Trump’s China Trip Could Be a Game Changer for Our Natural Gas Industry
Energy independence has always been one of the foremost goals of our country. Under the current administration, we are closer than we have ever been to attaining it. In fact, after assuming Office, Trump went a step ahead and declared that his aim was not merely ‘energy independence’, but ‘energy dominance’. His recent trip to China confirms that we are charting a new path to achieving that goal as well.
Why Trump’s China Trip Is Important
The very first sign that Trump was serious about his goals for the natural gas industry is the fact that two natural gas executives were part of his entourage in his trip to China. The President’s China visit was highly anticipated by oil and gas companies in the country because China, as the second largest economy and home to the world’s largest adult population, offers numerous business opportunities to our gas exporters.
The United States over the years has refined and advanced the technology for processing LNG (liquefied natural gas) and is now an exporter of the same. Industry estimates show that our capacity to process LPG is likely to increase seven times in the next couple of years, as five more export terminals are expected to open in 2019. So, we have the potential to become a major exporter of LPG and catering to the needs of a huge market like China could be extremely profitable for our gas companies.
This is why there was plenty of buzz in the natural gas industry before Trump’s trip to China.
What the Trip Accomplished
China Energy Investment Corporation Limited has stated that it will invest $83.7 billion for the purpose of shale gas development and chemical manufacturing in West Virginia. This is a huge investment and is likely to spur a great deal of economic activity in the region.
Secondly, three state-owned Chinese companies – China Petrochemical Corp, Bank of China, and China Investment Corporation – have entered into a contract with the Alaskan government to develop liquefied natural gas in the state. The deal is worth $43 billion and is expected to generate 12,000 new jobs for Americans.
Expected Long Term Developments
China is trying to shed its image of a coal-dependent country and move towards natural gas and alternative energy. So, its demand for LNG is expected to increase significantly in the coming years. More importantly, it has neither the natural resources nor the required technology for natural gas production. So, it has to rely on imports to meet its needs. This is a major opportunity for the US.
If all goes well, the United States will not only attain self-sufficiency in terms of domestic energy needs, but also emerge as a major exporter as well. Our exporters could cater to the needs of a number of countries that are currently dependent on Russia and the OPEC nations for oil and gas.
On the whole, the Trump doctrine of energy dominance is a much-needed one. It is the sort of course correction we needed after ten years of go-green initiatives that gutted our fossil fuel industry and halted our progress towards energy independence. Again, environmentalists do not want America to be strong and if they want America to be strong their version of obtaining that strength is based on Harry Potter ideas.
Wind and solar are too expensive and until that changes, fossil fuels are the center point. Good job Trump, America needs all the jobs it can get! It is awesome that America is finally being led by someone who gets it and does not have a brain infected by political correctness. Politically correctness is a disease that forces people to separate themselves from reality – just see liberal policies that are put forth and you will realize this is the case.
No discussions yet. Start a discussion below.