Last week, Gas South had the opportunity to host some of Georgia’s largest manufacturers at the Cherokee Town Club in Atlanta. We heard from industry experts, economists and lawyers regarding hot topics in the natural gas business.
We discussed the state of the natural gas market and listened to a presentation given by our very own Supply and Risk Management Manager, Michael Swartzell. We also explored the potential impact of exporting Liquid Natural Gas (LNG) and how it would affect the U.S. economy, a great discussion led by Roger Tutterow of Mercer University. The group also gained insight into the process of fracking through a session with Mr. Walt Standisky of Roper Pump Company. Lastly, David Wochner of Sutherland Asbill and Brennan gave an update on the regulatory environment for LNG and fracking.
The major takeaways from the sessions were:
- Natural gas is domestic, plentiful and changing the energy landscape of the United States
- The U.S. is the #1 producer of natural gas in the world
- Economists are predicting the shale gas boom to continue and that by 2040 annual natural gas production will rise by 50%
- Only two LNG export terminals are operating in the U.S.
- World demand and higher prices in other markets will continue to drive producers to push for more export terminals
- It is uncertain how many LNG export terminals will be approved by the Department of Energy
- Even with growing LNG exports, the increase in shale gas production should offset the offshore demand and keep prices stable
- The regulatory environment is not moving quickly and it is unlikely that any ruling will significantly impact prices
The following chart shows the huge increase in shale gas production expected by 2040.
Do you think exporting LNG is good for the US economy?