Drill Here, Drill Now, Sell Over There

[boutons_deux]

Energy independence? just another Repug fraud

Mexico may feed off Texas pipelines


Mexico may someday realize its potential as a natural gas superpower; but in the lengthy meantime, the country's gnawing energy craving may feed off Texas pipelines.

Mexico energy planners are pressing ahead with an $8 billion expansion of the country's 5,500-mile natural gas pipeline system, focusing on central and northern industrial cities. And for the foreseeable future, they intend to fuel that network with U.S. natural gas, including from South Texas and Eagle Ford Shale fields.

Mexican officials will award contracts to U.S. and Mexican companies in October for construction of $3 billion worth of new pipelines from just below the Rio Grande deep into industrialized central Mexico and still more in Mexico's northwest.

Kinder Morgan already has proposed building an extension from its pipelines near Tucson to the Arizona border town of Sasabe, which will connect to Mexico's planned 600-mile duct running to the Pacific port of Mazatlan.

The company said the pipeline initially would export 160 million cubic feet of gas a day to Mexico. The U.S. side of the project awaits regulatory approval.

http://www.mysanantonio.com/business/article/Mexico-may-feed-off-Texas-pipelines-3802075.php#ixzz24CSH1KcE

LNG terminals in few years will accelerate export of US gas.

US consumers will pay the world price as soon as the gascos gear up to export gas.

[coyotes_geek]

Boo domestic manufacturing and increasing exports!

[TeyshaBlue]

Boo domestic manufacturing and increasing exports!

Pretty sure we covered this already.

http://www.spurstalk.com/forums/showthread.php?t=202397

Normalizing Nat Gas prices is a good thing.

[CosmicCowboy]

Again...

$2 gas is unsustainable. They can't even afford to produce and transport it at that price and are capping wells.

[Das Texan]

Exactly. Its economically unsustainable with gas prices where they are at. The issue is with the large caps on exporting it.

We yammer on about energy independence, but then bitch and moan about the processes and then do nothing to really utilize that huge amounts of natural gas existing here now.

This makes more than too much sense, so thats why it wont happen. The pipelines are already there and to connect the US ones to the Mexico ones wouldnt be a huge undertaking, especially with so much of the land not being populated.

[LnGrrrR]

Sweet, another target for druglords. :lol

[boutons_deux]

"utilize that huge amounts of natural gas"

utilize to reduce US dependence on foreign sources, and reduce the price of energy?

or utilize to enrich the gas/oil companies and their investors?

The main Repug "populist" argument about DHDN was to reduce domestic prices of transport and heating fuel.

That was false then, and now we see US gas and XL oil being exported, it's inarguably false now.

and yes, the drug gangs are stealing $Bs from MX oil pipelines. Not sure gas will be so easy to steal, transport.

[TeyshaBlue]

There's a job component to normalizing gas prices that you continue to ignore.

[mouse]

This wouldn't be an issue if everyone did like me and rode a bike to work.

[TeyshaBlue]

Sorry. I can afford a car.:lol

[boutons_deux]

There's a job component to normalizing gas prices that you continue to ignore.

TB :lol

Normalzing US NB prices to world prices means raising the US domestic price to world prices

"At $2.50 per million BTUs, the price of natural gas is the equivalent of around $15 per barrel for oil."

http://www.technologyreview.com/review/428900/king-natural-gas/

So we can expect the domestic price of NG to go back up to $10-$13 when the US companies are able to export at those and higher prices.

[TeyshaBlue]

Exactly, boutons. I knew precisely what I was saying re: normalizing US pricing.
Your continuing ignorance of how the oil and gas industry functions continues to be spotlighted.

I see you continue to ignore the job component. http://homerecording.com/bbs/images/smilies/facepalm.gif

[Halberto]

lol boutons

do yourself a favor and stop pretending to know anything about O&G

[boutons_deux]

So we can expect the domestic price of NG to go back up to $10-$13 when the US companies are able to export at those and higher prices?

[Das Texan]

nobody is saying anything about $10-13 gas prices.


Natural Gas worth $2 is not economical. Natural Gas probably needs to be around $4 for it to really be feasible and in realistic terms somewhere in the $5 range to a little higher or lower for there to be profits for all and to entice additional capital expenditures, et al.

[boutons_deux]

I'm asking, nobody's answering.

Natural gas prices in Europe

Prices of natural gas for end-consumers vary greatly throughout Europe.[16] One of the main objectives of the projected single EU energy market, is a common pricing structure for gas products. Europe's main natural gas supplier is Russia. Since the major pipelines pass through Ukraine there is an ever arising dispute on the supply and transition prices between Ukraine and Russia.

During the negotiations in 2008 Ukraine proposed that the price of natural gas for Ukraine should increase by $21.5 to $201 per 1,000 cubic meters, and the transit fee by $0.3 to $2 per 1,000 cubic meters pumped 100 kilometres (62 mi). Gazprom proposed that Naftohaz should buy its natural gas at $250 per 1,000 cubic meters starting from 2009.[17] Prime Minister of Russia Vladimir Putin said that the $250 per 1000 cubic meters price was a "humanitarian gesture" to Ukraine considering that Russia buys gas from Central Asia for $340 and that the European price level is $500 per 1000 cubic meters. Later, Naftohaz said it was ready to pay $235.[18] Negotiations between Gazprom and Naftohaz were interrupted on 31 December 2008.[19] While Gazprom claimed that Naftohaz would not negotiate, Ukraine said that the negotiations were interrupted at Gazprom's initiative.[20][21]

[edit]Natural gas prices in South America

In South America, the second largest supplier of natural gas is Bolivia. The price which Bolivia is paid for its natural gas is roughly US$ 3.25 to Brazil and $US 3.18 to Argentina.[22] Other sources state that Brazil pays between US$ 3.15/MMBtu and US$ 3.60/MMBtu (not including US$ 1.50/MMBtu in Petrobras extraction and transportation costs).[23] The price of gas in the US as a whole is between US$ 5.85/MMBtu (May 21, 2006), US$ 7.90/MMBtu (April 2006)[24] & US$6.46/MMBtu (June 2006).[25] Though several years ago the price of natural gas spiked at $14 in California[26] due to lack of pipeline capacity to and within California, and also due to electricity outages.[27] While according to Le Monde, Brazil and Argentina pay US$2 per thousand cubic meter of gas[26], which costs between $2.21 to $2.28[28] in California according to Reuters.

http://en.wikipedia.org/wiki/Natural_gas_prices#Natural_gas_prices_in_South_Ame rica

[TeyshaBlue]

You do realize it used to be in the $10 to $13 range here in the US right?

Of course not. It's unlikely that gas prices will spike for US consumption. We already have more than we can use. Selling the surplus <> to upward pricing pressure domestically.

[boutons_deux]

You do realize it used to be in the $10 to $13 range here in the US right?

Of course not. It's unlikely that gas prices will spike for US consumption. We already have more than we can use. Selling the surplus <> to upward pricing pressure domestically.

I found that historical price and that's why I posted it.

We'll see if "surplus" exports don't crank up domestic prices.

[TeyshaBlue]

"I'm asking, nobody's answering."

lol

Domestic prices will rise. How much? Difficult to say. They do need to be in the $5 ballpark for sustainable production. Right now, demand isn't there to support pricing beyond the $2 bucks and change.

[Th'Pusher]

http://www.bizjournals.com/sanantonio/print-edition/2012/08/17/eagle-ford-boom-is-driving-force.html?page=all


Moving to crude

Stung by record-low natural gas prices, Chesapeake has been jettisoning its gas-field properties to offset its $14.3 billion debt load and fund a shift into more-profitable oil production. The company is the second-largest U.S. producer of natural gas.
During its second-quarter earnings call last week, Chesapeake officials said they expect to reduce 2013 gas production capacity by 12 percent while boosting oil production in the Eagle Ford and other areas.

So far, that effort appears to be bearing fruit.
During the second quarter, Chesapeake’s net oil production in the Eagle Ford averaged 36,300 barrels of oil equivalent per day, a 745 percent increase over the second quarter of 2011. It also brought 121 wells online during the quarter.

[Wild Cobra]

Again...

$2 gas is unsustainable. They can't even afford to produce and transport it at that price and are capping wells.
Maybe they are going to raise corn ethanol subsidies and make everyone use E85.

[mercos]

"I'm asking, nobody's answering."

lol

Domestic prices will rise. How much? Difficult to say. They do need to be in the $5 ballpark for sustainable production. Right now, demand isn't there to support pricing beyond the $2 bucks and change.

Sadly, we know where this will ultimately end up, and that is with natural gas prices rising exponentially like oil prices. Not saying this situation is avoidable, but it is the sad truth.

[TeyshaBlue]

Sadly, we know where this will ultimately end up, and that is with natural gas prices rising exponentially like oil prices. Not saying this situation is avoidable, but it is the sad truth.

Exponentially? Really? What's the exponent?

[The Reckoning]

pretty sure boutons is a closet isolationist.

with nafta, we've been flooding mexico's markets with goods for years. why not oil?

plus we have other options if all else fails.

http://i49.tinypic.com/dvpt2u.jpg

[mercos]

Exponentially? Really? What's the exponent?

Two, maybe three. :p:

[Drachen]

Exponentially? Really? What's the exponent?

x^0???

[boutons_deux]

pretty sure boutons is a closet isolationist.

with nafta, we've been flooding mexico's markets with goods for years. why not oil?

plus we have other options if all else fails.

http://i49.tinypic.com/dvpt2u.jpg

US dumping GMO/chemically laden corn on MX destroyed a lot subsistence corn farmers. The desperate farmers headed to Yanqui Land as illegals.