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Do NOT Miss This Profit Windfall... Again

Written by Keith Kohl
Posted February 16, 2018

Back in August of 2010, a strange, bulky package arrived on the desk of John Anderson of the Office of Fossil Energy.

The first line of the cover letter said it all:

Enclosed for the filing on behalf of Sabine Pass Liquefaction, LLC (“Sabine Pass”), please find an original and fifteen (15) copies of Sabine Pass’s application for long-term, multi-contract authorization to engage in exports of up to 16 million metric tons per annum (“mtps”) of liquefied natural gas (“LNG”) for a 30-year period.

It took only a month to approve the application, and it put the U.S. on a path to become a global energy powerhouse.

All that was needed was a little time, some patience, and a vast amount of natural gas available for export.

This is it, dear reader. The culmination of more than half a decade’s worth of progress. If you haven’t paid attention to the U.S. liquefied natural gas (LNG) story yet, please take the time to learn the backstory of one of the greatest energy booms in U.S. history.

Remember that back in 2010, the U.S. natural gas industry was in a much different state than it is today.

As John Anderson was busy poring over the details of the Sabine Pass application, our domestic natural gas production was around 72 billion cubic feet per day.

I’ll note right now that at that time, Pennsylvania’s natural gas production was trivial.

Oh, how things have changed, my friends... but we’ll get to that part of the story in a second.

Because in the span of less than a decade, the U.S. LNG race was on...

Almost six full years passed before the first LNG shipment sailed out of Cheniere’s Sabine Pass LNG project.

The first tanker headed toward Guanabara Bay, Brazil, with 160,000 cubic meters of LNG.

Yet it wasn’t until the latter part of 2016 that things really started to heat up.

And within the few years, U.S. LNG exports have absolutely exploded higher:

All I can tell you is: Get ready for more!

Clearly, the smart money had both the time and patience to let this investment gem develop.

As companies like Cheniere progressed, so did investor interest.

Again, all that was lacking in 2010 was a significant source of natural gas.

At the time, my readers and I knew that our domestic output was about to rise considerably.

And it’s all thanks to just one single, solitary shale play: the Marcellus.

Yesterday, we talked about the tight oil boom that has pushed U.S. crude production to new record highs. Well, the exact same thing occurred for our natural gas industry.

For the United States, this new supply couldn’t have come at a more desperate time.

Just think, we were a huge LNG importer just eleven years ago, and the way things were looking, the U.S. was going to be shackled to foreign natural gas for decades to come.

Then a miracle in the Appalachia region happened.

Over the last decade, Pennsylvania’s marketed natural gas production exploded from virtually nothing to more than 6.2 trillion cubic feet of natural gas in 2018. To put a little perspective on that figure, that’s nearly one-fifth of our country’s total.

And while Texas still holds the crown for the largest natural gas-producing state, the two account for well over 40% of the United States’ total marketed gas production.

Yet the Marcellus is responsible for virtually ALL of the growth since 2010.

You see, it’s Marcellus drillers like Range Resources (NYSE: RRC) that have allowed Cheniere to tap into overseas LNG markets.

In fact, Cheniere (NYSE: LNG) has been inking deal after deal, which has pushed U.S. LNG exports to new records.

And this boom is far from over.

In the coming days and weeks, our editors will help you target the right LNG investments that are poised to make investors a profit windfall as our U.S. LNG shipments spread across the globe.

Mark my words now: The time is ripe for U.S. LNG.

Until next time,

Keith Kohl Signature

Keith Kohl

follow basic@KeithKohl1 on Twitter

A true insider in the energy markets, Keith is one of few financial reporters to have visited the Alberta oil sands. His research has helped thousands of investors capitalize from the rapidly changing face of energy. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital as well as Investment Director of Angel Publishing's Energy Investor. For years, Keith has been providing in-depth coverage of the Bakken, the Haynesville Shale, and the Marcellus natural gas formations — all ahead of the mainstream media. For more on Keith, go to his editor's page.

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