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Author	Topic: The battle over exporting natural gas	Post a Reply Back to Topics

BurntOrange Champion Author Austin Posts:8,722 Points:1,582,840 Joined:Nov 2007	Message Posted: Jan 11, 2013 7:33:02 AM Ignore BurntOrange Report Abuse 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. Visit Marketplace for full article

BurntOrange

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Austin

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

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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.

Visit Marketplace for full article

REPLIES (newest first)Ignore Short Messages

LetemEatCake Champion Author Oklahoma City Posts:5,596 Points:1,204,730 Joined:Mar 2008	Message Posted: Jan 12, 2013 10:34:15 PM Ignore LetemEatCake Report Abuse Well said, I agree Mac48 and NH. Both very good points! Good article BurntOrange, thanks!
DanMtz Champion Author Oakland Posts:3,350 Points:1,242,350 Joined:Oct 2009	Message Posted: Jan 12, 2013 9:44:54 AM Ignore DanMtz Report Abuse 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.
jrs4125 Champion Author Indiana Posts:2,758 Points:591,745 Joined:Sep 2011	Message Posted: Jan 12, 2013 4:26:49 AM Ignore jrs4125 Report Abuse Everything is for sale here in the US.
drpepperTX Champion Author Texas Posts:8,945 Points:752,210 Joined:Apr 2011	Message Posted: Jan 12, 2013 12:27:46 AM Ignore drpepperTX Report Abuse 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.
NHLiveFree Champion Author New Hampshire Posts:11,092 Points:1,622,370 Joined:Jun 2008	Message Posted: Jan 12, 2013 12:20:18 AM Ignore NHLiveFree Report Abuse 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!
MAC48 Champion Author Dallas Posts:1,547 Points:766,090 Joined:Dec 2006	Message Posted: Jan 12, 2013 12:18:37 AM Ignore MAC48 Report Abuse 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.
NHLiveFree Champion Author New Hampshire Posts:11,092 Points:1,622,370 Joined:Jun 2008	Message Posted: Jan 12, 2013 12:17:30 AM Ignore NHLiveFree Report Abuse 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.
LetemEatCake Champion Author Oklahoma City Posts:5,596 Points:1,204,730 Joined:Mar 2008	Message Posted: Jan 11, 2013 11:47:27 PM Ignore LetemEatCake Report Abuse Interesting article BurntOrange! Thanks for posting.
JeffersonState All-Star Author Oregon Posts:639 Points:155,325 Joined:Dec 2012	Message Posted: Jan 11, 2013 5:47:26 PM Ignore JeffersonState Report Abuse 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.
nsdp Champion Author San Antonio Posts:1,117 Points:47,315 Joined:Jun 2012	Message Posted: Jan 11, 2013 3:52:14 PM Ignore nsdp Report Abuse 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.
teenitup Champion Author Houston Posts:1,646 Points:249,935 Joined:Sep 2012	Message Posted: Jan 11, 2013 3:00:02 PM Ignore teenitup Report Abuse Good to see someone remembers their economics courses!
drpepperTX Champion Author Texas Posts:8,945 Points:752,210 Joined:Apr 2011	Message Posted: Jan 11, 2013 2:40:30 PM Ignore drpepperTX Report Abuse 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.
deputydog082 Champion Author Detroit Posts:1,786 Points:660,340 Joined:Apr 2011	Message Posted: Jan 11, 2013 1:26:27 PM Ignore deputydog082 Report Abuse all big oil cares about is big $$$ not our citizens
ss70 Champion Author Detroit Posts:9,660 Points:1,870,100 Joined:Sep 2005	Message Posted: Jan 11, 2013 12:04:58 PM Ignore ss70 Report Abuse not at the expense of americans
boatcatawba Sophomore Author Cleveland Posts:206 Points:145,735 Joined:Dec 2012	Message Posted: Jan 11, 2013 12:02:38 PM Ignore boatcatawba Report Abuse Do not export.
K9LO Champion Author North Dakota Posts:2,685 Points:543,980 Joined:Nov 2010	Message Posted: Jan 11, 2013 11:19:34 AM Ignore K9LO Report Abuse 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.
mitt4prez Champion Author Tacoma Posts:1,747 Points:1,245,900 Joined:Nov 2007	Message Posted: Jan 11, 2013 11:15:15 AM Ignore mitt4prez Report Abuse "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.
peakkeller Champion Author Colorado Springs Posts:1,691 Points:777,350 Joined:Dec 2009	Message Posted: Jan 11, 2013 11:06:49 AM Ignore peakkeller Report Abuse Keeping limits on it would help lots of areas of the US economy, wherever a business has natural gas as part of their production.
crep1291 Champion Author Ottawa Posts:2,578 Points:480,950 Joined:Dec 2010	Message Posted: Jan 11, 2013 10:40:49 AM Ignore crep1291 Report Abuse I would be very surprised if the oil&gas lobby doesn't win that battle.
gbs1 Champion Author Minnesota Posts:1,996 Points:742,375 Joined:Mar 2011	Message Posted: Jan 11, 2013 10:39:06 AM Ignore gbs1 Report Abuse 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.
SUNOIL Champion Author Toledo Posts:5,245 Points:1,925,255 Joined:Jul 2007	Message Posted: Jan 11, 2013 9:46:43 AM Ignore SUNOIL Report Abuse Export it and watch our prices go up
buzzieNY Champion Author Buffalo Posts:2,893 Points:635,555 Joined:Jun 2011	Message Posted: Jan 11, 2013 9:30:57 AM Ignore buzzieNY Report Abuse Keep it here.
BigRedVTX All-Star Author Georgia Posts:872 Points:503,055 Joined:Jun 2011	Message Posted: Jan 11, 2013 9:18:52 AM Ignore BigRedVTX Report Abuse 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.
skempton Champion Author Vermont Posts:1,144 Points:839,160 Joined:Apr 2010	Message Posted: Jan 11, 2013 8:47:49 AM Ignore skempton Report Abuse Exporting would certainly help the balance of payments.
amoshins Champion Author Trenton Posts:2,195 Points:641,645 Joined:Apr 2011	Message Posted: Jan 11, 2013 8:44:48 AM Ignore amoshins Report Abuse Not sure how we can win here
txequitygas All-Star Author Houston Posts:793 Points:156,015 Joined:Dec 2012	Message Posted: Jan 11, 2013 8:35:41 AM Ignore txequitygas Report Abuse 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.
zwsn01 All-Star Author Alabama Posts:691 Points:440,150 Joined:Jan 2012	Message Posted: Jan 11, 2013 8:33:01 AM Ignore zwsn01 Report Abuse Keep CNG at home.
Joeski1 Champion Author New Jersey Posts:10,001 Points:1,741,835 Joined:Dec 2004	Message Posted: Jan 11, 2013 8:25:01 AM Ignore Joeski1 Report Abuse 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?
joekool1 Champion Author Toledo Posts:1,099 Points:131,280 Joined:Sep 2012	Message Posted: Jan 11, 2013 8:24:32 AM Ignore joekool1 Report Abuse if we use it ourselves why export it ?
AVKZ All-Star Author Kalamazoo Posts:846 Points:294,025 Joined:Apr 2012	Message Posted: Jan 11, 2013 8:22:20 AM Ignore AVKZ Report Abuse I thought the point was to drill here so we are less reliant on overseas supply.
SycamoreISU Champion Author Indiana Posts:1,040 Points:259,685 Joined:Jan 2012	Message Posted: Jan 11, 2013 8:13:16 AM Ignore SycamoreISU Report Abuse FPLREP has an interesting idea.
GingoutMD Champion Author Maryland Posts:3,495 Points:713,305 Joined:Jan 2010	Message Posted: Jan 11, 2013 8:06:59 AM Ignore GingoutMD Report Abuse 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).
FPLREP Champion Author Virginia Posts:8,261 Points:2,448,250 Joined:Oct 2005	Message Posted: Jan 11, 2013 8:03:59 AM Ignore FPLREP Report Abuse 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.
Hawg1408 Veteran Author Alberta Posts:447 Points:641,165 Joined:May 2010	Message Posted: Jan 11, 2013 7:59:15 AM Ignore Hawg1408 Report Abuse Keep it here.
badbonita Champion Author Syracuse Posts:6,224 Points:1,353,710 Joined:Jul 2008	Message Posted: Jan 11, 2013 7:57:12 AM Ignore badbonita Report Abuse 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.
Evilmaddog Champion Author British Columbia Posts:3,322 Points:957,550 Joined:Aug 2010	Message Posted: Jan 11, 2013 7:56:18 AM Ignore Evilmaddog Report Abuse $$$$$$$$$$
BurntOrange Champion Author Austin Posts:8,722 Points:1,582,840 Joined:Nov 2007	Message Posted: Jan 11, 2013 7:52:18 AM Ignore BurntOrange Report Abuse Free markets.
coughlin Champion Author San Jose Posts:5,185 Points:1,117,865 Joined:Sep 2009	Message Posted: Jan 11, 2013 7:51:31 AM Ignore coughlin Report Abuse Let them buy.
molebaby96 Champion Author Tallahassee Posts:2,121 Points:505,165 Joined:Nov 2011	Message Posted: Jan 11, 2013 7:40:04 AM Ignore molebaby96 Report Abuse It will drive up the price.