Will Exports Rescue US Shale Gas?

Will Exports Rescue US Shale Gas? 

By: Nicholas Newman 

 The US shale gas industry is in crisis, the sector is losing money hand over fist. Problems of oversupply, desperate financial troubles, poor productivity are making it increasingly difficult to turn a profit. Much of the sector is likely to be wiped off the map, what is left, will be taken over by investors with deep pockets and long term plans.

Despite this nightmare, the industry is pinning its hopes on gas exports. There are already applications to the US Department of Energy amounting to 27.58 BCF/D, which is more than the entire US shale gas output. If exports are permitted, then US low domestic gas prices would be forced up to reach world market levels. Certainly the profits are there when both European and Asian markets are prepared to pay around US$17 MCF (per 1000 cubic feet) for gas.

http://www.oxfordprospect.co.uk/Will-Exports-Rescue-US-shale-gas.html

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