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The world turned upside down

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A lot of money spent, and then they found more gas here in teh US that most folks thought possible…

Wanna buy a brand new LNG plant? I know where there’s one for sale.

Shale Gas Blasts Open World Energy Market

From UK Times

A stretch of coastline on the Texas-Louisiana border provides a startling glimpse of Europe’s energy future. There, where Lake Sabine empties into the Gulf of Mexico, a giant port was completed last year. Built at a cost of $1.5 billion (£900m), it was meant to be a vital new part of America’s energy infrastructure.

Giant tankers from places such as Qatar and Sakhalin island in Russia’s far east were meant to dock there to inject their cargoes of liquefied natural gas (LNG) straight into the national pipeline network.

The Sabine Pass terminal was meant to take about one ship a day but since it opened for business 18 months ago only 10 ships have come in.

“This big shiny new terminal was one of the ones built as the answer to declining US gas production and increasing demand,” said Steve Johnson president of Waterborne Energy, a Texas energy consultancy. “Now it’s in mothballs.”

It is much the same story at America’s eight other LNG import terminals. They are running at only 10% of capacity.

“We have had so much new production come on stream that all of a sudden the role of these terminals has changed dramatically,” said Johnson. “They are getting the world’s leftovers.”

The reason is shale gas — a new and abundant source of natural gas, trapped in rock formations. Oil companies have known about it for decades but always dismissed it because it was too expensive and difficult to extract. In the past few years new technologies that pump water underground to fracture the rock and free the gas have been perfected. The breakthrough has opened a new frontier for the energy industry and turned long-held assumptions about the world’s dwindling supplies on their head.

Suddenly, America is awash with gas. Tony Hayward, chief executive of BP, said it had created a “a revolution in the gas fields of North America”. In a report this summer, the US potential gas committee increased its estimates of American reserves by a third. The Department of Energy now predicts that shale gas could meet half America’s demand within two decades and turn the country into a net exporter.

3 thoughts on “The world turned upside down”

  1. I’ve been watching the construction of the two facilities on the Sabine Neches ship channel for the last few years. They survived two hurricanes and the construction was a huge endeavor. I don’t know who invested in these dinosaurs, but the investment doesn’t look like it’s going to pay off.

  3. As a resident of PA sitting atop the Marcellus Shale deposit I would offer condolences except that I’m waiting for my mineral lease check to arrive.

    If the government would get the heck out of the way of the energy companies, we could be well on our way toward energy independence here in the US.

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