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Energy Independence: That's Just Part of It!
This is one of the most hotly debated issues of the century so far: Energy Independence.  Just four days ago Bloomberg claims that we are indeed just that: The U.S. Just Became a Net Oil Exporter for the First Time in 75 Years.  Others are stating that that just isn't true,....yet: Donald Trump wrongly says U.S. is a net energy exporter.  And while both sides are going round-and-round, there is one thing neither will debate.

Quote:The United States is projected to become a net energy exporter in most AEO2018 cases

EIA projects that the United States will become a net energy exporter in 2022 in the newly released Annual Energy Outlook 2018 (AEO2018) Reference case, primarily driven by changes in petroleum and natural gas markets. The transition from net energy importer to net energy exporter occurs even earlier in some sensitivity cases that modify assumptions about oil prices or resource extraction. Sensitivity cases with less energy production project that the United States will remain a net energy importer through 2050.

The transition of the United States to a net energy exporter is fastest in the High Oil Price case, where higher crude oil prices lead to more oil and natural gas production and transition the United States into a net exporter by 2020. In that case, higher crude oil prices also result in higher petroleum product prices and lower consumption of petroleum products, driving decreases in net petroleum imports.

In the High Oil and Gas Resource and Technology case, with more favorable assumptions for geology and technological developments, the United States becomes a net exporter in 2020, and net exports increase through the end of the projection period. In cases with relatively low oil prices or less favorable assumptions for geology and technological developments, U.S. net energy trade still decreases, but the United States remains a net energy importer through 2050.

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And this is not just one source stating this:

U.S. Energy Is Breaking All Kinds Of Records -- Are You Participating?


But here's THE KICKER, which will be sealing the deal.  And this is just one of perhaps other pronouncements that will be forthcoming under this administration.  

Quote:USGS Announces Largest Continuous Oil Assessment in Texas and New Mexico.  Estimates Include 46.3 Billion Barrels of Oil, 281 Trillion Cubic feet of Natural Gas, and 20 Billion Barrels of Natural Gas Liquids in Texas and New Mexico’s Wolfcamp Shale and Bone Spring Formation.

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WASHINGTON - Today, the U.S. Department of the Interior announced the Wolfcamp Shale and overlying Bone Spring Formation in the Delaware Basin portion of Texas and New Mexico’s Permian Basin province contain an estimated mean of 46.3 billion barrels of oil, 281 trillion cubic feet of natural gas, and 20 billion barrels of natural gas liquids, according to an assessment by the U.S. Geological Survey (USGS). This estimate is for continuous (unconventional) oil, and consists of undiscovered, technically recoverable resources.

"Christmas came a few weeks early this year," said U.S. Secretary of the Interior Ryan Zinke. "American strength flows from American energy, and as it turns out, we have a lot of American energy. Before this assessment came down, I was bullish on oil and gas production in the United States. Now, I know for a fact that American energy dominance is within our grasp as a nation."

“In the 1980’s, during my time in the petroleum industry, the Permian and similar mature basins were not considered viable for producing large new recoverable resources. Today, thanks to advances in technology, the Permian Basin continues to impress in terms of resource potential. The results of this most recent assessment and that of the Wolfcamp Formation in the Midland Basin in 2016 are our largest continuous oil and gas assessments ever released,” said Dr. Jim Reilly, USGS Director. “Knowing where these resources are located and how much exists is crucial to ensuring both our energy independence and energy dominance.”  
About Coronavirus - “Suddenly I begin to understand why Charlie gets so excited over taking a walk outside.”
Here's some other great news. S22

Quote:U.S. liquefied natural gas export capacity to more than double by the end of 2019

EIA projects that U.S. liquefied natural gas (LNG) export capacity will reach 8.9 billion cubic feet per day (Bcf/d) by the end of 2019, making it the third largest in the world behind Australia and Qatar. Currently, U.S. LNG export capacity stands at 3.6 Bcf/d, and it is expected to end the year at 4.9 Bcf/d as two new liquefaction units (called trains) become operational.

The United States began exporting LNG from the Lower 48 states in February 2016, when the Sabine Pass liquefaction terminal in Louisiana shipped its first cargo. Since then, Sabine Pass expanded from one to four operating liquefaction trains, and the Cove Point LNG export facility began operation in Maryland. Two more trains—Sabine Pass Train 5 and Corpus Christi LNG Train 1—began LNG production this year, several months ahead of schedule, and are expected to ship their first cargos within the next few weeks.

Two more LNG export facilities—Cameron LNG in Louisiana and Freeport LNG in Texas—are currently being commissioned. Commissioning of liquefaction facilities involves introducing natural gas feed into the train and ultimately producing LNG. For liquefaction terminals, which use refrigeration to cool natural gas into liquid form, commissioning also includes getting the equipment and refrigerants down to sufficiently cold temperatures. The first LNG production from these facilities is expected in the first half of 2019. The developers of these projects expect all three trains at Cameron LNG and two trains at Freeport LNG to be placed in service in 2019.

The Elba Island LNG facility near Savannah, Georgia, is also scheduled to become fully operational by the end of 2019. Elba Island LNG consists of 10 small modular liquefaction units with a combined capacity of 0.33 Bcf/d. Project developers expect LNG production from the first train to begin early next year and from the remaining nine trains to commence sequentially through the rest of 2019. The second train at Corpus Christi LNG is scheduled to be placed in service in the second quarter of 2019. The final two trains of the U.S. liquefaction projects currently under construction—Freeport Train 3 and Corpus Christi Train 3—are expected in service in the second quarters of 2020 and 2021, respectively.

Four additional export terminals—Magnolia LNG, Delfin LNG, Lake Charles, Golden Pass—and the sixth train at Sabine Pass have been approved by both the U.S. Federal Regulatory Commission and the U.S. Department of Energy, and they are expected to make final investment decisions in the coming months. These proposed projects represent a combined additional LNG export capacity of 7.6 Bcf/d.

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About Coronavirus - “Suddenly I begin to understand why Charlie gets so excited over taking a walk outside.”
This is really Great News for the future of Energy Independence in the US.  This has been a big bone of contention for years, but by the end of this year(2019) it is expected that the US will not become dependent on others for its energy.  


Historically, tensions in the Strait of Hormuz – like those currently between the U.S. and Iran – would portend serious price impacts for American consumers. But not anymore, thanks to the U.S. energy revolution. As it turns out, America’s strongest defense against crude oil supply disruptions is our homegrown energy offense.

Driven by growth in the Permian, Bakken and Eagle Ford shales, production of U.S. oil has significantly reduced our reliance on foreign suppliers. In 2018, U.S. net imports of petroleum accounted for about 11% of domestic consumption, the lowest levels in more than 60 years. America has surpassed Russia and Saudi Arabia as the world’s largest producer, and the U.S. is projected to continue driving supply growth to become a net exporter of crude oil and petroleum products by the end of this year.

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At the same time, American foreign policy is strengthened. Because of domestic output, the U.S. is less vulnerable to others’ attempts to leverage energy.
Former Secretary of State Condoleezza Rice recently noted:

Quote:“[I]f we had been sitting here ten or 15 years ago with that kind of tension in the Strait of Hormuz, we would have been seeing oil prices spike through the roof, but we’re seeing a structural change in the nature of oil markets largely because of the North American platform. … It really is a bit of a lesson, by the way, to the bad boys of the oil markets, that they can't play these games in quite the same way.”

Domestic abundance supports U.S. energy exports, which also bolster our country’s diplomatic goals. Earlier this year, Secretary of State Mike Pompeo said exports assist our allies and promote the principles of free enterprise, rule of law and regional stability. For America, natural gas and oil production helps advance self-sufficiency and prosperity at home, while countering rivals abroad. Pompeo at CERAWeek in March:

Quote:“It’s really – it’s very simple: Our plentiful oil supplies allow us to help our friends secure diversity for their energy resources. … There could not be more of a contrast about how America uses its energy resources than how the leaders of []Iran use theirs.”
With Iran disrupting supplies in the Middle East, American energy is increasingly a force for good in the global marketplace. Because energy security impacts national security, U.S. natural gas and oil production is a risk-mitigating influence worldwide.

Among political superpowers, America rises above the rest as a champion of market-driven access to reliable and affordable energy resources. As the engine behind this access, U.S. natural gas and oil helps promote stability and democratic values across the globe.
About Coronavirus - “Suddenly I begin to understand why Charlie gets so excited over taking a walk outside.”
And this is further Good News!  

U.S. LNG exports to Europe increase amid declining demand and spot LNG prices in Asia

There is an added Plus side to this, from the European standpoint.  Before, the Euros depended on the overwhelming majority of  their natural gas coming from Russia.   This could bring huge pressure is the Russians decided to do so.  Now that they are getting more from the US, as the US revs up its exports, they are less dependent on any one source.

This chart gives a pretty good summary on just how much the Euros have been growing the US marked share. And its amazing how much this had grown in just one year. S22

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About Coronavirus - “Suddenly I begin to understand why Charlie gets so excited over taking a walk outside.”

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