One of the byproducts of U.S. oil fracking is lots of extra natural gas. But without a way to get it to coastal shipping locations, much of it is simply burned off, wasting the gas and adding to global warming.
But if more pipelines could be built, the U.S. could become a much bigger force in the global natural gas market, Charif Souki, chairman and co-founder of Tellurian (TELL) - Get Tellurian Inc. Report, a liquified natural gas exportation company, told Jim Cramer on a recent episode of "Mad Money."
Souki told Cramer that 15% of the world uses 40% of the world's energy. That’s a sign the world’s demand for natural gas is bound to increase, as the rest of the world has a lot of catching up to do. The energy market is now global, he said, and the U.S. is now a full participant in that market when it comes to natural gas exportation.
There is still huge potential for the U.S., which has the world's largest natural gas reserves, to become an even bigger player in the market, Souki added. But the infrastructure is needed to move natural gas from where it is produced to the coasts, where it can be exported. The U.S. wouldn't even have to add many new drilling rigs, he said, only the pipelines to move what the U.S. already produces.
Such pipelines have encountered strong environmental resistance in the U.S., however.
Shares of Tellurian have soared more than 250% over the past year.
Souki and Martin Houston, together with the Tellurian team, own a significant portion of Tellurian, a public company headquartered in Houston, according to the company website. Souki set in motion the first liquefied natural gas (LNG) exports from the lower 48 states and founded Cheniere Energy. Martin Houston originated the concept of LNG destination flexibility, ensuring that LNG became a commodity, the company website states.