Download now: Cannabis Cash

Do NOT Miss This Profit Windfall... Again

Written by Keith Kohl
Posted February 15, 2018 at 7:00PM

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.

You may not realize that the real U.S. LNG story started way back in August of 2010, when 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.

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.

And just like that, the U.S. LNG race was on...

Nearly 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.

As you can see below, U.S. LNG exports reached a new high recently:

cahrt1eac

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 playthe Marcellus.

I’ll tell you that the (arguably) single greatest energy boom the U.S. has ever witnessed has been in tight oil and gas production.

And for U.S. natural gas, it couldn’t have come at a more desperate time.

The Marcellus play in the Appalachia region was the solution:

marcellusoutput1

Within seven years, Pennsylvania’s marketed natural gas production exploded from virtually nothing to more than 15.6 billion cubic feet. To put a little perspective on that figure, that’s roughly 16% of our country’s total.

And while Texas still holds the crown for the largest natural gas-producing state, the two account for about 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) just inked a long-term LNG contract with Chinese state-owned China National Petroleum. The agreement is for 1.2 million tons of LNG from the Sabine Pass terminal per year.

Yet Cheniere isn’t the only player in the game.

Dominion Energy (NYSE: D) has already begun producing LNG from its liquefaction terminal in Lusby, MD. The goal is for the company to begin shipping LNG from Cove Point.

Commercial service is set to begin next month.

You can see where this is going, I hope?

But here’s the catch...

If you missed this story over the last few years, the catalysts are too perfect to pass up again.

More importantly, I plan to help you every step of the way this year, pinpointing the right LNG investments to target in 2018.

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.

Comments

Hydrogen Fuel Cells: The Downfall of Tesla?

Question of the Day

Which industry in California is responsible for the most energy usage?