Even the Great Elon Musk Can’t Build E-Cars Without Natural Gas
Elon Musk is like a god to the wacko environmental movement. For those who don’t know, Musk founded PayPal in 1999. He then founded SpaceX in 2002 and Tesla Motors in 2003. Tesla manufactures electric-only cars. Musk became a multimillionaire in his late 20s when he sold his start-up company, Zip2, to a division of Compaq Computers. In January 2021, Musk reportedly surpassed Jeff Bezos as the wealthiest man in the world. But some of the bloom is coming off the rose of Elon Musk–at least for woke leftists. You see, Elon has a nasty natural gas habit. The god has fallen…
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For years Vermont has made millions of dollars selling Renewable Energy Credits (RECs) to other states–a scam that allows pretentious environmentalists to claim they’re helping out the environment when in fact they still burn the same fossil fuels and biomass (i.e. woodburning) as they always did by paying a fee, a REC, and absolving themselves of feeling bad about it. Think of modern-day RECs like the Catholic Church selling indulgences in the Middle Ages to absolve you of your sins, or at least lessen the punishment for your sins. RECs are the new indulgences of the post-everything era we live in now. Selling REC indulgences is about to go away for Vermonters, and it may lead to widespread blackouts.
New Fortress Energy (NFE), which likes to build and own as much of the LNG supply chain as possible, built and operates an LNG import terminal in San Juan, Puerto Rico. After the facility was up and running, the Federal Energy Regulatory Commission (FERC) dinged the company, asking for an explanation as to why they built it without FERC “Mother May I?” permission. New Fortress responded last July saying FERC told them no permission was needed (see 
Feedgas, the natural gas flowing to U.S. LNG export terminals that gets liquefied and shipped to foreign destinations, hit a new all-time high on Wednesday: 11.65 billion cubic feet (Bcf) in a single day. All six major U.S. LNG export facilities currently in operation contributed to the surge, including Cove Point in Maryland and Elba Island in Georgia (both export 100% Marcellus/Utica molecules). M-U molecules are also exported from most of the other four active LNG export facilities, including large amounts of our molecules flowing to Cheniere Energy’s Sabine Pass facility.
New Fortress Energy (NFE), the brainchild of billionaire Wes Edens, came out of nowhere just a few years ago to become one of the world’s leading natural gas infrastructure and logistics operators, delivering natural gas (typically LNG) to customers in a number of other countries. NFE also builds and operates gas-fired electric plants in some of those countries. They own most of the supply chain, from liquefying the gas to shipping it, unloading it, and using it in plants built and operated by the company. We track NFE for their plan to build an LNG liquefaction plant in Bradford County, PA (northeastern part of the state). What’s happening with that project?
Just at the time U.S. exports of LNG are once again ramping up, along comes a “bipartisan” group of legislators proposing a bill to require some LNG exports (as well as some petroleum exports) to be transported from our shores on U.S.-built and U.S.-flagged LNG carriers. The problem is, none currently exist! This is yet another massive screwup coming from some who mean well, and some who don’t. Some of the people backing the bill, like hapless Sen. Bob Casey (from Pennsylvania) likely don’t know this bill will destroy exports of Marcellus/Utica molecules. He’s just too dull to comprehend it. But others, we suspect, know exactly what this bill would do.
Shell, one of the world’s biggest traders of LNG, released its fifth annual LNG Outlook report for 2021 last week (full copy below). Shell says global demand for liquefied natural gas (LNG) increased from 358 million tonnes (Mt) in 2019 to 360 Mt in 2020. It would have been a lot higher had it not been for the coronavirus pandemic and the shutdown of the worldwide economy. Hauling out the crystal ball, Shell makes a compelling case in the latest Outlook that worldwide demand for LNG will double to 700 Mt by 2040–in under 20 years! Can you imagine?
The U.S. Energy Information Administration (EIA) recently issued its Annual Energy Outlook for 2021 (see 
Virtual pipeline company Xpress Natural Gas (XNG), which operates a major compression station/trucking facility not far from MDN headquarters, has agreed to sell itself to Basalt Infrastructure Partners, an investment firm located in London and New York City. The sale price was not disclosed.
The City of Monroe, North Carolina is a shining example of what other cities should do. The city recently launched a new LNG facility online (took three years to build). The city buys natural gas on the open market when the price is low, liquefies and stores it, and then regasifies it for use later–saving residents money. Smart folks running Monroe.
This is an early test for how the Biden administration, specifically Biden’s pick to run the Federal Energy Regulatory Commission (FERC), Richard “Dick” Glick, will respond to requests for additional infrastructure related to fossil fuels. Last week Venture Global filed a “pre-filing” request with FERC ultimately looking for permission to build a major new LNG export facility next door to another facility (Calcasieu Pass Project) Venture Global is currently building. The new project is dubbed CP2 and will come with a (gasp) 87.5-mile greenfield pipeline.