Is the Bright Future of U.S. Natural Gas Under Threat?
Oil Price reported: This week’s World Gas Conference in Washington hosted a bunch of upbeat natural gas executives and analysts that expect an exceptionally bright future for the bridge fuel of the future, as natural gas is commonly called these days. With forecasts that U.S. production of natural gas could grow by 60 percent over the next 20 years amid booming demand as consumers seek to replace coal with cleaner alternatives, there is certainly reason to be optimistic. The United States is already the world’s largest producer of natural gas. It is also an emerging exporter of the commodity, with the potential to disrupt international gas markets as it gets increasingly competitive with other suppliers. Yet there is a shadow on the horizon. In fact, the shadow is much closer: the trade spat between Washington and Beijing. China is a natural priority for all gas and LNG exporters. It is set to become the world’s top gas importer next year, with demand for gas there expanding by 60 percent between 2017 and 2023, according to the International Energy Agency. For more on this story visit oilprice.com or click https://bit.ly/2lGqU19
Natural Gas Prices Make Impact Fee Projections Hazy for 2018
Post Gazette reported: Natural gas prices this year could make a $45 million difference in how much shale gas drilling companies have to pay in impact fees for 2018, according to new projections from Pennsylvania’s Independent Fiscal Office. If the average annual price of gas on the New York Mercantile Exchange drops below $3 per million British thermal units this year, the total collection is expected to sink to $190 million, down from the $209.6 million the fee raised for 2017. If the price stays above $3, as it did last year, the total collection is expected to rise to $235 million. Right now, gas prices are hovering just below the $3 threshold. The price of gas has averaged $2.90 on the exchange so far this year and futures prices for the rest of the year average $2.95, the office said. For more on this story visit post-gazette.com or click https://bit.ly/2MsN0PW