U.S. Govt Could Delay Exxon’s Plans To Export Natural Gas

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The U.S. government could delay its decision on allowing energy companies to export natural gas from the country, according to reports. [1] Currently, companies are required to seek permits to export gas to countries that do not have free trade agreements with the U.S. Hit by low gas prices in the North American market, many private players have approached the Department of Energy for export permits. Natural gas prices in the U.S. have collapsed to their lowest levels in a decade on excess production from shale exploration and companies are looking to target international gas markets, where prices for the commodity are significantly higher. Recently Exxon Mobil (NYSE:XOM), the largest producer of natural gas in the U.S., also revealed plans to export gas from the U.S. Gulf Coast and Canada to target international markets.

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Gas exports

Exxon’s CEO Rex Tillerson revealed plans this week to export natural gas from the U.S. Gulf Coast and from Canada, in efforts to tap into higher prices in the international market. [1] Exxon is pushing for gas exports from the U.S. as a way to end the existing supply glut and as a source for jobs in the U.S. The company has also said that exports of natural gas could help the U.S. bridge its trade gap. American companies are targeting lucrative markets in Asia, in particular Japan, which is looking to diversify from nuclear power. Gas prices in international markets are much higher than in the U.S. as international prices are generally linked to crude benchmarks.

Despite the strong case to allow natural gas exports, the U.S. government is proceeding cautiously with the issue. [1] The topic is seen as being politically sensitive and no decision is expected before the November elections. Opponents of gas exports say that production should be retained for local markets to forward energy security. Some are also concerned that allowing exports could increase local price levels, hurting manufacturing that depends on natural gas. Allowing natural gas exports could help Exxon tap into markets with higher gas prices and ramp up its natural gas production in the U.S.

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Notes:
  1. U.S. Gas Exports Put on Back Burner, WSJ [] [] []
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Exxon Mobil Logo
  • commented 2 years ago
  • tags: CHK XOM BP CVX APC
  • How old are you Brett Kuntze? Eight?
    Exxon Mobil Logo
  • commented 2 years ago
  • tags: CHK XOM BP CVX APC
  • Brett, the gas will be either released into the atmosphere when oil wells are drilled or burned off as waste. It is better to burn it producing electricity than to just contaminate the atmosphere. This lpg can be used in trucks and cars as well as to heat homes and businesses.
    Exxon Mobil Logo
  • commented 2 years ago
  • tags: CHK XOM BP CVX APC
  • SOLAR IS COOL! AND CLEAN TOO.. i MEAN SOLAR KEEP EARTH COOL!! OIL OVERHEAT EARTH!! GET IT? SOLAR DO NOT CREATE HEAT .. SOLAR KEEP ENERGY COOL!
    Exxon Mobil Logo
  • commented 2 years ago
  • tags: CHK XOM BP CVX APC
  • We dont want to combust more fossil fuel no matter how plentiful it is... Global temperature is heating up from too many hot engines, stoves,/ovens, heaters that run on fossil fuels.. Too much heat causes ice to melt and flood the oceans and killling wildlife that need cooler clmate to thrive. I DONT CARE HOW PLENTIFUL IT IS NOW... We need solar energy which is not only clean but WAY COOLER THAN FOSSIL FUELS !! SOLAR ENERGY DONT CREATE HEAT!@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ SOLAR ENERGY USE NATURAL SUNLIGHT HEAT !!! HOW HARD IT IS FOR YOU TO UNDERSTAND!! wE CAN USE FOSSIL FUELS BUT WE ARE ALREADY PAST LIMITS!! THAT EARTH CAN WITHSTAND ! Earth is overheating now!! We will soon have 200 degree F deserts that nobody can survive!! Death Valley will hit record high like 140 degree F someday! and higher ! We willb e shocked !