Europe is vulnerable and needs our natural gas; prices are absurdly high and going higher. Yet, everyone in the oil and gas industry is afraid to invest any money, even if they have financing available.
Who wants to start a 10- to 20-year natural gas project, whether it’s a gas field, pipeline, or LNG (liquified natural gas) terminal when the current administration is saying it will shut you down in 10 years? [bold, links added]
“You’ve got six years, eight years, no more than 10 years or so,” says climate envoy John Kerry. “No one should make it easy for the [natural] gas interests to be building out 30- or 40-year infrastructure.”
In the meantime, India has relaxed its environmental regulations and plans to double its use of coal. China has cut coal import tariffs to zero to ensure energy security and lower costs.
The United States has an abundance of coal and natural gas. Yet, natural gas is actually imported, at great cost, to Boston’s LNG facility from Russia, Canada, and the Caribbean due to the lack of pipeline capacity.
In late January, natural gas from the Algonquin City Gate Hub (near Boston) sold for over $20 per million BTUs and more than $23 on the futures market. Natural gas from nearby Pennsylvania cost just $4 in January.
Plenty of cheap natural gas is available in West Virginia and Pennsylvania, a few hundred miles away, and pipelines to supply New England are mostly built but have been shut down by environmental lawsuits and regulatory hurdles.
Because of the regional dearth of natural gas pipelines, and its high price, many in New England are burning oil for heat and electric power plants, and burned more coal in 2021 than in 2020.
One of the many ironies is that carbon dioxide emissions—the bogeyman of radical environmentalists—have decreased where there is sufficient natural gas to replace coal.
But any additional gas for New England, as noted, must come from foreign sources.
Why not ship gas from LNG facilities in Louisiana or Texas? Because the 100-year-old Jones Act requires that ships built, owned, and operated by U.S. citizens transport the gas between U.S. ports—and there simply aren’t any.
As a result, people in New England pay sky-high prices for natural gas and electricity.
In 2020, Connecticut had the dubious distinction of paying the highest price for electricity in the continental United States, and Massachusetts was not far behind. Pennsylvania and West Virginia paid about half their rate.
The $6.2 billion Mountain Valley Pipeline that was to transport natural gas to Virginia from West Virginia was 90 percent constructed and would have helped reduce Russian imports.
However, the U.S. Court of Appeals tossed the federal government’s approval of the project’s 3.5-mile route through the Jefferson National Forest. The ruling makes no sense. The pipeline is buried; people wouldn’t even know it was there.
Likewise, the Atlantic Coast Pipeline was canceled due to lawsuits over crossing the Appalachian Trail.
The PennEast natural gas pipeline from Pennsylvania to New Jersey was also canceled due to permitting problems related to wetlands in New Jersey.
Of course, TransCanada’s (TC Energy) Keystone XL pipeline project was killed by Joe Biden’s order on his first day in office.
Given the real threat of lawsuits, I doubt any major oil, gas, or coal projects will be initiated, regardless of rising prices. No one wants to invest in or begin a project that courts or regulators appear likely to stop.
Large projects are unlikely to go forward until the oil and gas companies get some sort of emergency declaration from the federal government to protect them from incessant lawsuits, speed up permitting, and allow projects to go to completion.
The environmental non-governmental organizations (NGOs) have full veto power on all projects now through the legal system. They clearly don’t care how much you pay for energy or where you are forced to buy it.
When it comes to relaxing regulations to allow the use of effective energy sources, India and China have the right idea.
Read more at AM Greatness
The Liberal Democrats are a UK political party and they aren’t in power. so what was your point? To prove you are semi-literate?
If you didn’t have taxes who would [pay for the subsidies the fossil fuel industries receive?
We dont need anymore stupid taxes on everything from Handguns to Hamburgers just to pay for some pet projects of Liberal Democrats we need a Break and we need the Democrats out of the Government
Once again Boffey shows us their total ignorance to the rest of us and depends upon the Daily Fake News from the M.S. Media
Rystad Energy is not “Daily Fake News from the M.S. Media” it is an energy consultancy firm that in this case simply provided an ana;yis of the data. An analysis that the energy sector will use in its investment decisions.
The facts I provided on gas were simply that, facts, Just because you don’t like facts there is no need to hurl around infantile insults, is there.
Gas Tankers Hauling U.S. Fuel Crowding Europe-Bound Sea Lanes
https://www.bloomberg.com/news/articles/2021-12-27/gas-tankers-hauling-u-s-fuel-crowding-europe-bound-sea-lanes#xj4y7vzkg
so your claims about gas are 100% lies, aren’t they and therefore the rest of your piece. Again.
“Why not ship gas from LNG facilities in Louisiana or Texas? Because the 100-year-old Jones Act requires that ships built, owned, and operated by U.S. citizens transport the gas between U.S. ports—and there simply aren’t any.” Whose fault is that? The USA demands protectionism, until it goes Pete Tong. We are seeing a lot of the USA’s maritime and associated industries and regs being shaken up as a consequence of global changes and Covid forcing the USA to accept reality.
Not true
Boston last bought gas produced in Russia in 2018.
That gas was not owned by Russia or on a Russian ship when it arrived in Biston.
But the gas originally came from Russia.
Boston does import gas, so that fact is a story worth telling
“Russia” is old news, and serves as disinformation
Haven’t you noticed, this site is nothing but disinformation. This entire piece was lies based on lies, which the authors must be well aware of, but their braying fanbois don’t care it feeds their need to feel superior, it is their bias confirmation, Dunning Kruger jerk circle.
“Yet, everyone in the oil and gas industry is afraid to invest any money, even if they have financing available.”
As usual this site is telling lies.
“Global oil and gas investments will expand by $26 billion this year as the industry continues its protracted recovery from the worst of the pandemic and the hurdles imposed by the Omicron variant. An analysis by Rystad Energy projects overall oil and gas investments will rise 4% to $628 billion this year from $602 billion in 2021.”
Why, oh why can’t you be honest?
Gas facts, not your lies.
“Until 2000, the United States exported relatively small volumes of natural gas and mostly by pipeline to Mexico and Canada. Total annual U.S. natural gas exports generally increased each year from 2000 through 2021 as increases in U.S. natural gas production contributed to lower natural gas prices and the competitiveness of U.S. natural gas in international markets. Expansion of the natural gas pipeline network, notably in the Permian basin area of Texas, enabled an increase in the capture of associated natural gas from oil wells and contributed to increases in U.S. natural gas exports. In 2021, the United States exported natural gas to 41 countries.
In 2021, total annual U.S. natural gas exports were 6.65 Tcf—the highest on record, and the United States has been an annual net exporter of natural gas since 2017.”
U.S. to be world’s biggest LNG exporter in 2022
https://www.reuters.com/business/energy/us-be-worlds-biggest-lng-exporter-2022-2021-12-21/
Next time the Eco-Freaks urge you to send them $500 to save the Snail Darter tell them to Go Pound Sand
Why is you believe lies without question and never, ever think for yourself?
“https://www.reuters.com/business/energy/us-be-worlds-biggest-lng-exporter-2022-2021-12-21/”