Energy revolution is just beginning

Published 8:34 pm Monday, May 25, 2015

 

The energy revolution is set to begin its next phase, and it’s going to be glorious. The Obama administration gave its approval last week for another liquefied natural gas (LNG) production facility in Corpus Christi.

Increased LNG exports will help stabilize the U.S. market

“The practical benefits of LNG exports and unconventional gas development are indisputable,” Forbes magazine pointed out in February. “They will help produce liquidity in global LNG markets and provide other nations with additional natural gas resources, gradually opening foreign commodities markets. And, although LNG exports may cause marginal price increases to domestic natural gas consumers, they will ultimately bring net economic benefits to the U.S. domestic economy.”

According to the American Petroleum Institute, LNG exports could generate between 73,100 and 452,300 jobs between 2016 and 2035, when economic multiplier effects are figured in. The GDP would see a boost of between $15.6 billion and $73.6 billion annually between 2016 and 2035.

Here’s how unexpected the energy revolution, brought about by improvements in the hydraulic fracturing process, was — the Corpus facility was designed to be an import facility back in 2008. Now it’s being built to ship out the stuff.



There are also geopolitical benefits of exporting LNG.

“Russia’s recent hostility demonstrates America’s need to be able to use our natural gas reserves as a geopolitical tool to help all of our Eastern European allies,” Forbes notes. “Furthermore, many Asian countries simply desire American LNG supplies, because although they are working to diversify their energy sources and harness their own domestic resources, they remain dependent on gas imports, seek cleaner energy sources, and lack the technical capacity/physical infrastructure to tap into their own domestic sources.”

Corpus Christi is already seeing those benefits, as construction begins.

“We have initiated construction on our second LNG export facility, the Corpus Christi liquefaction project. Including our LNG export facility at Sabine Pass, we now have six trains under construction, with first LNG expected at Sabine Pass from Train 1 by year end,” said Charif Souki , chairman and CEO of Cheniere, the company opening the facility.

According to the Corpus ChristiCaller-Times, “The $11 billion project could produce 13.5 million tons of natural gas annually. The first train is slated to start operating in 2018, and the second train is expected follow six to nine months thereafter.”

And as Tyler Paper energy columnist Alex Mills notes, “Natural gas production in Texas and especially in South Texas in the Eagle Ford Shale give these facilities a competitive advantage because the gas reserves are so close to the export facilities.”

Of course, environmentalists will never love natural gas, because it’s not an emissions-free source of energy. At the same time, they often work to block the only true emissions-free source — nuclear power.

What’s left? Green energy solutions that aren’t yet capable of providing the sustained power the industrial world requires.

Unless and until such solutions are solutions indeed, natural gas is a proven, cleaner source of power.

So let the revolution continue. The benefits will be incredible.