America’s Natural-Gas Bounty Is Cushioning U.S. Markets From Global Shocks

Prices for the heating and power-generation fuel have surged around the world, but not in the U.S.

By Ryan Dezember of The WSJ. Excerpts:

"Natural-gas prices around the world surged this past week after the largest LNG export facility on earth was shut down by an attack from Iran. Prices in the U.S. climbed a relatively tame 11%.  

Americans aren’t likely to feel much pain from higher power bills as they did four years ago when energy markets were shocked by Russia’s invasion of Ukraine, analysts say. They can thank ample domestic inventories, record production and capacity to export LNG from the U.S. that is—for now, at least—pretty much maxed out."

"It’s another story overseas. Benchmark gas prices jumped 67% this past week in Europe, which became more reliant on LNG to keep the lights on after shunning Russian suppliers four years ago. Prices rose sharply in Asia as well, where most LNG shipments from the Persian Gulf wind up.

QatarEnergy halted LNG production after its Persian Gulf facilities were targeted, pulling the plug on about 20% of the world’s capacity. Even if running, it’s unclear when its explosive cargoes could pass through the Strait of Hormuz without risking an Iranian attack."

"Unlike in Europe, where gas inventories are unusually low, the U.S. is ending the winter heating season with plenty in storage."

"U.S. gas exporters don’t have capacity available to ship much more LNG abroad than they already are, and much of their current output is spoken for in 20-year supply deals."