Warren asks US gas producers questions about exports ahead of winter – News Couple

Warren asks US gas producers questions about exports ahead of winter

(Bloomberg) — US Senator Elizabeth Warren asked the chief executives of nearly a dozen of the nation’s top natural gas producers why so much heating fuel is being exported as winter approaches as Americans face rising utility bills.

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In a statement issued Tuesday, Warren accused ConocoPhillips and EQT Corp. and Exxon Mobil Corp. and eight other natural gas producers by raising prices, making record profits, and “rigging the system” by keeping production low and increasing exports, rather than ensuring there is enough domestic supply.

“The company’s greed is unforgivable, the results of a fraudulent system that enriches executives and investors in energy companies, and leaves American families struggling to pay the bills,” Warren said in letters to ConocoPhillips’s Ryan Lance and Occidental Petroleum Corporation. and other CEOs.

The global energy shortage sweeping across Europe and Asia is driving up demand for US LNG, driving up prices. Meanwhile, the shale oil industry’s restriction in spending on more gas production and the limited capacity of pipelines has raised fears of blackouts in some parts of the United States.

The US record price for power plant and heating fuel has nearly doubled this year. In Europe, prices have jumped to unprecedented levels.

More than a third of US natural gas production comes from the Appalachian Basin of Pennsylvania, Ohio and West Virginia, where political barriers have prevented the construction of new pipelines. More than a tenth comes from the Permian Basin in West Texas and New Mexico where natural gas is a by-product of oil production and is dependent on drilling activity.

Of the 97 billion cubic feet of gas produced in the continental United States on a daily basis, approximately 6 billion are exported via the pipeline to Mexico, while another 11 billion are exported from six LNG plants. Mexican exports are expected to remain flat, while demand for LNG next year is expected to rise above 12 billion cubic feet per day.

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