With low natural gas prices expected to remain in the U.S., the issue of exporting domestic fossil fuel resources came to the fore in 2011. Cheniere Energy ( LNG) was awarded a permit by the federal government to begin building an LNG export terminal at Sabine Pass, La. Cheniere said the export facility may not be operational until 2017. The major oil companies are already building massive LNG facilities in Asia to meet the greatest demand for natural gas, and where prices are highest, in countries like Japan. ConocoPhillips has two LNG facilities in Australia, and also has a partnership in another Sabine Pass facility. Given ConocoPhillips' growing exposure to natural gas, the company said this idea is at least on its radar, even if it didn't have much to say about it. "I think it's something we are going to continue to study. It's really not just thinking about it from the perspective of Lower 48 natural gas production, but as we think about what long-term alternatives are for Canadian gas production, and importantly, as we think about what alternatives could be for development of the North Slope gas in Alaska. Those are all things that we'll be investigating whether liquefaction and export and natural gas makes sense going forward," Sheets said on the conference call.
Even as the U.S. land-drilling boom has crushed natural gas prices, it's led to liquid gold with all the E&P companies
The liquids-rich increases the land drillers are seeing in the U.S. is the reason why foreign buyers have been
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