[Editor's note: A version of this story appears in the October 2021 issue of Oil and Gas Investor magazine.]

Even at $5 per Mcf, gas prices are cheap, says Charif Souki, co-founder and executive chairman of Tellurian Inc. That’s because the rest of the world is paying $22 to take it off your hands. And that arbitrage will continue pulling gas from U.S. producers for decades to come, he projects—despite the noise that says otherwise.

“You would think $5 gas is expensive, but it’s cheap on a global basis,” he said. “The American producer has to think in terms of a global marketplace, not simply an American marketplace. We’re blessed with an incredibly large resource base. It gives us an enormous inherent advantage.”

Souki shared his perspective with the Houston Producers Forum in September. His $15.5 billion, 27.6 mtpa Driftwood LNG project in Louisiana is expected to reach a final investment decision early next year.

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