06/10/2013
America and the remarkable shift in the natural gas industry.... From import to export
The great development in the techniques of horizontal drilling and breaking up rocks to extract oil and gas enabled America to be a player in the world of energy, the importer of natural gas and oil is now on its way to the fossil energy self-sufficiency, but also exported to Europe and Asia. America rose of natural gas reserves with more than 60 percent in 10 years (see Figure 1), and a shale gas 38 percent of total natural gas production. Natural gas prices declined in America as a result of the abundance of reserves and production, this decline was accompanied by a rise in global prices, as prices of liquefied gas in 2012 the average $ 17 million alone for $ 4 in America, so that natural gas prices in the United States is at least in the industrialized world. For this, the eyes of America's gas production companies to export gas to abundance of Europe and East Asia, it is for these reasons that started prices go up in 2013, compared to last year.
The US Government is now 23 requests for companies planning to establish export liquefied gas projects for approval to export, total capacity of 300 billion cubic meters a year, the equivalent of 200 million tons a year of LNG, which if implemented would exceed all the production and export of liquefied gas. The US Government has allowed so far to four companies to export liquefied gas to Europe and East Asia, and often will start exporting in 2015, the table displays a list of the names of the companies and the amount allowed to be exported. The total value of liquefied gas permitted to 6.37 billion cubic feet per day, the United States produced about 66 billion cubic feet per day in 2012, the u.s. Department of energy has been allowed to export about 10 percent of daily u.s. production, with a view to improving prices and allow for exploration and extraction companies, expansion and profitability.
And observers expect that the rising price of natural gas in America to $ 6 per million BTU if exporting 16 billion cubic feet a day, but at the same time indicate the increasing opposition to the export of liquefied gas in America. The owners of the environment believe that shale gas production harms the environment, chemical industry owners believe it's better to keep the gas in America and that America should export of plastic products and methanol, fertilizers, etc., and this is what Mr liveras, President of Dow as Michal. Gas America will be in 2015, and best explains reality is what happened to platforms that are designed to import liquefied gas, as these platforms were modified from the platforms to import export platforms, no one expected this before the shale gas revolution. There is no doubt that the US will issue quantities of liquefied gas will lead to lower prices for liquefied petroleum gas, but the value of these quantities one perplexing questions, to understand the situation must return to the world market for LNG.
The world in 2012 to consume 240 million tons of liquefied gas, is expected to increase consumption in 2030 to 550 million tons, meaning that world consumption will double in 17 years. And if all projects submitted for approval in America, this would mean that around 200 million tones of liquefied natural gas only from America will come, and if it will definitely have a significant impact on the American economy, and on the trade of LNG thriving world. Australia is currently experiencing the largest expansion in liquefied petroleum gas industry, and surprisingly, the Australian projects to produce liquefied gas is costly, since the value of the investment to produce tons of liquefied gas in Australia to $ 2,500, while this cost reached $ 700 just to invest in the production of tons of liquefied gas in the United States, which has made America a magnet for investment.
For this, the most global companies or seriously considering investing in US shale gas, in terms of feedstock, each ton liquefied gas contains about 48 million BTU of natural gas and if you calculate the value of natural gas in America the price of four dollars per million BTU, this means that each ton of liquefied gas to the values of the price of 193 dollars, sold a ton in Korea and Japan at a price of $ 800. If, there is a big difference between us and the feedstock gas in Asia, making LNG export industry in America is brewing, and no one can stop them, they are coming to free economy, which is subject to supply and demand and profit the most.
There is currently much debate among American companies producing shale gas, which hopes for liquefying and exporting to Europe and Asia; and petrochemicals and fertilizers who want to keep the cheap gas started to petrochemical and fertilizers in America, strongly opposed the policy of export, because it would raise their prices. Comparison between the gas industries with methanol industry (as an example of the petrochemical industries) in America, this study was conducted. Each ton methanol needs 35 million BTU, and will profit by the price of natural gas is currently American (four dollars per million BTU) about $ 200, and Division 35, showing earnings per million BTU, ranging from five to six dollars.
As for LPG, ton contains 48 million units at a price of four dollars per unit, and this means that the price of natural gas component to ton liquefied gas about $ 200, and this become profitable a ton of liquefied gas in America (800-200-$ 600). Deducting the value of freight, insurance and operating costs, the earnings per ton at least about $ 500, or the profitability of the million unit used in the LPG industry 500/48 as ten dollars, Figure 2.
