Guest “You don’t have any LNG to promise to anyone” by David Middleton
“Saturday’s Energy Absurdity of the Day”
Given that industry was already expanding capacity over the next few years, Biden simply promised to deliver the results of someone else’s work, kind of like his college term papers.
Since most LNG shipments are part of long-term contracts, the facilities are currently operating at full capacity and with the largest exporter being “sold out” into the 2040’s, there’s very little excess LNG to deliver to Europe…
Cheniere Energy Inc., the largest U.S. liquefied natural gas exporter, has sold out through the 2040s of the planned production from the $7 billion expansion of its Corpus Christi plant, the company’s CEO Jack Fusco said.
Bloomberg
The three Democrat hacks on the FERC have placed a new roadblock to future expansion, beyond what’s already in the works…
FERC issues ‘historic’ overhaul of pipeline approvals
By Miranda Willson | 02/18/2022 07:24 AM ESTThe Federal Energy Regulatory Commission issued sweeping new guidance yesterday for natural gas projects, including a first-ever climate change threshold, upending decades of precedent for how major energy infrastructure is approved.
FERC updated a 23-year-old policy for assessing proposed natural gas pipelines, adding new considerations for landowners, environmental justice communities and other factors. In a separate but related decision, the commission also laid out a framework for evaluating projects’ greenhouse gas emissions.
The commission’s three Democratic members approved both policies, while the two Republicans on the panel opposed them.
[…]
“We are going to, however, apply this policy in the interim, to allow the commission to process pipeline and LNG applications without delay,” Glick said.
Contrary to Democratic commissioners’ claims that it will provide greater certainty for the gas industry, the interim policy “creates more questions” for gas developers, said Amy Andryszak, president and CEO of the Interstate Natural Gas Association of America. For example, the statement does not explain the extent to which mitigation will be required for developers, she said.
[…]
E&E News
While they will “apply this policy in the interim, to allow the commission to process pipeline and LNG applications without delay,” future expansion of LNG capacity will be rather difficult, unless voters fire Democrats en masse in 2022 and 2024. The word interim does actually have a definition.
Note: The articles use the phrase “billion cubic meters,” (Bcm). This phrase if generally not used in the US oil & gas industry (the only one that matters). We use billion cubic feet (Bcf).
- 1 Bcm = 35.3 Bcf
- Total US export capacity is expected to reach 14 Bcf/d in 2022.
- The 50 Bcm/yr promised to Europe by 2030 = 1,765 Bcf/yr.
- 1,765 Bcf/yr = 4.8 Bcf/d.
- In 2021, US LNG companies exported an average of 2.5 Bcf/d to Europe.
- The odds are they’ll be shipping more than 5 Bcf/d to Europe in 2030.
Biden promised to deliver something he doesn’t control and was probably going to happen anyway. I’d call him a worthless sack of schist, but that would be unfair to fecal matter.
There is nothing odd about anything when you are senile.
This is what happens when you base your policy on beliefs.
Clinton also promised security for Ukraine in surrendering its nuclear weapons.
https://www.wsj.com/articles/how-bill-clinton-sealed-ukraines-fate-disarmament-nuclear-weapons-power-america-russia-kyiv-11648217959
And the assurances are still being made in other regions and other “deals.”
Blinken tries to calm allies ahead of possible Iran deal – ABC News (go.com)
Would it not be faster to approve the Israel pipe to Greece and Italy?
If we have so much LNG to sell to other countries, we should be outfitting our cars and trucks to run on LNG instead of electricity. We are turning into a banana republik every single day.
He promised the EU… which no longer includes UK.
so UK don’t get none…?
You get vague promises as shown in the links above.
The U.K. used very little gas from Russia anyway.
Biden could also end poverty by making it a hanging offence.
A perfect opportunity for Europe to put its money where its mouth is. Shut down SWIFT for all Russian banks and quit buying their oil and gas.
Use 100% electricity to replace the oil and gas. EV’s, electric heat, electric furnaces for steel and cement. CO2 pollution would plummet, reducing carbon taxes. This tax savings will fund any costs, reduce inflation and result in peace in our time.
Fredberple,
Indeed yeah!
And what will all the Eurocrats do after lunch, having achieved all that between 0830 and 1200?
Auto
Just asking.
Numeracy is not strong with these folks. And the other leaders accepted the pledge without checking. Maybe they should trust but verify.
I’d call him a worthless …
Harsh – but fair
The way to test whether or not Biden is serious about providing Europe with Petroleum look at what he is doing! It doesn’t add up. He would restart the Portland Pipeline. The Portland Pipeline was put into service during WWII to supply Canadian refineries near Montreal. The Germans were sinking ships all along the Atlantic coast and the shortcut to Montreal was strategic. As the US became more energy independent and Canada was building pipelines the Portland Pipeline went from 16+ ships a month to about one a month. With the Balkin Crude and Tar sands coming on line the intent was to open up European markets to Canadian cruse by reversing the flow of the pipeline. Everyone is screaming about the Keystone XL pipeline which is 1800 miles and could flow 680,000 BBls /day. It would take 2years to complete if the investors dared. the Portland Pipeline is mothballed and it can flow 600,000 bbls /day Portland is the closest US port to Europe. This is instant gratification. We don’t want that do we? Might alleviate a problem he caused. The Canadian energy is ready to flow. It needs the Market. This capacity is roughly 4% of the entire production of Russia and 2/3 of the refineries in Europe can handle the oil. Don’t look at what they say look at what they do. How about a reset?
Scratch pad estimation – in order to provide the same megajoule count as the 2021 Russian gas supply, the EU would need 65 of the new Q-class LNG tankers of which there are at present very few [ at almost twice the capacity of the present average LNG tanker ] running at monthly turnaround { return voyages } from the USA to Europe. In perfect conditions, the turnaround could be reduced to 25 days, but I haven’t heard that Murphy has exempt the USA and EU from his law. Russia and China have set 2025 as the time when the second Power-of-Siberia pipeline will be operating, Pakistan has signed up for its own line, and India is giving one close consideration. At that time, Russia will not need the EU market. Can the EU / USA combine build 65 large specialised LNG tankers plus the shoreside infrastructure by 2025? If not, then life in Europe will become rather tedious.
I can’t help but notice that our LNG export capacity went up by nearly 600% (6x) during the 4 years of the former administration (2bcf/day -> almost 12bcf/day)
If all of the promises Biden made in Europe represent additional capacity, then over the next 8 years we would add about half the amount (4.8bcf/day) that was added during the Trump years (nearly 10bcf/day). Surely we could do better, Biden!
According to GSA there is aboutv13 trillion cubic feet of gas in the mesazoic basin in the NE. These are the deposits being tapped NY the Canadians now on the other side of the Hague line. No mention of what the Canadians would absolutely love to supply from their politically frustrated reserves.