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Author Topic: The battle over exporting natural gas Back to Topics
BurntOrange

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Austin

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Message Posted: Jan 11, 2013 7:33:02 AM

We’ve been telling you on Marketplace about America’s abundance of natural gas as a result of the controversial drilling technology, fracking. One emerging debate is: Since we have so much, should we export it? Drillers want to, but big industrial buyers aren’t so keen, and want to keep as much as home as possible. They just formed a new group in Washington -- with corporate lobbyists -- to push back.

The new group, America’s Energy Advantage, represents natural gas buyers, like American chemical companies. They’re thriving now, because domestic natural gas is the cheapest in the world.

Question is, should the U.S. liquefy and export gas to countries like Japan, and China? The Obama administration’s thinking about it. But George Biltz at Dow Chemical says the U.S. shoule set limits.


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LetemEatCake
Champion Author Oklahoma City

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Message Posted: Jan 12, 2013 10:34:15 PM


Well said, I agree Mac48 and NH. Both very good points!

Good article BurntOrange, thanks!
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DanMtz
Champion Author Oakland

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Message Posted: Jan 12, 2013 9:44:54 AM

In summary, Dow wants to keep the domestic supply high so they can buy it cheap and make a boatload of money. Natural gas suppliers want to sell to the highest bidder so they can make a boatload of money.
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jrs4125
Champion Author Indiana

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Message Posted: Jan 12, 2013 4:26:49 AM

Everything is for sale here in the US.
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drpepperTX
Champion Author Texas

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Message Posted: Jan 12, 2013 12:27:46 AM

How surprising! NHL against free trade and free markets. Further proof liberal statism. they want to restrict freedom and liberty so they can then re-distribute it to those they deem worthy.

As I pointed out earlier, exporting products would lead to more supply produced to meet demand keeping this plentiful resource more affordable for the US. Economics 101, plain and simple.
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NHLiveFree
Champion Author New Hampshire

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Message Posted: Jan 12, 2013 12:20:18 AM


It is only misguided if you are an industry shill speaking for the oil and gas industry and only interested in maximizing profits off our natuaral resources. In this case, it is not renewable. When it is gone, it is gone for all time!
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MAC48
Champion Author Dallas

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Message Posted: Jan 12, 2013 12:18:37 AM

How about this angle. We keep our domestically produced natural gas here in the US and use the amounts that the natural gas company producers want to export as the feed stock or the energy source to manufacture products for export and domestic consumption using domestic labor and manufacturing facilities. This would keep the domestically produced natural gas here, increase domestic employment and utilize dormant or under utilized domestic manufacturing facilities.

Just a thought.
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NHLiveFree
Champion Author New Hampshire

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Message Posted: Jan 12, 2013 12:17:30 AM


It is long overdue to start a policy to keep all natural resources of the USA in the USA. Since were are the biggest consumers in the world, we cannot afford to send these resources overseas at any price.
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LetemEatCake
Champion Author Oklahoma City

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Message Posted: Jan 11, 2013 11:47:27 PM


Interesting article BurntOrange! Thanks for posting.
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JeffersonState
Champion Author Oregon

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Message Posted: Jan 11, 2013 5:47:26 PM

It needs to be managed for the long term in the best interests of the nation, not for the short term of the oil barons. Also any export should be taxed as a depletion just like exported timber is taxed.
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nsdp
Champion Author San Antonio

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Message Posted: Jan 11, 2013 3:52:14 PM

Given America's poor access to markets I am not sure how competitive US LNG will be. To Europe, Algeria Nigeria, Libya are all only 3-4 days sailing instead of two weeks. Qatar is on 5-6 days ailing. Freight costs from the US are going to be double or triple competitors. In Asia Indonesia and Australia are 7 days from Japan and 3-7 days from China (Hong Kong vs Shanghai). Two-three weeks from the US and Middle East is only 10 days. If Russia starts to get undercut in Europe they can match US well head prices before the LNG is stored or shipped.

Adam Smith's invisible hand will work just like it does now. Cheaper to ship oil from Corpus Christi to Quebec than from Europe to Canada.
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teenitup
Champion Author Houston

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Message Posted: Jan 11, 2013 3:00:02 PM

Good to see someone remembers their economics courses!
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drpepperTX
Champion Author Texas

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Message Posted: Jan 11, 2013 2:40:30 PM

The opposition to exporting NG is misguided.

The US Energy Information Administration has demonstrated that export would increase domestic production and at the same time keep the domestic prices stable.

Increased exports of LNG will likely end up increasing domestic NG production. The reasoning is that US energy supplies are not static, they will expand and contract as they become more or less economic to produce. If more markets are opened to their sale, then there will be more demand, more investment and more produced. More trade means more supply to meet that demand and stable pricing and along with that there will be more US jobs and expansion of the US economy.

The Economic 101 of free trade.
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deputydog082
Champion Author Detroit

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Message Posted: Jan 11, 2013 1:26:27 PM

all big oil cares about is big $$$ not our citizens
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ss70
Champion Author Detroit

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Message Posted: Jan 11, 2013 12:04:58 PM

not at the expense of americans
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boatcatawba
Veteran Author Cleveland

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Message Posted: Jan 11, 2013 12:02:38 PM

Do not export.
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ErnieK9LO
Champion Author North Dakota

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Message Posted: Jan 11, 2013 11:19:34 AM

Keep natural gas regulated and do not export natural gas.

Minot, ND has some of the highest gas prices in ND. Lets get the prices down.
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mitt4prez
Champion Author Tacoma

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Message Posted: Jan 11, 2013 11:15:15 AM

"Keeping limits on it would help lots of areas of the US economy, wherever a business has natural gas as part of their production."

Keeping limits on it just gets the dam govt deeper still into business, with the attendent corruption and lobbying. How many lessons in govt inadequacy do the citizenry need? Way too depressingly many, if the last election means anything.
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peakkeller
Champion Author Colorado Springs

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Message Posted: Jan 11, 2013 11:06:49 AM

Keeping limits on it would help lots of areas of the US economy, wherever a business has natural gas as part of their production.
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crep1291
Champion Author Ottawa

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Message Posted: Jan 11, 2013 10:40:49 AM

I would be very surprised if the oil&gas lobby doesn't win that battle.
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gbs1
Champion Author Minnesota

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Message Posted: Jan 11, 2013 10:39:06 AM

We should keep it here, but the producers will export it if they can increase profits. This is whats happening in the distillate fuel market.
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SUNOIL
Champion Author Toledo

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Message Posted: Jan 11, 2013 9:46:43 AM

Export it and watch our prices go up
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buzzieNY
Champion Author Buffalo

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Message Posted: Jan 11, 2013 9:30:57 AM

Keep it here.
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BigRedVTX
Champion Author Georgia

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Message Posted: Jan 11, 2013 9:18:52 AM

Converting to Liquid natural gas would,no doubt, enhance someone's economy.
However, there is (as noted in another article) a lack of facilities to convert this over to it's liquid form. Further, the expense of building the facilities has made many reconsider their initial thoughts.
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skempton
Champion Author Vermont

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Message Posted: Jan 11, 2013 8:47:49 AM

Exporting would certainly help the balance of payments.
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amoshins
Champion Author Trenton

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Message Posted: Jan 11, 2013 8:44:48 AM

Not sure how we can win here
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txequitygas
Champion Author Houston

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Message Posted: Jan 11, 2013 8:35:41 AM

if you sell it, it helps the dollar stay stronger and oil prices go down, but NG prices go up. If you hold it, the dollar gets weaker and the imported oil prices go up.. Damned if you do damned if you don't.
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zwsn01
All-Star Author Alabama

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Message Posted: Jan 11, 2013 8:33:01 AM

Keep CNG at home.
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Joeski1
Champion Author New Jersey

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Message Posted: Jan 11, 2013 8:25:01 AM

the idea presented by our US corporate dirty energy producers is to make and sell energy to the highest bidder no matter where the cash comes from or the amount of damage caused.

Got it?
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joekool1
Champion Author Toledo

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Message Posted: Jan 11, 2013 8:24:32 AM

if we use it ourselves why export it ?
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AVKZ
Champion Author Kalamazoo

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Message Posted: Jan 11, 2013 8:22:20 AM

I thought the point was to drill here so we are less reliant on overseas supply.
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SycamoreISU
Champion Author Indiana

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Message Posted: Jan 11, 2013 8:13:16 AM

FPLREP has an interesting idea.
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GingoutMD
Champion Author Maryland

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Message Posted: Jan 11, 2013 8:06:59 AM

The fear I have is that the demand overseas is so great that we will end up exporting more and more driving up the prices (producers = happy, consumers = unhappy).
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FPLREP
Champion Author Virginia

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Message Posted: Jan 11, 2013 8:03:59 AM

How about this idea? Set an upper cap on price. If the price of natural gas reachs this point all exports stop until the price drops below the cap.
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Hawg1408
All-Star Author Alberta

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Message Posted: Jan 11, 2013 7:59:15 AM

Keep it here.
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badbonita
Champion Author Syracuse

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Message Posted: Jan 11, 2013 7:57:12 AM

IF we export then the price of natural gas locally should be held at the same percentage as gasoline costs in oil producing countries. If the price can't be maintained at such an equivalent price, keep the NG here.
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Evilmaddog
Champion Author British Columbia

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Message Posted: Jan 11, 2013 7:56:18 AM

$$$$$$$$$$
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BurntOrange
Champion Author Austin

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Message Posted: Jan 11, 2013 7:52:18 AM

Free markets.
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coughlin
Champion Author San Jose

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Message Posted: Jan 11, 2013 7:51:31 AM

Let them buy.
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molebaby96
Champion Author Tallahassee

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Message Posted: Jan 11, 2013 7:40:04 AM

It will drive up the price.
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