U.S Jobs & LNG ExportsThe U.S. Energy Race for Continued Growth

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U.S. Jobs and LNG Exports

Expectations for America’s Oil and Gas Industry are fantastic!

The IEA reported the United States could become the world’s largest oil producer – surpassing Saudi Arabia – by 2020 and energy independent by 2035.

Read the report here

Oil & Gas Dominance

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U.S. Energy – Shale to LNG

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Rising Star in Energy

The U.S. “Shale Boom” has reshaped the American Energy Industry in the past few years.

Made possible by a combination of hydraulic fracturing and horizontal drilling, the vast amount of shale gas being produced has been essential to the development of the United States as a global energy competitor.

Economic & Job Growth

The Shale Boom has brought increased profits to areas like North Dakota and South Texas, drastically improving the regions’ economies. North Dakota is now the second largest producer of oil (after Texas) while South Texas has witnessed a changing dynamic and population growth due to large amounts of production activity.(ND Becomes Nation’s 2nd Leading Oil Producer, Associated Press, foxnews.com)(Oil Boom in Eagle Ford Shale Brings New Wealth to South Texas, Gilmer, Hernandez, and Phillips, dallasfed.org)

California has joined the Shale conversation; the state’s Monterey Shale could “represent the future of California’s oil industry…[and] turn California into the nation's top oil-producing state…” (California’s Shale Could Spark Next Big Oil Rush, Norimitsu Onishi, dispatch.com)

Shale Benefits

Other industries, like manufacturing, have felt the positive impact of shale production with an increase in business and need for improved infrastructure to meet industry demands. (Shale Gas will Fuel a U.S. Manufacturing Boom, Kevin Bullis, technologyreview.com)

The most recent industry to benefit from Shale has been America’s refining industry, which is currently “enjoying a remarkable revival…shares in companies such as Marathon Petroleum and Tesoro [were] the best-performing of any large energy companies worldwide last year.” (Refiners Reap Gains of U.S. Shale Oil Boom, Ed Crooks, ft.com)

What’s next? The industry’s Oilfield services are expected to “take off, having grown their businesses offshore and in strong international markets and anticipating that there will be at least some rebound in North America operations” (Big Oilfield-Services Companies are Poised for a Reawakening, Alison Sider, rigzone.com)

Shale Boom

U.S. Energy – Shale to LNG

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Maintaining Investment and Growth

• Several companies have plans to return manufacturing to American soil. Although many factors have contributed to a renewed shine in the Rust Belt, the region’s recent success is largely due to the extraction of oil and gas from shale plays (The Next Boom, Kopin Tan, Barrons.com).

• Nonetheless, the increase in production creates a situation where the U.S. market is becoming saturated with the natural resource. In fact, concerns about the affects of becoming “overextended” has led some to suggest slowing oil production (North Dakota Enjoys Oil Boom – But Grids for Slowdown, Russell Gold, online.wsj.com)

• To keep interest in America’s energy sector alive and to secure job growth/creation for thousands of people, LNG exports have become a crucial topic for America’s Energy Industry. WHY??

 

The Hurtle

U.S. Energy – Shale to LNG

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• LNG exports would send positive signals throughout the industry increasing demand in America’s energy resources and allowing for “increased domestic production of shale gas” (Blocking LNG Exports Helps a Few, Hurts Many, Dr. Michael Economides, Forbes.com)

• In general, LNG exports have become a topic of contention in the United States. However, “a report commissioned by the U.S. Energy Department found that for every market scenario examined the greater the volume of LNG exports, the greater the economic gain.” (Are There Really Benefits to U.S. LNG Exports?, Daniel J. Graeber, OilPrice.com)

• Instead of production and job growth declining when the market becomes “overstocked” with natural gas, turning excess gas into LNG exports will bring continued investment to the U.S. and allow domestic production to remain alive and strong.

Continue Production to Continue Growth

Senators have been debating over natural gas exports with questions raging over whether or not to impose federal limits in an attempt to constrain U.S. prices while allowing domestic manufacturing to grow.

Ron Wyden (D-Oregon) was quoted by My San Antonio as saying he wants to reach "a sweet spot where U.S. gas producers make enough money to continue producing and U.S. manufacturers have an affordable stable supply of natural gas." 

Jennifer A. Dlouhy, My San Antonio, "Senators Wade into Dispute Over LNG Exports", February 12, 2013

U.S. Energy – Shale to LNG

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• Already the production of Shale Gas has “attract[ed] good manufacturing jobs back to America, particularly in the chemical and steel industries. All of this adds up to a lot of jobs, growth, improved national security, and more revenues for government.” (U.S. Chamber: Liquefied Natural Gas (LNG) Exports Make Sense, U.S. Chamber of Commerce, uschamber.com)

• However, to ensure continued economic advancement, the market has to adjust to an abundance of the resource. Instead of leaving raw material to lay around and encourage slowed production and limited investment in manufacturing, LNG exports will encourage more domestic production and manufacturing investment: “expanding LNG leads to a greater economic expansion than limiting LNG exports.” (Blocking LNG Exports Helps Few, Hurts Many, Dr. Michael Economides, forbes.com)

Shale Production to LNG Exports: Jumping the Hurtle

• As has already been experienced by the Shale Boom, increases in energy production create energy jobs as well as other sector jobs to accommodate rapid economic growth and expansion. This growth could potentially slow if the natural resource is limited to the U.S. market inhibiting the rate of production.

• LNG exports offer continued investment in America’s energy industry, bringing with it continued job growth. According to the Center for Liquefied Natural Gas, “LNG exports represent an enormous opportunity not only to increase U.S. trade, but also to create thousands of new American jobs.” (Natural Gas Exports Create Jobs, CLNG, lngfacts.org)

What it Could Mean for The U.S.: Over the Hurtle

U.S. Energy – Shale to LNG

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A Look at U.S. LNG Projects:

BP – Freeport Terminal in Texas“BP Takes U.S. LNG Export Capacity at Freeport Terminal in Texas”, Bloomberg

Shell – Georgia“Shell Aims to Export LNG from Georgia”, Wall Street Journal Online

ExxonMobil – Alaska“LNG: A Pipeline to Somewhere”, Oil and Gas Journal

Pangea LNG Holdings, LLC – South Texas LNG Project“U.S. Department of Energy Grants Pangea LNG Project Permission to Export LNG” - PRNewsWire

U.S. Energy – Shale to LNG

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G.A.S. has several opportunities available – domestically and internationally – throughout the Oil and Gas Industry. Contact us today to learn about these

opportunities!!www.gasglobal.com

Stay connected to us:

IEA: U.S. to Become the World’s Largest Oil Producer, Institute for Energy Research, instituteforenergy.comND Becomes Nation’s 2nd Leading Oil Producer, Associated Press, foxnews.com

Oil Boom in Eagle Ford Shale Brings New Wealth to South Texas, Gilmer, Hernandez, and Phillips, dallasfed.orgCalifornia’s Shale Could Spark Next Big Oil Rush, Norimitsu Onishi, dispatch.com

Shale Gas will Fuel a U.S. Manufacturing Boom, Kevin Bullis, technologyreview.comRefiners Reap Gains of U.S. Shale Oil Boom, Ed Crooks, ft.com

Big Oilfield-Services Companies are Poised for a Reawakening, Alison Sider, rigzone.comThe Next Boom, Kopin Tan, Barrons.com

North Dakota Enjoys Oil Boom – But Grids for Slowdown, Russell Gold, online.wsj.comBlocking LNG Exports Helps a Few, Hurts Many, Dr. Michael Economides, Forbes.com

Are There Really Benefits to U.S. LNG Exports?, Daniel J. Graeber, OilPrice.comU.S. Chamber: Liquefied Natural Gas (LNG) Exports Make Sense, U.S. Chamber of Commerce, uschamber.com

Blocking LNG Exports Helps Few, Hurts Many, Dr. Michael Economides, forbes.comNatural Gas Exports Create Jobs, CLNG, lngfacts.org

Senators Wade into Dispute Over LNG Exports, Jennifer A. Dlouhy, MySanAntonio.com

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