There has been a buzz of excitement over LNG exports in recent days. In late April, the Director of the White House National Economic Council said the Administration would speed up approvals of LNG export projects. Then, the U.S. Department of Energy announced that it had approved a new project in Texas. Finally, on May 11, the Department of Commerce included LNG exports in a 100-day action plan for trade with China. The action plan simply noted that American regulators had approved many LNG-export projects and that China is free to procure natural gas from those projects, but that is a major change over Pres. Obama’s administration which was very cautious about LNG exports.
You may think that LNG exports would only help coastal producers, but that is becoming less and less true. Pipeline capacity in the Marcellus and Utica region has already greatly improved in recent years, and more projects are on the way. New pipelines that are nearing completion in Pennsylvania, West Virginia, and Ohio will greatly the increase capacity to move gas from those states to the Southeast, where most of the export capacity is expected to be. Those states are also getting new options to sell their gas further into the Midwest and up into New England.
Despite low prices in recent years, natural gas production in the Marcellus has continued to rise steadily from 2008 until today. In recent months, prices seem to have stabilized and the rig count is increasing. If you want to secure exploration and production rights in the region, contact Cimmaron Land to work with some of the best land brokers in the business.