Russia’s invasion of Ukraine has thrown the global energy market into disarray, but one energy executive believes the US might step in to help shore up global supply.
Toby Rice, the CEO of EQT, the largest natural gas producer in the United States, told Reuters that the US could readily replace Russian supplies.
Mr. Rice stated, “We have the power to do more and they want to do more.”
According to him, the United States has the capacity to triple its gas production by 2030.
Mr. Rice’s remarks come less than a week after US Energy Secretary Jennifer Granholm pushed the country’s fuel business to pump more oil.
Ms. Granholm stated, “We are on a war footing.” “That means you’re going to produce more right now, if and where you can.”
In response to higher pricing, shale companies have increased production twice in the last decade, drilling so much that prices plummeted and many went bankrupt.
Mr. Rice added that the sector is now more cautious: “It has to be demand first, not just chasing short-term price signals,” he said.
EQT, based in Pittsburg, may also be able to boost output. However, without more pipelines, it will be unable to transport the gas to where it is most needed.
A lack of export facilities is another stumbling block to the United States’ aim to export more liquefied natural gas. Terminals in the United States are transporting nearly all of the gas they can.
Before natural gas can be exported overseas, it must first be cooled to below minus 260 degrees Fahrenheit, thus turning it into a liquid. The goods can then be loaded aboard ships.
In the United States, eight ports are currently operational, with 14 additional projects approved for construction.