Re:Germany Is Burning Too Much Coal
by adventured on Tuesday November 14, 2017 @01:17PM
(#15697638)
I'd say it's more a matter of those amounts of gas will be shipped to Europe. Right now it doesn't appear anything can stop it (unless Russia wants to dramatically drop the average price of natural gas in Europe to stop it).
The US is about to become the world's energy kingpin, surpassing Saudi Arabia and Russia in both oil and gas; that vast supply will be pushed outward:
The average price of natural gas in Europe tends to be around $6, typically twice that of the US market. Once you add in the total cost of LNG (processing, transport, etc.), you get to a cost closer to $7.x to $8.x right now (that will come down with volume in the next few years, as the US is building several big new LNG terminals on the Atlantic and the Marcellus shale gas supply in the mid Atlantic is growing rapidly).
That's also before we get to technological innovation, which the US energy industry has always been renowned for, and has done wonders for the US shale industry the last decade (dramatically lowering costs, enabling the industry to survive the oil plunge and rapidly rebound, etc., entirely thwarting OPEC expectations of crushing the industry).
The US is about to become the world's energy kingpin, surpassing Saudi Arabia and Russia in both oil and gas; that vast supply will be pushed outward:
https://www.bloomberg.com/news/articles/2017-11-14/iea-sees-...
The average price of natural gas in Europe tends to be around $6, typically twice that of the US market. Once you add in the total cost of LNG (processing, transport, etc.), you get to a cost closer to $7.x to $8.x right now (that will come down with volume in the next few years, as the US is building several big new LNG terminals on the Atlantic and the Marcellus shale gas supply in the mid Atlantic is growing rapidly).
That's also before we get to technological innovation, which the US energy industry has always been renowned for, and has done wonders for the US shale industry the last decade (dramatically lowering costs, enabling the industry to survive the oil plunge and rapidly rebound, etc., entirely thwarting OPEC expectations of crushing the industry).