US to begin shale gas exports to EuropeNovember 9, 2011
Yadullah Hussain, writing for Canada’s Financial Post, states what we at EGP have been saying for years: The US is poised to experience a fossil energy boom that could reverse its status as a net importer and turn it into a major exporter of energy. Hussain reports that:
Britain’s BG Group has become the first company to export liquefied natural gas from the United States, inking a landmark US$8-billion deal with Cheniere Energy, shows how the American North Eastern shale gas revolution could not only allow the U.S. to meet much of its energy needs domestically, but also turn into a strong natural gas exporting powerhouse.
Europe will not be the only destination for gas from the Sabine Pass terminal. Expansion of the Panama Canal will open the Asian market up to American sourced natural gas as well.
We cannot repeat this often enough in these difficult economic times: There is a fortune beneath our feet. Technological advances and increasing prices for conventional fuel has made previously uneconomic resources economically sound, and the US has vast quantities of untapped fossil fuel resources that can revitalize our nation’s finances. Royalties and leases for sources on public land would flow into state and federal treasuries , as would increased taxes derived from both primary and secondary sources, and the sudden reversal of a balance of trade formula that has been running against for decades would revolutionize the US financial. There are certainly environmental costs that must be considered, but a serious negotiation between pro-extraction and pro-environmental forces can certainly find a way through this thicket to a bright, energy led American economic future.