For natural gas: The July outlook continues to forecast record production for U.S. dry natural gas in 2018 and 2019. Assuming the forecast holds, we will see production top 81 billion cubic feet per day in 2018, and another increase that will push production up to roughly 84 billion cubic feet in 2019. Growth in production enables EIA’s forecast of LNG and pipeline exports from the United States to expand. Net natural gas pipeline imports from Canada continue to decrease in EIA’s July outlook. New infrastructure and increased exports from the Appalachia basin to the U.S. Midwest and Canada are behind much of the decrease.
Speaking of natural gas exports, the CME group announced that CME Group and Cheniere Energy Inc., a pioneer in the liquefaction and export of U.S. liquefied natural gas (LNG), reached an agreement through which the CME Group will develop an LNG futures contract with physical delivery to Cheniere's Sabine Pass terminal on the U.S. Gulf Coast.
"In recent years, the shale revolution has unlocked abundant supplies of natural gas here in the U.S., creating new risks and opportunities for producers, processors, consumers and traders," said Peter Keavy, CME Group Global Head of Energy. "Through its Sabine Pass liquefaction facility, Cheniere is delivering Henry Hub-indexed natural gas to the world in the form of LNG. This agreement with Cheniere is significant because it will be the foundation for developing a new LNG risk management tool for producers, consumers and traders around the globe, while further cementing the role of Henry Hub Natural Gas futures as the global gas pricing benchmark."
Cheniere's Sabine Pass LNG terminal first started exports in February 2016, and currently operates four trains capable of producing 18 million metric tons of LNG per year. A fifth train is under construction and a sixth is fully permitted and shovel-ready, representing up to 27 million metric tons per year of LNG capacity at the site. Cheniere is also constructing a separate LNG export facility outside of Corpus Christi, Texas.
Do you need a job? Bloomberg reports that Big Oil is giving out big paychecks. The median pay for energy workers last year was $123,000. That beat out all sectors including tech, health care and utilities.