Wednesday, December 26, 2012

Stunning Fact: Natural Gas Ranks Third In US Energy Exports & Petroleum Ranks First

The shale gas revolution and the backlash to it has made controversial every action and policy involving natural gas, no matter the facts.  The debate underway about exporting natural gas is one example.

Yet, a look at America's energy exports shows that natural gas exports have been taking place for many years but total much less than US petroleum and coal exports. Indeed, natural gas accounts for only 15% of US energy exports.

In fact, petroleum products account for 57% of US energy exports; coal 27%; and natural gas far behind in third place.   While the US exports little crude oil, the strength of US refineries makes the US a petroleum product powerhouse.

As for oil imports to the US that are declining due to growing domestic oil production and declining oil consumption, Canada, Mexico, Saudi Arabia, Venezuela, and Nigeria rank 1 through 5 in top sources.  No matter, whether the oil is imported from a friend or foe, the price is globally set.  Ouch!

Pricing of natural gas exports to Asia and Europe will reflect those regional market prices that currently are 3 to 4 times US gas prices.

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