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Permalink Reply by Jim Litwinowicz on December 25, 2015 at 1:49pm

The affects on nat gas will be small. It has been legal to export LNG and several terminals are already under construction with one at Sabine Pass, La. already exporting LNG and another to be online soon. Same with nat gas liquids which have been being exported for over a year. There are over 20 in various planning stages and if all get built, which is doubtful, nat gas prices could spike down the road.

If exporting oil amounts to any significant amounts, it will cause more drilling for oil which will increase some nat gas production from the associated gas that comes along with oil production. But the spread between WTI and Brent is so small that there probably won;t be a large amount of oil exported unless there is either a huge increase in global demand or some serious interruption in global production. With the way the ME and N Africa looks....the latter is a strong possibility.

One interesting tid bit I heard was that there may be some oil from Alaska exported to the Asian markets as the shipping fee from Alaska will less than shipping from the ME. Maye drilling in Alaska will pick up again.

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