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  1. Liquefied natural gas exports expected to drive growth in U.S. natural gas trade

    The United States is expected to become a net exporter of natural gas on an average annual basis by 2018, according to the recently released Annual Energy Outlook 2017 (AEO2017) Reference case. The transition to net exporter is driven by declining pipeline imports, growing pipeline exports, and increasing exports of liquefied natural gas (LNG). In most AEO2017 cases, the United States is also projected to become a net exporter of total energy in the 2020s in large part because of increasing natural gas exports. In 2016, the United States was a net importer of natural gas, with net imports of 0.9 trillion cubic feet (Tcf), or 2.6 billion cubic feet per day (Bcf/d). As several LNG export projects currently under construction are completed, LNG exports are expected to make up a growing share of natural gas exports and to surpass pipeline exports of natural gas by 2020. The Sabine Pass facility in Louisiana became the first operating LNG export facility in the Lower 48 states in 2016. By 2021, four LNG export facilities currently under construction are expected to be completed. Combined, these five plants are expected to have an operational export capacity of 9.2 billion cubic feet per day. After 2021, projected U.S. exports of LNG grow at a more modest rate as U.S. natural gas faces growing competition from other global LNG suppliers. U.S. exports of natural gas by pipeline to Mexico are also expected to increase. U.S. exports to Mexico have doubled since 2009 and are projected to continue rising through at least 2020 as pipeline projects currently under construction are completed. U.S. imports of natural gas, most of which come by pipeline from western Canada, are projected to continue declining. In addition to importing less natural gas from Canada, primarily from Alberta, increasing amounts of natural gas from the Marcellus and Utica basins in the Northeast and Midwest regions of the United States are expected to flow to eastern Canadian provinces. Despite these trends, the United States is expected to remain a net importer of natural gas by pipeline from Canada through 2040 in all but one case in the AEO2017 analysis. In the High Oil and Gas Resource and Technology case, higher natural gas production leads to greater exports of natural gas, and the United States becomes a net exporter of natural gas by pipeline to Canada by 2030. The growth of natural gas exports, especially from new LNG terminals, sustains continued growth in U.S. natural gas production. In the Reference case, natural gas production is projected to grow through 2020 at about the same rate (3.6% annual average) as it has since 2005, when production of natural gas from shale formations began to grow rapidly. After 2020, natural gas production grows at a lower rate (1.0% annual average) in the Reference case as net export growth moderates, energy efficiencies increase, and natural gas prices slowly rise. Natural gas production and trade vary with different assumptions for resources and technology, macroeconomic growth, and world oil prices. In the High Oil and Gas Resource and Technology case, larger natural gas resource estimates and improved drilling technology lead to higher domestic natural gas production, lower U.S. natural gas prices, and therefore, greater natural gas exports. Most of the increase in natural gas trade is from LNG exports, which grow to 8.4 Tcf (23 Bcf/d) in 2040. However, LNG exports are highest in a case with high world oil prices. In the High Oil Price case, when consumers move away from petroleum products when other energy sources become economically favorable, global LNG demand increases and U.S. LNG exports reach 9.2 Tcf, or 25 Bcf/d. Compared with other LNG suppliers, U.S. LNG has the advantage of domestic spot prices that are less sensitive to global oil prices. Conversely, in a scenario with more pessimistic assumptions for oil and gas resources and technology or a scenario with low world oil prices, LNG exports still increase, but remain below Reference case levels through 2040. More information about expectations for trade, production, and consumption of natural gas and other fuels is available in EIA’s A Annual Energy Outlook 2017 . Principal contributor: Katie Dyl

    Online Articles

    Online Articles

    Thu, 23 Feb 2017

  2. Oil and Gas: Lawmakers renew push for drilling in Alaska wildlife refuge

    Former U.S. Sen. Frank Murkowski in 2001 gave a speech urging colleagues to approve oil drilling in America's largest wildlife refuge. The Alaska Republican held up a blank sheet of paper to illustrate his point.

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    Fri, 24 Feb 2017

  3. Oil and Gas: North Dakota pipeline protest spurs South Dakota legislation

    Gov. Dennis Daugaard's office is pursuing legislation to make it clear that the governor's emergency response powers apply to destructive protests, create new trespassing penalties and make it a crime to obstruct highways based on lessons North Dakota learned from large demonstrations over the ...

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    Fri, 17 Feb 2017

  4. Natural Gas Pipeline: Natural gas leaks from pipeline in Alaska's Cook Inlet

    Natural gas for at least 10 days has leaked from an underwater natural gas pipeline in Alaska's Cook Inlet and floating ice has prevented divers from reaching the site.

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    Sat, 18 Feb 2017

  1. Oil and Gas: Nigeria: Up to $100 billion lost from oil militant attacks

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    Thu, 16 Feb 2017

  2. Oil and Gas: Giessel flags concerns with House oil tax, credit bill

    An Alaska senator has concerns with a House bill she says constitutes a major rewrite of the state's oil tax policy.

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    Wed, 15 Feb 2017

  3. Argentina seeking increased natural gas production from shale resources to reduce imports

    Despite its estimated 802 trillion cubic feet (Tcf) of unproved, technically recoverable shale gas resources, Argentina’s dry natural gas production declined each year from 2006 to 2014, and the country has shifted from a net exporter of natural gas to a net importer.

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    Sat, 11 Feb 2017

  4. Oil and Gas: $2.8B deal latest land acquisition in energy-rich Permian

    An Austin-based driller said this week that it's buying about 71,000 acres of land in the energy-rich Permian Basin for $2.8 billion, becoming the latest energy company to make a major investment in the region.

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    Fri, 10 Feb 2017

  5. Oil and Gas: BP earnings disappoint as it cuts costs, investment

    Oil producer BP's earnings rose less than expected in the fourth quarter, as it sought to adapt to low energy prices with cost cuts, asset sales and a pullback in investment plans.

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    Wed, 8 Feb 2017

  6. Gas Prices: Motorists continue to see lower gas prices in New Jersey

    Motorists continue to see lower prices at the pumps in New Jersey.

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    Tue, 7 Feb 2017

  7. Oil and Gas: Ohio drillers say 6 shale counties saw $43M tax bump

    Oil-and-gas drillers in Ohio have paid $43 million in property taxes to local governments and schools in six shale counties since 2011, according to a report released Thursday.

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    Sat, 11 Feb 2017

  8. Tight oil expected to make up most of U.S. oil production increase through 2040

    U.S. production of tight oil has increased significantly since 2010, driven by technological improvements that have reduced drilling costs and improved drilling efficiency in major shale plays such as the Bakken, Eagle Ford, and the Permian Basin.

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    Online Articles

    Tue, 14 Feb 2017

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