Bob FraserCFO & Macro Strategist | Data-Driven Investing Expert | Speaker & Author

America is the Saudi Arabia of Natural Gas | Bob Fraser from Aspen Funds

Name: America is the Saudi Arabia of Natural Gas | Bob Fraser from Aspen Funds
Uploaded: 2022-07-15T20:00:04+00:00
Duration: 49 s
Channel: Bob Fraser
Description: In this brief commentary, Bob Fraser likens the United States to a "Saudi Arabia of natural gas" due to its vast gas reserves and historically low…

15 Jul 2022 · 1 min

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In this brief commentary, Bob Fraser likens the United States to a "Saudi Arabia of natural gas" due to its vast gas reserves and historically low domestic prices (around $2 per thousand cubic feet). He highlights the stark price disparity between the U.S., Europe (where prices are 5‑7 times higher), and gas‑importing regions like Japan. Fraser explains that LNG exporters profit by compressing and shipping U.S. gas to capture this spread. He notes a recent four‑fold surge in natural‑gas prices, turning LNG from a peripheral consideration for oil producers into a significant new revenue stream, and predicts that LNG will become an increasingly important factor in the energy market.

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And what people may not realize is that America is the Saudi Arabia of natural gas. We have tons and tons of natural gas. And so the prices are super high. Traditionally been about $2 per thousand cubic feet, $2 per thousand cubic feet of natural gas, where in, in Europe it's been 5, 7 times higher. And in Japan and other places that don't have natural gas, so there's a huge disparity. And so the LNG guys are basically taking this natural gas, compressing it, shipping it, and making the spread. But natural gas now has spiked up. It's gone up 4 times in value, in price. So it's becoming not an afterthought for local oil producers, but actually a real revenue source. So we're gonna see LNG becoming more and more of a factor.