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Thomas Farrell, Dominion chairman and CEO, on the permits the company has received to export energy to free-trade countries.
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These are requesting permits to do just that joining us now Richard -- -- and a Fox Business exclusive.
Thomas Farrell chairman president and CEO of dominion Tom.
You received a -- to start exploring LNG liquefied natural gas to free trade countries.
Are you waiting to hear on whether you can export to other places like your company's out.
Are good afternoon and thanks for having me on yes -- there's -- to hear you talk about permit from the Department of Energy.
We have received one to export to NAFTA countries and we asked for another two export to the rest of the world which is about 9%.
The rest of world where -- Bigger markets are that'll be later this year.
People would be concerned about the idea of exporting energy right now when we seem to have an energy crisis -- United States you know gas prices.
Are related because of course that's you know made from oil that's gasoline but people seeing our energy -- shores and -- somewhere else.
Makes -- very nervous what you say to make them feel better about that.
Well there's some several answers to -- first not enough of it -- -- being exported leave our shores to have anything other than a very modest.
Impact on the prices.
I think you compare this to just 1012 years ago the United States was going to be run out of gas.
By 2015 point one it.
And a number of -- import facilities were built including one that we -- which is under long term contracts.
About forty permits -- sought to to build import facilities in twelve or thirteen of them were actually built.
So right now people were seeking permits for about twelve billion cubic feet a day of exports I think it will be more like five or six.
But the most and we produce right now almost 65 BCF today.
About a time -- -- gases in the Marcellus and you occur built -- can be a lot more than that so.
You're not talking about exporting a very large percentage of of what the American product this.
-- right time so demeaning has -- largest storage capacity for natural gas.
How.
Can you.
I guess -- trying to get a sense is how full is -- and if you can give me an idea of what that says to you about where the price of natural gas here is going forward.
Well we're we're not allowed to talk about exactly how are how are full our assets are but we do report is a part of overall -- gas storage which is -- reported.
Publicly about it CIA it's it's gas storage is.
Very fall it's well above.
The five year rolling average.
It will be were starting injection season meaning reporting gas back into storage normally that wouldn't start so.
But later in the spring it's been a very very mild winter.
And we are -- In -- yet Tom I mean we're looking at the contract right now natural gas prices have gotten.
Absolutely hammered I mean they're sitting in just about to box I remember being at the nymex when they were trading at fifteen bucks how -- crisis is this for your company.
Well we don't produce natural -- All we do is provide the transportation.
Four -- so the actual price of gas.
Has very low impact on our company's earnings other them source -- merchant power generation we have a New England which we have under under long term longer.
Term hedges.
So it's not a problem for our company but it is it is an overall problem and in your what are your prior view prior speaker touched on us.
Natural gas at two dollars and MCF is not a sustainable.
Number of people will quit growing.
And you'll see a snap back because they can't make any money what they'll start losing money the only reason we have drilling going on right -- the drilling.
So called wet gas.
Which has sort of liquids in -- that has -- -- processed out and that the liquids are priced off the price of of oil.
So they're they're seeking wet gas right now dry gas wells or curtailing already.
The stability will start to -- it -- two dollar gas is too low revenue -- -- we all wanna have low commodity prices but there's a point where it's too.
In -- -- lead to of high volatility in the sector over time is that what you -- foreseeing Tom.
I think there's -- you're gonna stay where we are for the next several months may be through the fall.
In depends on what happens next winner but.
Producers are shutting him you will see a modest rise in gas -- a lot of gas we're not gonna go back to the thirteen dollars fourteen dollars.
That you saw which is post-Katrina.
Rate after all the gas infrastructure was wiped out the Gulf of Mexico that's not gonna happen again I don't believe it.
I think you're looking more at a four dollar kind of vote stable level which -- -- double where we are to -- -- right Tom Carroll thanks so much for joining us.
Thank you.
We're number one we're about to be just -- and up next find out what lists this time -- ready to top and like published -- I don't like them.
