S&P 500
7,401.00
+0.91%
Dow Jones
49,665.70
+0.19%
Nasdaq 100
29,241.00
+2.43%
Russell 2000
2,860.88
+0.82%
FTSE 100
10,263.70
+0.48%
Nikkei 225
63,767.70
+2.68%

Energy

Exxon Considering Natural Gas Exports (XOM, CHK, EOG, APA, ECA, LNG)

Photo of Paul Ausick
By Paul Ausick Published
Follow 24/7 Wall St. on Google
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Invalid Image
At the company’s shareholders meeting today, the CEO of Exxon Mobil Corp. (NYSE: XOM) said that Exxon is studying the possibility of exporting natural gas from the US Gulf Coast and Canada. Natural gas production in the US has exploded as hydraulic fracturing (fracking) technology has boosted US reserves to the point where there is sufficient natural gas to meet US demand and to allow exports, according to Exxon CEO Rex Tillerson.

Chesapeake Energy Corp. (NYSE: CHK) has also discussed natural gas exports as a means to boost natural gas prices, and EOG Resources Inc. (NYSE: EOG), Apache Corp. (NYSE: APA), and Encana Corp. (NYSE: ECA) have already announced a plan to begin shipping liquefied natural gas from Kitimat, British Columbia, in 2016. Cheniere Energy Inc. (AMEX: LNG) has already obtained the required permits to allow it to export liquefied natural gas from its Sabine Pass facility in the Gulf of Mexico.

Natural gas exports would certainly result in higher domesticd prices, but Tillerson emphasized job creation, higher tax revenues, and a better US balance of trade in his remarks. Liquefied natural gas fetches $15-$16/thousand cubic feet in Asia, compared with around $2.50/thousand cubic feet in the US.

Exxon is the largest US producer of natural gas following its 2010 acquisition of XTO Energy.

Paul Ausick

Photo of Paul Ausick
About the Author Paul Ausick →

Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.

He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.

Continue Reading

Paul Ausick |

Battle Lines Drawn Over Natural Gas Exports (DOW, DD, XOM, CHK, LNG)

Natural gas prices in the US rose to more than $4.80/thousand cubic feet (tcf) in June, and have trailed off…

Paul Ausick |

Exxon’s Natural Gas Confession Bad For All; Maybe An Earnings Warning? (XOM, CHK, BP, ECA, COP, DVN, EOG, APC, UPL, STR, UNG)

At a meeting in New York this morning, Exxon Mobil Corp. (NYSE: XOM) CEO Rex Tillerson said that his company…

Douglas A. McIntyre |

The US Might Begin Exporting Natural Gas (COP, MRO, LNG, CQP, APA, DVN, CHK, XTO, XOM)

For the past 40 years a natural gas liquefaction plant on Alaska’s Cook Inlet has been producing LNG and shipping…

Paul Ausick |

Natural Gas Exports on Front Burner (CHK, XOM, AA, DD, DOW)

Yesterday’s release of a new study by the US Energy Information Administration (EIA) on the impact of natural gas exports…

Paul Ausick |

What Boosted Chesapeake Stock Friday

When Chesapeake Energy reported second-quarter results Wednesday morning, the company's reported net loss was greeted with a boost to the…

Natural Gas Prices Rise on Smaller-Than-Expected Storage Increase
Paul Ausick |

Natural Gas Prices Rise on Smaller-Than-Expected Storage Increase

A smaller-than-expected addition to U.S. natural gas stockpiles boosted the commodity's price for August delivery up by about 1%.

Douglas A. McIntyre |

Liquefied Natural Gas from US Headed to China (CQP, LNG, APA)

Not more than two or three years ago, energy companies believed that the US would begin importing large quantities of…

Trey Thoelcke |

Stock Winners From Natural Gas Storage Depletion

The polar vortex has provided America with one of the coldest winters in the past 30 years. According to Jefferies…

Jon C. Ogg |

Exxon Outlines Expansion to 2015 (XOM, CVX, COP)

coutesy of Exxon Mobile Corp.At a presentation to analysts today, Exxon Mobil Corp. (NYSE: XOM) said it plans to invest…

Top Gaining Stocks

Akamai
AKAM • Vol: 21,556,944
Micron Technology
MU • Vol: 65,135,624
Intel
INTC • Vol: 227,504,426
Monster Beverage
MNST • Vol: 15,284,847
Dell Technologies
DELL • Vol: 12,167,525

Top Losing Stocks

Mettler Toledo International
MTD • Vol: 539,266
Motorola Solutions
MSI • Vol: 3,101,643
Expedia
EXPE • Vol: 4,189,786
Coterra Energy
CTRA • Vol: 73,319,495
Fidelity National Information Services
FIS • Vol: 11,468,820