LETTER: San Juan Basin can't rely on ...

LETTER: San Juan Basin can't rely on LNG as solution to low natural gas prices

Posted in the Blanco Forum

Robert Williams

Florence, AL

#1 Nov 10, 2013

Your editorial on exporting U.S. natural gas as (liquefied natural gas) fails to account for market reality worldwide. The United States has an over-supply of natural gas and consequently prices per thousand cubic feet have fallen to low ranges not seen in decades. Shale gas is now at 39 percent of total U.S. production. Low cost producers in the East have margins that will keep shale gas volumes at high levels.

Do LNG exports change this to the extent that New Mexico will benefit "immediately?"

The answer is not found in the Department of Energy long term authorizations or export permits and changing the status of potential importing countries. It is in the global marketplace for LNG. Because the United States has a natural gas surplus, it does not follow that American LNG will automatically discover a world ready to buy it. For more of the letter use this link--> http://www.daily-times.com/farmington-opinion...

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