![]() ![]() The amount of gas flowing to export facilities - mostly along the Gulf Coast - has grown exponentially since the Obama administration approved the first liquefaction permit in the lower 48 states in 2012. The Trump administration also pursued the same strategy, with former Energy Secretary Rick Perry referring to the commodity as “freedom gas.” to offer Europe an economic alternative to Russian energy. The Biden administration has valued gas exports as a useful geopolitical tool allowing the U.S. consumers, but the sector otherwise receives bipartisan support. ![]() Elizabeth Warren and a handful of other Democrats as a threat to U.S. The exports have drawn criticism from Massachusetts Sen. Higher natural gas prices could bring even more scrutiny to the liquefied natural gas industry. storage levels, which have been reduced to below-average levels due to unexpected late winter demand, are replaced during the refill season.” “Prices are expected to return to lower levels as production climbs and U.S. “Both short-term and long-term projections from show domestic production is expected to continue to rise to support increased demand for LNG exports, as well as domestic demand,” the spokesperson said. “Estimated savings: $500 per year on average.”Ī Department of Energy spokesperson pointed to forecasts that natural gas production will eventually catch up with demand, though its statistical arm, the Energy Information Administration, said this week it expects the Louisiana benchmark price will average $7.83 per million BTU in the second quarter and rise to $8.59 for the second half of the year. #FRACKED GAS PRICE TRENDS WINDOWS#“Tax credits for folks to buy solar panels and heat pumps and more efficient windows and doors for their homes,” Biden said during the news conference. When asked about increasing energy costs at a White House news conference last week, Biden pointed to tax credits his administration was pushing for alternative energy and efficiency - but nothing that would ease the financial squeeze in the short term. But the government has few levers it can pull to reverse the rise in natural gas prices. The White House has tried counteract higher gasoline prices with a massive release of crude from the Strategic Petroleum Reserve. “But it’s a positive in that it will quicken the shift to renewables.” “If you’re the Biden administration, it’s a negative that rising natural gas prices will boost inflation,” Jones said. The price increase could be a boon and a curse for the Biden administration and its green energy aspirations, said Mark Jones, political science professor at Rice University in Houston who focuses on the politics of energy. That will do more than anything to help with energy prices.” “What we don’t have and what the Biden administration is not readily providing is the infrastructure to move it. “We have hundreds of years of supplies of gas,” Sullivan said. ![]() Dan Sullivan has blamed the increase on a lack of infrastructure able to match the increase in supply. Republicans so far haven’t devoted much messaging to the natural gas market, though Alaska Sen. export capacity is expected to grow further as companies continue to open plants along the Gulf Coast, ensuring that the surge in demand is enough to offset gains in production. ![]() Most of these exports go to European allies seeking to lessen their reliance on Russian natural gas in response to Moscow’s invasion of Ukraine. has become the world’s leading exporter of liquefied natural gas - meaning that American consumers are increasingly competing with buyers overseas for their own country’s gas production. But demand has outstripped that extra supply because a late-spring cold snap in some parts of the country and a heat wave in others has kept consumption high during the spring, when it usually declines. Unlike oil production, which fell off sharply when the pandemic kept people from driving, natural gas production reached its highest point ever last year and remains strong. Homeowners in some states dependent on gas have complained their winter heating costs nearly doubled from the previous year. While the price move may not be as immediately visible to the average consumer as the spike in gasoline, it will contribute to the inflation that has dogged Biden for months, mostly by raising costs for food, heating, plastics and utility bills. Prices are forecast to fall next year - if production can grow further. natural gas prices have more than doubled since the start of the year and are forecast to average over $8 per million British thermal units for the rest of 2022, well above the $2 to $4 range the fuel has typically traded inside for the past decade. ![]()
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