According to reports from the United States, the Department of Energy has approved a proposal that will see a company in Texas export liquefied natural gas to other countries. This approval was given to the Freeport LNG Expansion L.P. They now have the go ahead to export at least 1.4 billion cubic feet of this type of natural gas every day. This gives the company a chance to take full advantage of the huge boom in natural gas production in the United States thanks to shale extractions.
Right now, this agreement allows Freeport LNG the right to ship this natural gas to other countries that do not currently have free trade agreements with the United States. Usually the lack of free trade agreements with certain countries is there to keep public interest in mind.
This is sure to open the door for more companies to ask the government for the same kind of agreement. In fact, energy companies around the United States have been asking for federal permits to export natural gas to other countries. There has been such a huge demand for these permits thanks to the shale natural gas boom in the United States. Companies now see this as a chance to make a huge profit off other countries that are in the middle of a power crunch.
This huge influx of natural gas from the United States does not look like it will be ending any time soon. This is all thanks to a huge increase in natural gas from a process called hydraulic fracturing. This is a technique that involves drilling a hole and blasting water down it to break rocks. These rocks then release the natural gas trapped inside.
Although this method is making the United States a lot of money, it is still a very controversial procedure. Some environmentalists are worried that hydraulic fracturing will only lead to earthquakes and the contamination of groundwater. Despite these fears, there has been no evidence that supports these claims.
Either way, hydraulic fracturing has lowered the price of natural gas in the United States. It is so low, in fact, that the price of energy has been on the decline. This is very different than other places in the world like the UK, where energy prices have been on the rise. The UK will likely start importing extra natural gas from the United States in order to help keep its energy prices stable.