Natural gas production in the U.S is setting new records annually. Times of surging prices because of shortages are a thing of the past and talk now is about how much of the natural resource should be exported.
Just a couple of years ago, exporting would have been unthinkable as demand far exceed supply, but today the exporting of liquefied natural gas is thought of as a means for help the country’s trade lessen the influence that other producers like Iran and Russia now have.
The White House is currently reviewing 20 applications for gas terminals used for exporting. If all 20 applicants were approved, then nearly 41% of all of the production of natural gas in the U.S. would be available to be exported, said a report from the Department of Energy.
Natural gas production has seen an increase of over 28% over the past 10 years and this year will have an average of more than 69.9 billion cubic feet a day, said the Department of Energy late last week.
However, not everyone is pleased about the possible exporting of natural gas. Dow Chemical Co., one of the largest users of natural gas in the U.S., said that if too much of the natural resource begins to be exported, then the price of the gas domestically could increase and that would wipe out the advantage that U.S. companies have against their international competition.
This year will mark the sixth consecutive record of annual production for natural gas in the U.S. and Dow said there is enough natural gas to be exported but if too much is exported, the volatility of prices could return.