In the July 2012 issue of NG Market Notes, Directors Gordon Pickering and Richard Bass discuss the new paradigm of plentiful natural gas supply, and how LNG export opportunities are a positive development all around—they'll help balance supply and demand of natural gas not only in North America, but globally.
NOTE: The basis of this article was published in byline format on Forbes.com on June 12, 2012
The emergence of shale gas has caused natural gas prices in North America to drop to levels not seen in years. Shale gas resources elsewhere in the world, however, have not yet been developed to the same extent—creating a sustainable arbitrage opportunity. Given the potential profitability of liquefying surplus North American gas production and exporting it as Liquefied Natural Gas (LNG), a number of companies are now willing to develop capital-intensive natural gas export projects. Such exports will help to provide a better balance between supply and demand in the natural gas market, dampening price volatility and allowing industrial gas investments and natural gas feedstock purchases to be made with greater confidence in long-term natural gas pricing dynamics.
Click here to read the full article.