Premium Essay

The Exportation of U.S. Lng

In: Business and Management

Submitted By jon901
Words 6784
Pages 28
The Exportation of U.S. LNG:
An Abundance of Shale and Construction of New Export Terminals

Section 1: Introduction
The shale boom experienced by the United States since the mid-2000s ushered in unprecedented production and reserves estimates of oil and gas in the lower 48 states. This sustained supply and production has been a result of technological advancement, particularly improved techniques in hydraulic fracturing, has kept prices for natural gas extremely low while crude oil prices have fluctuated and changed over time. One reason for this is the different nature of exportation in the two hydrocarbons. As will be discussed below, the transportation and exporting of natural gas is much different than for crude oil. Natural gas must undergo a liquefaction process in order to travel by specialized cargo ship, the alternative to a pipeline, which adds substantial costs to the activity. There are currently no operational natural gas export terminals in the lower 48 states, but a few are under construction. The large sunk costs will be a large part of our consideration of the exportation of natural gas. The U.S. has traditionally been a net importer of gas, and considering the high upfront costs of building export terminals, the sale of American gas has been isolated almost exclusively to the domestic market. The only exception to this has been to export natural gas only where existing pipelines can carry it, which has limited foreign export to North America. Despite this historical trend, calls for the US to begin exporting natural gas have been growing louder as the potential to seek higher priced natural gas markets become more attractive.
This paper will explore liquid natural gas (LNG) export terminals and their prospects in the United States, analyze current legislation and regulation surrounding exportation, identify potential markets for...

Similar Documents

Premium Essay

The Oil Industry in an Unstable Economic and Political Environment

...STRATEGIC MANAGEMENT IN THE NIGERIAN OIL INDUSTRY WITHIN AN UNSTABLE ECONOMIC AND POLITICAL ENVIRONMENT AKINJIDE ODUNLAMI DECEMBER 31ST 2010 Table of Contents Introduction 3 The Oil Industry in Nigeria 3 Oil industry and the Nigerian Economy 5 Social and Environmental Impact 6 Strategy in the Nigerian Oil Industry 8 Managing External and Internal Forces 8 Assumptions 9 Key Strategic Activities 10 1. Timely Funding of the Joint Venture Cash Calls 10 2. Operational Efficiency 11 3. Cost Reduction and Leadership 11 4. Capacity Building 13 5. Facility Integrity and Innovation 14 6. Sustainable Development 14 7. Gas Utilisation 16 8. Security 16 Strategic Fit and Sustainability 17 Strategic planning and management system 17 Balanced Score Card 17 References 18 Introduction This paper considers Strategic management in the oil industry to deliver value and economic development in an economy very much dependent on crude oil revenue and with a fluctuating local currency rate against the US Dollar coupled with a volatile political climate with attendant security concerns. The industry, economy and political environment in focus here are those of Nigeria, a developing West African country. Within the context and space constraints of the Nigerian economic, political and social climate, an oil company must carefully define and manage its Corporate Strategy......

Words: 5530 - Pages: 23

Premium Essay

South China Seal Oil Dispute

...area covering hundreds of miles east and south of its southern province of Hainan. Other countries involved in the dispute include Taiwan, Vietnam, the Philippines, Malaysia, and Brunei, all part of the Association of Southeast Asian Nations (ASEAN) (See Appendix 1). The United States (U.S.) is an interested entity in the dispute based on the enormous number of commercial goods that pass through the sea each year (Dutton, 2014). This study will utilize the outcome of historical resolutions taken to resolve the dispute and analyze the conflict. Conducting a thorough analysis of this dispute is significant because it will set a good precedence for other existing global territorial disputes. In addition, finding a working solution for the dispute will benefit the ASEAN member countries through stability and other interested entities, such as the U.S., who rely on the South China Sea for trade. This paper will propose an International mediation alternative to the South China Sea oil dispute that will promote joint utilization of the natural resources within the territorial area. The Role of the United States The South China Sea is marked by several challenges affecting Asian countries; however, the U.S. is “deeply entwined in this complex web” (Schwartz, 2014). Commercial goods traveling through this sea, such as, electronics, crude oil, machinery and equipment, textiles, among others represent $5.3 trillion in total trade passing through the sea each...

Words: 6528 - Pages: 27

Premium Essay

Operations Management, Hrm

...American Business Law Journal Volume 45, Issue 2, 283–330, Summer 2008 The Impact of Compulsory Licensing on Foreign Direct Investment: A Collective Bargaining Approach Robert Birdn and Daniel R. Cahoynn I. INTRODUCTION The need to facilitate access to essential medicines for those with lifethreatening or fatal diseases like HIV, tuberculosis, and malaria has generated significant interest. Yet, an inevitable tension exists between the need for pharmaceutical companies to profit from their patented inventions and the desire to provide access for impoverished persons. Developing nations have attempted to resolve this tension through the issuance of patent compulsory licensesFauthorizations for government-approved generic copies1Fso that those in need of the n Assistant Professor of Business Law, School of Business, University of Connecticut. This article received the Holmes-Cardozo Award for Outstanding Submitted Conference Paper as well as the Ralph J. Bunche Best Paper Award at the Academy of Legal Studies in Business Annual Meeting, Indianapolis, IN, August 2007. Our thanks for comments and support go to Jayashree Watal, Peter Yu, Douglas Lippoldt, and the other participants at the University of Connecticut’s Center for International Business Education and Research Conference, ‘‘The Impact of Intellectual Property Rights on Innovation, Knowledge Diffusion, and Foreign Direct Investment in the Global Economy,’’ Storrs, CT, May 2007. Additional thanks to Anthony Kwasnica and...

Words: 20568 - Pages: 83

Free Essay


...Cybersecurity and U.S.-China Relations 网络安全与美中关系 Kenneth Lieberthal and Peter W. Singer 李侃如,彼得. W. 辛格 Cybersecurity and U.S.-China Relations 网络安全与美中关系 Kenneth Lieberthal and Peter W. Singer 李侃如,彼得. W. 辛格 February 2012 Authors’ Note F or the last year, the John L. Thornton China Center and the 21st Century Defense Initiative at Brookings have convened a working group on cybersecurity and U.S.-China relations, which the two authors organized and co-chaired. The research was motivated by our sense that: 1) the many policy issues involved in cybersecurity, especially in its impact on foreign relations, were already significant and would grow rapidly in importance in the coming years; 2) that such issues, if not well managed, could provide a major source of international friction, especially in U.S.-China relations; and 3) the newness of the field added a particularly complicating factor, making cybersecurity one of the most important but least understood emerging flashpoints in global security. A key aspect of the effort was to convene several dozen knowledgeable Americans from both the private and public sector, including the civilian government, military, corporate, think tank, and university communities. With such dynamic and fast-changing events playing out, the Brookings project not only sought to study the key issues in cybersecurity and how they impact U.S.-China relations, but also to break down some of the organizational and bureaucratic stovepipes that have......

Words: 17963 - Pages: 72

Free Essay

Personality Factor in the Conduct of Nigeria’s Diplomacy: a Comparative Study of the Olusegun Obasanjo and Musa Yar’adua Administrations, 1999-2000

...PERSONALITY FACTOR IN THE CONDUCT OF NIGERIA’S DIPLOMACY: A COMPARATIVE STUDY OF THE OLUSEGUN OBASANJO AND MUSA YAR’ADUA ADMINISTRATIONS, 1999-2000 Proposal submitted by Oluwatoyin Alabi to DR. David Aworawo, of the Post Graduate School, University of Lagos. In partial fulfillment of the Requirements for the award of the Degree: Masters of International Relations and Strategic Studies. (MISS) AUGUST 2012 PROPOSAL This work, adopting a multidisciplinary approach, seeks to analyse aspects of Nigeria’s diplomacy, specifically the effect of the leader’s personality on the conduct of Nigeria’s external relations. To effectively do this, the work shall comparatively assess Nigeria’s diplomacy under Presidents Obasanjo and Yar'Adua from 1999-2010. Seeking to see the effect their personality type had on the manner, trends and approach to Nigeria’s diplomacy during the period. On record President Obasanjo undertook a shuttle diplomatic effort across the globe especially between 1999 and 2002, this is said to have reintegrated Nigeria into the comity of Nations, where she was previously a pariah. How did his personality affect these efforts? Was his personality added value or reduced value? At the point of his death President Yar’Adua was ECOWAS chairman, previously in 2009 he attended the G20 meeting in Germany, visited President George Bush at the start of his term and other diplomatic engagements. How did his personality affect all these? On the whole how did the......

Words: 31209 - Pages: 125