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Monday, April 16, 2018

Good News, Bad News: U.S. Natural Gas Production Hits New Highs in 2017

From Forbes:
The good news is that the oil and gas industry will set a new record for natural gas production in 2018. 
The bad news is that the oil and gas industry will set a new record for natural gas production in 2018. 
Wait, what?  Yes, really. 
First, the good news:
  • When natural gas is abundant and cheap, utility bills are lower in most areas, with the notable exception right now of the New England area, where politically-motivated pipeline constraints have led the absurd outcome of residents of the states north of New York paying much higher prices than the rest of the country, and having to actually import LNG from Russia in order to meet the region's natural gas demand.
  • The EIA report is also good news for the state of Texas, where Saudi Aramco announced on Tuesday its plans to invest as much as $10 billion in new capital in its Beaumont-based Motiva refining and petrochemical operations to take advantage of low U.S. natural gas prices.
  • Obviously, the report is great news for the petrochemical industry as a whole, and for the myriad other industries that use natural gas as a feedstock.  The low natural gas prices have already resulted in a massive manufacturing boom in the U.S. over the last half-decade, and the prospect of ongoing record production levels promises to keep that boom going.
So, what's the bad news, you ask?  Here you go:
Read the bad news by clicking here.

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