Propane Exports Case Study

Natural gases are the most important source of energy in the modern world of technology and electricity production, which makes the skyrocketing gas production in the U.S. due to hydraulic fracturing incredibly valuable in terms of global trade and economy. The United States has always been reliant on the Middle East and other European and Asian countries for energy, but is very quickly becoming energy independent. "By 2020, the Energy Information Administration predicts that the USA will become a net exporter of natural gas", reaching energy independence from other countries and starting to export gas to provide revenue and pay off debts (Hassett and Mathur). Even

After decades of trial and error, in 2001 George Mitchell, Chairman and CEO of Mitchell Energy & Development Corp., cracked the code on what is today considered to be the new gold rush of the energy industry. By successfully commercializing hydraulic fracturing in the Barnett shale deposit, Mitchell ushered in a new opportunity for the United States to emerge as the largest natural gas producer in the world. Higher production of shale gas has reduced energy prices over the last five years and has increased U.S. energy self-sufficiency. Since it is viewed

Oil suppliers dig deep down to the roots to analyze and derive concrete solutions to carry on the rising market. The force of fracking in the United States is lifting the economy; the system has been a political game changer for the nation, creating job opportunities and investing money into the community. The United States is currently capable of competing with the global marketplaces at a high rate. This coordination leads to knowledge for on-shoring manufacturing, which eliminates the dependency on foreign oil. This significant groundwork is driving opportunities for innovators. The abundant supply of oil and the inexpensive cost leads to cheaper energy for consumers (Dews, 2015). Along with the low price for refineries,

Since 19th century fracking, coal, and other fossil fuels have supplied humanity with energy. With fracking In 2000, shale beds provided “just 1% of America’s natural gas, but now they provide 25%” (fracking good idea?)of America’s natural gas. Fracking has a big part in our world with supplying the world with energy. In just Pennsylvania, West Virginia, New York, and Texas the amount of natural gas in the ground is enough energy to power the country for 110 years.

Americans have had an insatiable appetite for the consumption of fossil fuels. Since the Industrial Revolution our preference had evolved from coal to oil, petroleum, and natural gas. Over the last century we’ve gone from drilling our own wells to building pipelines to importing fossil fuels from the Middle East, Venezuela, Canada and Russia, and today we are back producing our own fuel through a process called fracking. Fracking is the direct result of energy companies using cutting edge technologies to combine the processes of traditional hydraulic drilling and horizontal drilling, which allows us to effectively harvest natural gas here in the United States

In the State of Pennsylvania, a huge shale natural gas deposit has been found that could hold an even larger chance for growth in energy production in the United States. This natural gas deposit called the Marcellus shale deposit actually “stretches 1,000 miles from New York to Virginia and is 300 miles across at the widest point” (Grottenthaler 2011). Most of this formation of shale natural gas lies in the Pennsylvania portion of the shale natural gas deposit containing roughly “$500 billion in recoverable gas” (Finkel 2011). Not only is this great for the economy in Pennsylvania, it is also a great sign for the economy in the rest of the United States as well. According to many experts on the

These reserves are found within shale formations. Shale is a sedimentary rock that is very low in permeability and porousness making it difficult to tap the gas and oil held within the formations. Due to the combination of fracking and new drilling technology, the production of natural oil and gas has constantly increased every year since 2006. In the year 1990, America reached a height of natural gas and oil production, producing about 70.706 quadrillion BTU of energy but that number would begin to decrease steadily due to the scarcity of acquiring natural gas and oil. In 2006 the production of energy was 69.443 quadrillion BTU. Accordingly, in 2010 fracking became popular and the production level reached 74.812 quadrillion BTU of energy. By 2011, the production of energy increased to 78.091 quadrillion BTU. The domestic production of natural gas and oil had a large contribution towards this growth. With this increase in production, the United states became the second largest natural gas producer in 2011.The European Union which is the third highest producer of natural gas and oil produced only about a quarter of natural gas and oil compared to that produced in the United

United States oil production surged between 2008 and 2015 and few states have benefited as

The Marcellus Shale formation located in western Pennsylvania, New York, and Ohio is projected to supply an equivalent of 45 years of the United States current energy consumption. Worth an estimated five hundred billion, this can translate into cheaper and wider “variety of products such as plastic, agrochemicals, and pharmaceuticals.” It can also relate to an “increase [in] the supply of fertilizer, ensuring the availability of food and reducing…the conversion of forests to agricultural farms” (Sovacool 252). The fracking industry will only increase in size in future years, so much so that reclamation of shale gas is called the “eminent shale gas revolution. British Petroleum [BP], for instance, expects global shale gas

At a time where jobs are hard to find, fracking has been a saving grace for many. In 2012 alone the fracking industry supported 2.1 million jobs. (Economy) There is also a lot of potential for growth, according to Purdue University economist, Wallace Tyner. In the article “The Liberal War On American Energy Independence”, author Arthur Herman conveys that Tyner suggested that between 2008 and 2035 that fracking will add around $473 billion dollars each year to U.S. economy. (Herman) Fracking has already had an impact on foreign oil dependency, and it is definitely for the better. The New York Times reported “In 2011, the country imported just 45% of the liquid fuels it used, down from a record high of 60 percent in 2005.”(Krauss) This is a crowning achievement for many of the big supporters of fracking. Production could eventually reach to 10 million barrels a day, making us a real competitor of Saudi Arabia. (Krauss)

With having 400,000 natural gas wells across the United States this creates thousands of jobs for people. In 1980 fracking companies supported 267,000 employees according to the Federal Reserve Bank of St. Louis (Hassett, Kevin A.) In 2011 alone the United States produced 850,983 cubic feet of natural gas from shale gas wells (The Numbers.) Per thousand cubic feet of natural gas costs about 4.24 dollars, this comes out to a profit around 36 billion dollars (Hassett, Kevin A.) Not only does it have large profits but it has a huge direct effect on trade balance with the US and other countries. Between 2007 and 2011 natural gas imports decreased by 25 percent, with this four year decrease Energy Information Administration predicts that the USA will become a net exporter of natural gas by 2020 (Hassett, Kevin A.) Though “The word in the world of independents is that the shale plays are just giant Ponzi schemes and the economics just do not work,” says a spokesperson from IHS Drilling Data, an energy research company (The Numbers.) Shocking news that the economics just do not work with the gas companies many are finding out that it’s not as cheap to extract from the shale as the they intended it to be (Hunt, Spencer.) According to hundreds of industry emails and internal documents, and an

With the discovery of new technology that allows for us to drill deeper than ever before, natural gas wells are sprouting up all over the United States. Since 2011, U.S. oil production has increased by almost 3 million barrels a day, with a total production at 8.5 million barrels in July 2014. The growth in fracking efficiency has brought a lot of attention and criticism to the subject.

The shale gas underwent a complete turnaround in the early 21st Century. This was spearheaded by the United States

Extraction of shale oil and gas has turned the energy market on its head. It has led to the price of gas in North America to fall sharply, and in Europe prices have been greatly affected as well. The US are becoming less dependent on energy imports, and the country could possibly become a net exporter of energy in a few years. Such developments could change the geopolitical balance of the world's great powers.

The United States has proved based on previous statistics in the past that they are dependent on imports and exports to and from different counties. The US has always been dependent on getting gas and oil from other countries in the world however, construction started in Louisiana on an industrial facility that will be able to liquefy natural gas and enable the US to export it around the globe which would allow the U.S. to be a first time exporter of natural gas and oil. If we look back 5 or even 10 years ago the idea of the U.S. exporting oil and gas would be unimaginable and in some cases illegal because they U.S. was dealing with descending sale of domestically made supplies and at the same time were being very unknowingly generous to many foreign producers.