A quick overview of LNG and is importance as a business driver in oil & gas. To see the current LNG plants under construction click here.
Transcript of Session –
Hey, miss do you like gas?
Hey, folks. Let’s learn something new about the oil and gas industry, shall we?
All right. Today, I’m in downtown Houston at the LNG Conference and you may ask what is LNG. LNG is Liquefied Natural Gas and it’s a huge driver that’s going on here in the US right now and all over the world.
So basically, all these fracking place are generating a lot of gas and gas is hard to transport. You may wonder why a barrel of crude goes for the same price in Tokyo, Japan as it does in New York and that’s because we have the ability to move it around the globe for the same price.
You can’t do that with gas. So what you need to do is [moosh] it down to liquid and so liquefied natural gas is a way to economically move that gas around. There’s a big price difference in the world, it’s going for about $2 per billion cubic foot in the US and about $25 per billion cubic foot in Asia Pacific. So you get these large CAPEX-funded plants being built all over North America to only get this gas out to the rest of the world and make a profit for these companies. So, it’s one of the main drivers that’s going on and most of the public doesn’t even understand that.
So, hope this helps. See you next time.