Full Title: Building an industry: Can the United States sustainably export LNG at competitive prices?
Author(s): Thomas Shattuck
Publisher(s): Deloitte Center for Energy Solutions
Publication Date: August 1, 2016
Full Text: Download Resource
Description (excerpt):
The US natural gas industry has dramatically changed over the last ten years, with prices halving as production grew by almost 50 percent.1 The key driver to the current energy renaissance is the largely unpredicted success of unconventional gas extraction, most notably in the Marcellus and Utica shales in Appalachia. At the same time, the global liquefied natural gas industry (LNG) has grown considerably as a result of new sources of both supply and demand. In February 2016, the first LNG cargo left the Sabine Pass liquefaction facility in Louisiana for Brazil, beginning the transformation of the United States from a net natural gas importer to an exporter. Several other liquefaction facilities are expected to come online within the next five years. In order for the export market to develop, it is paramount that producers grow production profitably at prices that are competitive in the global market.