Posted on 04/18/2012 12:39:09 PM PDT by Errant
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.
(Excerpt) Read more at marketoracle.co.uk ...
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.
I pretty much totally disagree with the author of this piece. First, it has yet to be proven that fracking is unsafe. Second, why shouldn't we be exporting a commodity such as NG when we also export corn, wheat and etc. The author should apply the same reasoning of driving up domestic energy costs to the exporting of food, which is encourage and even subsidized by the government.
What about the freedom and equal treatment of producers and land owners to sale NG under their property for the most value they can get? And what about the certainty of improving NG usage technologies like storage and utilization because of its increased usage and demand?
Finally, IMO, increasing demand for NG will decrease our independence NOT increase it as the author insists.
The Northeast and Maritimes Pipeline aka the Algonquin Pipeline comes down from Canada to MA. It’s a 30 inch pipe and goes through the back yards of 14 Middlesex County cities and towns.
Thanks for this thread.
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HEY! BATR! YEAH YOU!!!!!!!!!!!!!!!!!!!!!!!!
The very first damn thing you say is “The lack of a government policy that - - - “ !
Where have you been? Look up! Look around! Everything that has been touched by the Federal Fecal Finger has turned to that “S” word that rhymes with “hit!”
We have an Arrogant Dictator Obama that is regulating America back to the Feudal System in Merry Old England where the Sheriff of Nottingham, (in this country it is the IRS headed by Timmy Gee), taxes the peasants into starvation, (in this country food stamps are used to keep us peasants from storming the “Big House” at 1600 Plantation Avenue).
Dictator “You Lie” Obama does not need any additional encouragement to come up with some Federal “policy” from Socialist fools like you!!!!!!!!!!!!!!!!!!!!!
In the Oil Patch you can shut the well in, flare (burn) the nat. gas, or sell the nat. gas.
The Natural Gas Market DEMANDS a specific amount of of nat. gas, and the owners SUPPLY the nat. gas.
The “Invisible Hand” of the Market will do a better job of equalizing SUPPLY and DEMAND, because the intersection of SUPPLY and DEMAND is called PRICE.
The Market PRICE is what politicians will never understand. They only understand the ANTI-Price, which is TAXES, REGULATIONS, and POLICY.
BTW, just who DOES pay your salary for writing this sort of Socialist drivel?
This is the same old "global warming is settled science" angle.
i.e. it's been rumored in the news therefore it must be taken as doctrine.
As a very salient post earlier today pointed out:
“Looking strictly at the energy content, the price of a barrel of crude oil should be about six times the price of 1,000 cubic feet (1 mcf) of natural gas. In the United States, oil prices have floated around $100 per barrel while natural gas prices have fallen to near $2 per mcf, a ratio of 50 to 1.”
That’s an 8-fold difference. The energy content of a gallon of gas that costs us $4 could be provided from natural gas at a cost of under 60 cents.
Using, NOT EXPORTING, natural gas is the biggest no-brainer in the history of earth. The price could triple and we’d still be way ahead.
HAR!!! I guess you told him. You beat me to the punch and you are on target! High five!!!!
Well, we'd better sell something abroad, and let people redeem some of the dollars they're holding.
Keeping a bottom in Natural Gas prices will help keep the supply coming: if it's too cheap, no one is going to drill for it, and then the supply will be short and the price will jump--much like oil has done in the past (same dynamics).
Drillers and exporters aren't in the business so they can cuddle up with their teddy bears at night with a belly full of warm fuzzies, they are there, risking capital for the purpose of receiving a return on their investment. Profit drives the system, and that leads to employment and prosperity which spreads far beyond a drilling rig.
'Environmental risks': Fracking has yet to be shown to have created downhole problems with or subsurface contamination of aquifers.
Any problems have come from surface contamination associated with spills, illegal dumping (rare if someone wants to stay in business), or rare blowouts.
A large amount of Natural Gas is produced as a byproduct of oil production. Higher prices make it more often economical to capture that natural gas and sell it rather than flare it because its sale will not pay for the production infrastructure and equipment needed to get it to market. When prices are too low, it is far cheaper to flare the gas and pay the mineral rights owner royalties on the value of it and any taxes (extraction tax) due on it than try to capture it for market.
If they are so concerned, environmentally or otherwise, maybe they shoould consider exporting some so more is used other than as a prairie nightlight.
From reading this nonsense, if there was a world market for stupidity, sometimes I think we could corner it.
Unless you owned the gas.
By exporting it, the price will triple and they will make more profit.
While I love low prices, the folks selling it like high prices.
Back in the 70s I owned some natural gas well and when prices were high, I was knee deep in cash, and after RR came in and prices went down, I lost my ass.
It all depends where you are standing.
Producing countries will always enjoy lower prices of a commodity produced locally over that of the importers. Exporting NG will reduce our trade deficit and energy dependence on other countries because higher prices will spur production here including the oil found with NG.
Increased NG usage/demand worldwide will improve the technologies associated with its use, lower costs, and improved the stability of our economy.
Producing countries will always enjoy lower prices of a commodity produced locally over that of the importers.
Absolutely correct - just ask OPEC ;-)
The current large disparity - $15 per mcf in EU and Asia vs. $2 here prove it. (And that is our price, not our production cost).
Chesapeake Energy (CHK) hit a 52-week low today on some CEO loan nonsense, it’s a good company that’s now even more underpriced. I bought more.
Well said!
Probably a good move on your part.
bttt
Theoretically, but who is going to invest in the equipment needed to alter a vehicle, much less a fleet of them, to utilize a cheap commodity that the Government is trying to regulate out of existence?
Especially when they're screwing with the tax codes and depreciation/deduction amortization curves daily?
Thanks. Liberals have blind faith in the damned Federal Government. They must be blind, because the financial record of the Federal Government is truly damned.
So, when all else fails, I like to hit ‘em between the eyes with a 20 pound sledgehammer.
Here is some thought candy for y’all:
A dictator, such as Obama, only has the power that the people give him.
Currently, at least 40 % of American voters are gladly willing to give Obama the necessary power to continue his dictatorship.
Dictator Obama has designed Obama”care” to become active only AFTER he is re-elected, thus enabling THE NINE SUPREMES to delay ruling on the Constitutionality of the dictate of the individual mandate until Obama is once again the Illegal Foreign White House Occupier, (IFWHO).
The purpose of Dictator Baby-Doc Barack is simple: 1.) Regulate; 2.) Control; and 3.) Destroy. By his own count he as achieved 60 % of his goals, according to the note he says he carries in his pocket.
Obama’s obvious deep hatred of America could have only come from his childhood.
Since there are no known networks of childhood friends from Obama’s past, Obama was probably a member of a Marxist sleeper cell funded by wealthy men with a Marxist view of the World.
The lack of credible evidence that has NOT been forged requires a long-term, highly skilled and well-funded support group.
Who the key members of Obama’s probable support group and probable sleeper cell were and are is well known to the CIA and the FBI.
Will the “Citizen Journalists” such as Breitbart Editor Joel Pollack be able to out-spy these two tax-funded spy entities?
BTW, forget about the LAM, (Liberal Agenda Media), as they are saving their notes to write their tell-all Obama books after Obama has SAFELY retired back home in Kenya.
BTW, BTW, to all the doubters of the above speculation: what does your gut tell you?
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