Team Biden is clueless - April 29
Posted: Fri Apr 29, 2022 9:18 am
Europe wants American natural gas. That could drive up U.S. prices. Washington Post.
Already, Russia’s invasion has moved America to send abroad every molecule of natural gas that can be shipped, accounting for about 20 percent of the U.S. supply. The industry plans to nearly double exports in the future. A broad coalition including the GOP’s most fervent drilling enthusiasts, Biden White House energy advisers and the U.S. Chamber of Commerce contends there will be plenty of gas to go around. A growth in shipments overseas, they say, would drive more gas production at home and help avoid the price shocks consumers are now confronting, with U.S. homeowners seeing their gas bills up more than 25 percent over last year.
Team Biden telling people that we have "plenty of gas to go around" is a bold face lie. Without a BIG increase in infrastructure and pipelines U.S. upstream companies have very little chance of increasing natural gas and NGL production this year. So, if LNG exports remain anywhere near capacity (12 to 13 Bcfpd) there is NO WAY we can refill ngas storage to get us through a cold winter. U.S. consumers are going to see BIG increases in utility bills this year and many areas could see natural gas shortages next winter.
All of our gassers (AR, CRK, CTRA, EQT, RRC and SBOW) are going to generate record profits and operating cash flow this year. Comstock Resources (CRK) has the best chance to increase production because the Haynesville Shale play has plenty of pipeline capacity. I recommend AR for exposure to high NGL prices.
Already, Russia’s invasion has moved America to send abroad every molecule of natural gas that can be shipped, accounting for about 20 percent of the U.S. supply. The industry plans to nearly double exports in the future. A broad coalition including the GOP’s most fervent drilling enthusiasts, Biden White House energy advisers and the U.S. Chamber of Commerce contends there will be plenty of gas to go around. A growth in shipments overseas, they say, would drive more gas production at home and help avoid the price shocks consumers are now confronting, with U.S. homeowners seeing their gas bills up more than 25 percent over last year.
Team Biden telling people that we have "plenty of gas to go around" is a bold face lie. Without a BIG increase in infrastructure and pipelines U.S. upstream companies have very little chance of increasing natural gas and NGL production this year. So, if LNG exports remain anywhere near capacity (12 to 13 Bcfpd) there is NO WAY we can refill ngas storage to get us through a cold winter. U.S. consumers are going to see BIG increases in utility bills this year and many areas could see natural gas shortages next winter.
All of our gassers (AR, CRK, CTRA, EQT, RRC and SBOW) are going to generate record profits and operating cash flow this year. Comstock Resources (CRK) has the best chance to increase production because the Haynesville Shale play has plenty of pipeline capacity. I recommend AR for exposure to high NGL prices.