businesstrade.jpg

The Foolish Exporting Natural Gas Policy

$
Daily Business Report
M A R K E T S
Mercantile
Article Archives
US Economic Forecast for 2012 and the Election Year Cycle
Shop the Local Merchant Economy
Right to Work vs Union State Economies
Rational Tariffs Lower Irrational Trade Deficits
International Business - Davos Style
Banking, Housing and Mortgages
David Stockman's Viewpoint on the Obama Budget Disaster
Regulations Harm Small Business and Protects Corporations
Gas Prices as an Indicator of Energy Costs
Governments Acting as Venture Capitalists
College Education Economics
Industrial Wind and the Production Tax Credit
Medicare and the Ryan Budget
U.S. Corporate Tax Rate Consequences
Corporate Spying and Intellectual Theft
The Foolish Exporting Natural Gas Policy
A Matter of Time for a VAT Tax
Big vs Small Bank Loans
Bankruptcy Trends in the Post Meltdown Era
Money Center Banks and Stricter Financial Oversight
Electric Power Generation under NYS Article X
Growth in the National Debt
Advantages of Chinese Trade Policy
Unemployment as a Lifestyle
Immigration Hurts American Employment
Bank for International Settlements on Big Banks
Small Business Assault from Obamacare
Compound Interest and the Debt Bubble
The Federal Centralization Economy
Parking Offshore Profits Hurt the Domestic Economy
The Record of Olympic Economics
Financial Algorithmic Trading
Goldman Sachs Above the Law
The MF Global Magical Mystery Tour
Destroying Internet Freedom by Taxation
The Permanent Unemployment Economy
Jackals of Jekyll Island - Federal Reserve Audit
QE3 Blowing Up the Debt Bubble
Riots Over Rotten Apple Mania
Gap Between College Costs and Inflation
Counterproductive Minimum Wage Mandates
Derivative Meltdown and Dollar Collapse
Central Banks Game Plan: One World Currency
European Commission Single Supervisory Mechanism
Lunacy of FEMA Hurricane Insurance Subsidy
Taxmageddon Holding Hands while Jumping Off the Cliff
The Direction of Equities in the Obama Economy
Is it FAIR to Tax the Rich out of Business?
California Dreaming: Bankruptcy, Pensions and Taxes
Pay Differential - Private Sector and Federal Government
Long History of HSBC Money Laundering
Swan Dive of 2013 Economy
Federal Reserve May Pause Quantitative Easing
The Economics of Sequestration
The state-owned Bank of North Dakota
Chinese Takeover with Free Trade Zones
Low Interest Rates Impoverish Savers
Bond Bubble Expectations
Currency Wars - Race to the Bottom
Government Subsidizes and Bankrupt Companies
Economics of Gun Control
Refuse to Buy or Sell with the Federal Government
The Cyprus Great Bank Robbery
Keystone Pipeline Blockage
Move Over IMF for the BRICS Development Bank
Obama Budget Proposes Cuts to Social Security and Medicare
The Risk and Reward of Bitcoins
Farm Supports and Social Welfare
Internet and Sale Taxes Dialectic
The Warren Buffett House of Cards
IRS as a Political Hit Squad
Revenue Budget Projections
Google and the NSA Connection
The Roubini - Faber Debate
Hydrofracking Boom or Bust
Goldman Sachs - first learn, then earn and serve
The Federal Reserve after Ben Bernanke
Implications of a Pyrrhic Real Estate Rebound
The New Normal: Part-Time Employmentyment
U.S. & Europe Trade Deal Honeymoon
Detroit City Bankruptcy Blues
J P Morgan and Commodity Manipulation
Strange Business Success Ventures
Business of Evangelism Religion
NFL Marketing Machine
Privacy Gone on Offshore Assets
Chinese Banks Quasi Government Institutions
Forecasts of a Doomed Economy
Financial Meltdown Five Years After
Corporate Profits and Worker Unemployment
Renminbi Soon to Be a Reserve Currency
Rehypothecation of Collateral
IMF Proposal to Tax Bank Deposits
Transfers excluded, JP Morgan Chase is Wired
Insurance Companies Profit from Obamacare
Climate Change by Executive Order
Economics of Non-governmental Organizations
Why Business Franchising is a Bad Deal
The Business of the Christmas Season
China Becomes Largest Trading Nation
Obamacare as a Jobs Killer
Does a 100 Trillion Debt Total Matter?
Underground Commerce is the Real Economy
BREAKING ALL THE RULES
BREAKING ALL THE RULES Forum
BATR Index
hub
Corporatocracy
Reign of Terror
Stuck on Stupid
Totalitarian Collectivism
Global Gulag
Inherent Autonomy
Radical Reactionary
Strappado Wrack
View from the Mount
Solitary Purdah
Dueling Twins
Varying Verity
911 War of Terror
HOPE

NGExports.jpg

The Foolish Exporting Natural Gas Policy

The lack of a government policy that promotes domestic energy independence in the United States is a tragic consequence of playing politics for decades. The current rage is the natural gas boom that offers the alternative of producing a plentiful and inexpensive source of fuel. Economic prosperity rests upon cheap and reliable power and natural gas offers the best option. The pricing of natural gas is regional and quite different from trading crude oil. Loren Steffy reports in the Houston Chronicle, "A surge in drilling for gas from shale formations around the U.S. has generated a glut of natural gas, pushing prices below $2 per million British thermal units."Forbes set out the basic dilemma that conflict with the true long-term internal energy benefit, from the use of our own resources, for the national interest.

"The U.S. government may soon decide on the request from Cheniere Energy to build an LNG export terminal that allows the company to liquefy natural gas and export to international markets, where prices are much higher than in America.

Natural gas exports could allow companies to take advantage of higher gas prices in Asian and European markets and ease the supply glut in the U.S."

Hello, just think about this corporatist lunacy that wants to grab up our own natural gas supplies at rock bottom price, so that companies can export a crucial national resource, to foreign markets that are willing to pay $10.00 and above, merely for the enrichment of some business enterprise. An American government policy that allows for this legalized theft is absurd.

The true underlying basis for establishing a supply and demand floor for a national gas source is to transition gasoline and diesel vehicles to burn natural gas. This obvious assessment received major push back because it disrupts the oil monopoly for fueling cars, buses and trucks.

naturalgas.jpg

Since the cost of natural gas has averaged above $6.00 per BTU for the last decade, the cost for conversion should anticipate a much higher price when the gas fracking rage comes down to reality. The idea that insufficient regulated policing of a dangerous process of chemical and water contamination is justified in order to export natural gas is shameful.

As long as shortsighted politicians and insatiable companies seek to misuse our internal resources for international greed, the country will suffer another round of energy dependency.

Note the significance from the Executive Order: Feds To Take Control of Domestic Natural Gas Production.

"The President’s order establishes an "Interagency Working Group" to be composed of deputy level or higher representatives from federal agencies that include the Defense Department, Transportation, Agriculture, Health and Human Services, Energy, Homeland Security, and the Environmental Protection Agency.

Moreover, because a key stated purpose of the Executive Order is to ensure long-term supplies, the President’s decree gives the federal government the ability to shut down gas production operations as they see fit, potentially leading to government price fixing and centralized control of an essential natural energy resource."

Wrapped in the guise of ensuing domestic natural gas supplies is the actual drive behind the fracking rage. Exporting Natural Gas Would Be Very Profitable For North American E&P Companies admits the unmistakable motivation that confirms the previous report.

"The best way to alleviate the problem of natural gas oversupply in North America is to increase its export. The most economical way to export natural gas is to liquefy it; this type of natural gas is called LNG. In its liquid state natural gas takes up 1/600 of its normal volume, making it ideal for export. There are currently over 100 production, export and storage facilities in the U.S. Many companies have submitted applications with the U.S. Department of Energy for LNG export terminals, such as BG and Sempra (SRE). The nation's largest exporter of LNG is Cheniere Energy (CQP). Last year, Cheniere's Sabine Pass terminal was the first export terminal project in more than 40 years to get authorization from the U.S. Department of Energy to export natural gas to major importing countries."

naturalgasexport.jpg

An executive order does not make a sound energy policy. The Energy Department continues its pattern of stripping domestic independence production. The fact that our natural resources are squandered for export will never develop a marketplace where inexpensive domestic usage becomes the driving fuel behind a viable national transportation system.

How can anyone reasonably expect that an agency established by President Jimmy Carter will do any better? What came from the shale oil or coal conversion initiatives of the late 1970’s? Continuous government incompetence and misguided export direction will never restore economic affluence on the home front.

Natural gas is a superior fuel resource that needs to benefit our own consumers. As long as national policy ignores this goal, our interests will continually be shipped overseas.

The growth trend for using natural gas worldwide is clearly advancing. The Obama administration wants to eliminate electric generation from coal. Natural gas will become the energy of choice for utilities. Is it not time to establish a long-term market ceiling on electric costs?

Pursuing and encouraging a LNG sell abroad strategy just rewards the gas drillers and exporters. The very real risks and environmental fallout from unsafe fracking methods are a bad trade off when the natural gas ultimately goes for foreign use.

As gas exploration advances and production increases, the opportunity is historic to lower our domestic fuel costs. This is no time for allowing the exporters to exploit the natural gas resource of America.

James Hall – April 18, 2012

Discuss or comment about this essay on the BATR Forum

a free speech forum open to the public
BATRforum.gif

This site  The Web 

marketslogo.gif

tumblr page counter