#natural-gas

The Absurdity of US Natural Gas Exports | Our Finite World
▻http://ourfiniteworld.com/2014/03/31/the-absurdity-of-us-natural-gas-exports

The Absurdity of US Natural Gas Exports
Posted on March 31, 2014 by Gail Tverberg

Quiz:

1. How much natural gas is the United States currently extracting?

(a) Barely enough to meet its own needs
(b) Enough to allow lots of exports
(c) Enough to allow a bit of exports
(d) The United States is a natural gas importer

Answer: (d) The United States is a natural gas importer, and has been for many years. The EIA is forecasting that by 2017, we will finally be able to meet our own natural gas needs.

http://gailtheactuary.files.wordpress.com/2014/03/us-natural-gas-forecast.png?w=640&h=385

In fact, this last year, with a cold winter, we have had a problem with excessively drawing down amounts in storage.

http://gailtheactuary.files.wordpress.com/2014/03/natural-gas-storage-march-27-2014.gif?w=640

There is even discussion that at the low level in storage and current rates of production, it may not be possible to fully replace the natural gas in storage before next fall.

2. How much natural gas is the United States talking about exporting?

(a) A tiny amount, less than 5% of what it is currently producing.
(b) About 20% of what it is currently producing.
(c) About 40% of what it is currently producing.
(d) Over 60% of what it is currently producing.

The correct answer is (d) Over 60% what it is currently producing. If we look at the applications for natural gas exports found on the Energy.Gov website, we find that applications for exports total 42 billion cubic feet a day, most of which has already been approved.* This compares to US 2013 natural gas production of 67 billion cubic feet a day. In fact, if companies applying for exports build the facilities in, say, 3 years, and little additional natural gas production is ramped up, we could be left with less than half of current natural gas production for our own use.

*This is my calculation of the sum, equal to 38.51 billion cubic feet a day for Free Trade Association applications (and combined applications), and 3.25 for Non-Free Trade applications.

3. How much are the United States’ own natural gas needs projected to grow by 2030?

a. No growth
b. 12%
c. 50%
d. 150%

If we believe the US Energy Information Administration, US natural gas needs are expected to grow by only 12% between 2013 and 2030 (answer (b)). By 2040, natural gas consumption is expected to be 23% higher than in 2013. This is a little surprising for several reasons. For one, we are talking about scaling back coal use for making electricity, and we use almost as much coal as natural gas. Natural gas is an alternative to coal for this purpose.

Furthermore, the EIA expects US oil production to start dropping by 2020 (Figure 3, below), so logically we might want to use natural gas as a transportation fuel too....

http://gailtheactuary.files.wordpress.com/2014/03/aeo-forecast-petroleum-production-and-imports-figure_12es-lg.png?w=640&h=480

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#US
#Natural-Gas
#Export
#energy

Congress, Europe resist U.S. sanctions on Russia over Ukraine - latimes.com
▻http://www.latimes.com/world/la-fg-us-ukraine-20140305,0,4752834.story#axzz2v5KlJs4N

▻http://www.trbimg.com/img-53168bff/turbine/la-afp-getty-ukraine-russia-politics-unrest-eu-aid-20140304/600

WASHINGTON — The Obama administration’s plans to impose punitive economic sanctions on Russia — potentially its strongest response to Moscow’s military intervention in Ukraine — already are facing resistance from administration allies in Congress and Europe.

Although administration officials say they are prepared to freeze assets of top Russian officials and possibly target state-run financial institutions, European allies — who are heavily dependent on Russian oil and gas supplies — signaled they aren’t ready to follow suit.

Top Democrats on Capitol Hill also are split, with some, including Senate Majority Leader Harry Reid of Nevada, arguing that the administration should wait for European support to give the sanctions more bite.

“To be effective, sanctions need to be multilateral, not unilateral,” Sen. Patrick J. Leahy (D-Vt.), who is chairman of the Senate Judiciary Committee, said Tuesday in a statement.

Other lawmakers, including House Speaker John A. Boehner (R-Ohio), said they supported sanctions and were ready to move quickly to adopt them.

President Obama sought to emphasize agreement among world leaders, saying during an appearance at a Washington public school that “together, the international community has condemned Russia’s violation of the territorial integrity and sovereignty of Ukraine.”

But key European governments, including those in Germany, Britain, France and Italy, indicated in emergency meetings in Brussels that, for now at least, they prefer other routes of persuasion.

The split underscores a broader divide between the United States and Europe, partners in the North Atlantic Treaty Organization alliance for 65 years, over how to deal with Moscow.

The Europeans, closer and more intertwined economically with Russia, don’t share the U.S. enthusiasm for sanctions as a diplomatic tool, and worry that curbing trade and business could hurt them without persuading Russian President Vladimir Putin to withdraw troops from Ukraine’s Crimean peninsula.

Russia is the European Union’s No. 3 trading partner, following only the United States and China. Trade totaled $462 billion in 2012, more than 10 times America’s $40 billion in trade with Russia, mostly between banks, energy companies and consumer products concerns.

Europe has little alternative to Russian energy.....

#World
#Congress
#Europe
#US
#Russia
#Ukraine
#Europeans
#energy
#fuel
#natural-gas
#Moscow
#Crimea