Skip to comments.Gasoline: 70% off
Posted on 03/08/2012 5:52:13 AM PST by Josh Painter
Six years ago, the New York Times profiled Charif Souki, the chairman of the Cheniere Energy company, which was building a nationwide network of natural gas import terminals. North American production of natural gas was declining, and Souki hoped to cash in on increased natural gas imports.
Now, just a few years later, the price of natural gas has collapsed, largely due to an enormous increase in American supplies made possible by new discoveries and technologies. In January the Times ran another story on Mr. Souki. It was headlined, "U.S. Company, in Reversal, Wants to Export Natural Gas." His Cheniere Energy is now planning to spend at least $10 billion to convert its import terminals into export terminals.
Cheniere's story highlights the incredible shift in the natural gas industry over the past decade.
Several weeks ago in this newsletter, I suggested $2.50 should be an attainable price for a gallon of gasoline with an aggressive American energy policy which, among other things, greatly expands drilling permits for federal lands. $2.50 would be about a one-third decline in price from Monday's national average of $3.77 per gallon.
The Left and their allies in the mediawho would sooner see prices rise to $8 a gallon than make pickup trucks and SUVs affordable to fill updefensively protested that $2.50 a gallon was "unrealistic," or even, in the words of David Axelrod, "magic fairy dust."
My suggestion to lower gasoline prices is based on exactly the same "magic fairy dust" that has caused the price of natural gas to decline 70 percent since 2008: supply and demand.
(Excerpt) Read more at content.eaglepub.com ...
Exactly. It's called speculation. The option traders that the left like to blame for high prices would cause a drop in prices. What's amazing is that Newt has to defend the concept of supply and demand against the lies of the left.
I would like to heat Newt speak in favor of natural gas as transportation fuel. That alone would cut a significant amount of “oil” consumption and result in greatly decreasing oil prices.
Basic supply and demand is an unfathomable concept to the collectivist mind.
So “Drill here, drill now” actually works. Imagine that.
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