With America's abundant supply of natural gas selling at close to historic-low levels, it seems natural that the next step would be to export it, and that's exactly what's starting to happen. A Wall Street Journal article today features one natural and growing market for natural gas, Japan, which has almost doubled its imports of natural gas since 1995, and by 12% in the last year. Following last year's earthquake and tsunami, Japan has closed 51 of its 54 nuclear and electric utilities have switched to natural gas.
And we can expect increased demand for natural gas from other countries in Asia and Europe, as some countries like Germany are moving away from nuclear power.
"The growing demand for natural gas around the globe coincides with a transformation of the U.S. market for the fuel thanks to the unlocking of gas in long-untapped shale formations. Officials in Washington expect the U.S. to turn into a net gas exporter over the next few years.
Exporters can take advantage of a gaping price difference. In the U.S. natural gas goes for about $2.50 per million British thermal units. The price in Japan for the same quantity is about $16."
MP: Drill, drill, drill = cheap natural gas = exports, exports, exports
HT: Bob Wright