Panjiva Blog — Panjiva
U.S. shale gas boom drives down prices

U.S. shale gas boom drives down prices

  • By admin
  • · June 18, 2012

America is in the middle of a natural gas boom, due in part to explosive growth in the shale gas industry. News reports say that the spike in natural gas production is quickly filling domestic reserves and disrupting international energy flows as other countries line up to import it. Amid all the frenzy, one thing is certain: the cost of the abundant U.S.-produced gas has been dropping.

Panjiva’s data shows that the unit cost of U.S.-exported Liquefied Natural Gas (LNG) has decreased by more than 50% since 2010. The average cost in Q1 of this year, $150 per cubic kilometer, was less than half the average cost in Q1 2010. See Panjiva’s trendspotting report here.

With shale gas production showing no signs of slowing, analysts predict that the cost of U.S.-exported gas should keep going south. But gas exports are heavily regulated, so Washington ultimately has to decide how much it allows to be exported. Meantime, importing countries and U.S. developers eagerly await the impact that the cheap U.S. gas will have on world energy markets. Track this trend in the months ahead with Panjiva’s Trendspotting.


Your email address will not be published. Required fields are marked *