to ease the energy crunch coming for the US.

Realizing the marketing options opening up overseas, plans have now been drawn up to change the import LNG terminals to export terminals. This could be a boon for the US should they ever get built.

However, many other countries are now looking at unconventional gas sources, that if developed would create huge new reserves that would compete with US exports.

It will be interesting to see how this all plays out ....

Sun!
The law is about raw material not finished product.  We do in fact export Diesel made from Canadian Tar sand oil.   The energy is about 25%derived from NG.  World wide NG sells for about $10 mbtu vs $3.00 in the USA.  As Methane is produced in the core of earth from massive heat and Pressure we should have an unlimited supply of this clean energy. 

Israel has huge NG reserves off shore.  With GE use of NG to run power stations via turbines and boilers using the expelled heat we should have power for air transportation when we can produce low temperature high pressure tanks with lower weight. This would be great for IDF.   Also Shell has a Methane to diesel plant in Germany.  With all that capital in Israel they could go into H2 production or/and #2 diesel oil.   The north Atlantic has trillions of Cubic Feet of Frozen Methane hydrate that has collect for millennium from vents in the earth...like Bermuda Triangle.  

You a correct about the change in Flow from West Texas PIPELINES.   Well anyway you look at it,things are better now that we do not just burn it off at the well head like when I was a little boy.You could see flares in every direction at night from Odessa almost to El Paso.

One last thought, The cost to convert ice methane hydrate  to gas, dehydrate the gas and recover it and compress it has been too high to compete with current systems.  Yes it would be interesting to put the ice in a storage unit and power the ship with the gas bleed off.  Problem is the water freezes and will brake the pipes.  The gas will adsorb all energy and tempature drop just like well head wet gas during a blizzard. 

Thank-you,
BiMetalAuPt

[sunrnr]

Bi,

Right now the money is in the liquids coming out of the fracking zones along with the methane and ethane. If companies could flare the lighter components of natural gas many would, but due to emissions restrictions, they can't.

Many companies have been doing research on the process of converting natural gas to liquids (GTL). Plants are being designed and will come on-line within the next couple of years from the Gulf Coast to the upper-midwest and Northeast.

The natural gas would be the source for conversion to longer chain hydrocarbons for conversion to diesel, lubricants, plastics, etc.

It will be interesting as you say.

The methane hydrates are another story all together. Huge resources are available, but recovery, processing and ultimate impact on the environment from these activities still present some formidable issues to be dealt with.

[Aman A.K.A. Ahamburger]

Now, if we could only find a way to make it so that oil companies used things they produce, to make it so they have more of what they produce to sell.

[sunrnr]

From my post across the street ....

Here's an interesting article.....

The first small scale commercial gas-to-liquids (GTL) plant is being planned to be built near Ashtabula, Ohio, on Lake Erie, northeast of Cleveland.

"The Ashtabula GTL project will install a 2,800-b/d plant on 80 acres to convert natural gas from the Utica and Marcellus shales into solvents, lubricants, and waxes, as well as transportation fuels."


Pinto Energy, LLC - Houston, TX is planning on the plant coming on-line early in 2016. Could be a good investment to keep an eye on.

[Aman A.K.A. Ahamburger]

More ways to get rich off the natural gas oil patch. 

[Value Buy]

Oct 11, 2013 23:33:40 GMT -5 bimetalaupt said:

Oct 11, 2013 22:12:44 GMT -5 sunrnr said:

The last I'd heard, it was illegal for the US to export energy. Efforts were being made to change this, but I don't know the current status.

That said, more than a few large scale LNG import terminals were on the drawing boards on both coasts and the Gulf, some of which have been held up due to environmental issues and local protests. These were started in an effort to ease the energy crunch coming for the US.

Realizing the marketing options opening up overseas, plans have now been drawn up to change the import LNG terminals to export terminals. This could be a boon for the US should they ever get built.

However, many other countries are now looking at unconventional gas sources, that if developed would create huge new reserves that would compete with US exports.

It will be interesting to see how this all plays out ....

Sun!
The law is about raw material not finished product.  We do in fact export Diesel made from Canadian Tar sand oil.   The energy is about 25%derived from NG.  World wide NG sells for about $10 mbtu vs $3.00 in the USA.  As Methane is produced in the core of earth from massive heat and Pressure we should have an unlimited supply of this clean energy. 

Israel has huge NG reserves off shore.  With GE use of NG to run power stations via turbines and boilers using the expelled heat we should have power for air transportation when we can produce low temperature high pressure tanks with lower weight. This would be great for IDF.   Also Shell has a Methane to diesel plant in Germany.  With all that capital in Israel they could go into H2 production or/and #2 diesel oil.   The north Atlantic has trillions of Cubic Feet of Frozen Methane hydrate that has collect for millennium from vents in the earth...like Bermuda Triangle.  

You a correct about the change in Flow from West Texas PIPELINES.   Well anyway you look at it,things are better now that we do not just burn it off at the well head like when I was a little boy.You could see flares in every direction at night from Odessa almost to El Paso.

One last thought, The cost to convert ice methane hydrate  to gas, dehydrate the gas and recover it and compress it has been too high to compete with current systems.  Yes it would be interesting to put the ice in a storage unit and power the ship with the gas bleed off.  Problem is the water freezes and will brake the pipes.  The gas will adsorb all energy and tempature drop just like well head wet gas during a blizzard. 

Thank-you,
BiMetalAuPt

I was under the impression Japan was a big importer of Alaskan crude.
Are they only buying refined Alaskan product?

[bimetalaupt]

I was under the impression Japan was a big importer of Alaskan crude.
Are they only buying refined Alaskan product?

V.B.,
Alaskan oil to sell to Japan is an exception in the law...This part of the bill that built the pipeline!!   My understanding...as I recall!!!

BiMetalAuPt

[sunrnr]

Here's an interesting article about Israeli scientists turning water to oil?

On Wednesday, a team from Ben Gurion University unveiled a process to make an eco-friendly substance that will perform the same functions as oil.
The proto-fuel was created using a greenhouse gas and a chemical element that can be obtained from water.

[bimetalaupt]

Nov 16, 2013 9:32:57 GMT -5 sunrnr said:

Here's an interesting article about Israeli scientists turning water to oil?

On Wednesday, a team from Ben Gurion University unveiled a process to make an eco-friendly substance that will perform the same functions as oil.
The proto-fuel was created using a greenhouse gas and a chemical element that can be obtained from water.

Yes...Alcohol called n-butanol...used in WWI to make Cordite  ( smokeless gun powder)