As the price of oil goes up, shale oil drilling and production will increase in USA and as that happens gas production will also increase as gas production is co-produced from a substantial number of shale oil wells. If there was only a domestic market for USA gas that would drive down the price of USA domestic gas. That is why the push has been on for the last 5 or 6 years to export gas from USA to raise gas prices for producers. Some gas, and an increasing amount, can be piped directly to Mexico. The rest has to be liquefied and shipped overseas but most is now committed. That is the opportunity for LNG Ltd with two fully permitted LNG development projects - Magnolia in Louisiana at 8mtpa and Bear Head in Nova Scotias at 12 mtpa.
Go LNG!
LNG Price at posting:
71.5¢ Sentiment: Buy Disclosure: Held
