March 25, 2014
The natural gas boom growing in surplus. The question on the table is to determine to export or not to export that is the question. The US is the position to export is news for the energy market. Growth in the “US energy boom may augur new export era” for new opportunities.
Now, the US energy industry is pushing for a new era of exports. Although energy companies are legally free to export natural gas, they must go through a lengthy review process for building the multibillion-dollar terminals that are required to turn it into a liquid so it can be transported on ships. Crude oil, meanwhile, is largely subject to an export ban enacted in the 1970s-era energy crisis, when long lines at gas stations and soaring prices led to political pressure to save domestic resources for American consumers.
“The oil and gas industry is pushing the Obama administration and Congress to legalise crude exports and speed up the process of licensing gas export terminals. Industry officials argue that the US is now in a position of economic strength and national security that will be further enhanced by energy exports. Foreign markets for US crude and natural gas will spur additional production, create thousands of new jobs, enable the US to counter hostile foreign energy powers and generate billions of dollars in wealth, according to the American Petroleum Institute. Already, the US is exporting 3 million barrels of gasoline per day, ” Gulf News.
“Some of these prohibitions or these policies are vestiges of the past,” API President Jack Gerard told reporters. “Our resource potential in this country is vast, it’s large. It’s unprecedented, even more so than any of us would have thought five or six years ago. So we need to rethink these policies, including the crude export policy.”
The importance of any innovation or boom is to have the thinking and resources in place to manage the rollout this includes policies. The length of time that it takes to move from one step or policy to the next the boom is either bursting or missed without the resources and intelligences to push it along.
The export of natural gas is an opportunity for the US to engage from a different vantage point. To innovate it takes a bureaucratic streamlining to support the boom while managing the processes tightly. This is counter intuitive where the tightness is at the start versus in the back end. The goal is to support the boom before the door starts to close.