Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Save the Ukraine By Exporting Natural Gas
RCM ^ | 03/04/2014 | Diana Furchtgott-Roth

Posted on 03/04/2014 7:05:50 AM PST by SeekAndFind

A prescient House Energy and Commerce Committee report released last month, just in time for Russia's invasion of Ukraine, suggested that "by becoming a natural gas exporter, the U.S. can supplant the influence of other exporters like Russia and Iran while strengthening ties with our allies and trading partners around the world."

President Obama does not want to use military force to counteract Russia. His 2015 Budget, due out this week, will shrink the military still further. But he has another weapon at his disposal, liquid natural gas exports.

Congress and the president should without delay pass laws to make it easier to export liquid natural gas. Such laws would help our allies and hit Russia where it hurts, in the pocketbook.

More than half of Ukraine's natural gas, and 30 percent of Europe's natural gas, is provided by Russia. Russia gets about half of its revenue from oil and gas. LNG is cheaper in the United States than in Russia, so increasing America's exports of LNG would lower Russia's profits.

Last fall, in a forum hosted on Capitol Hill, Zygimantas Pavilionis, Lithuanian Ambassador to the United States and Mexico, said, "An ability to import natural gas from the U.S., even very small amounts by U.S. standards, would make a huge impact on the Lithuanian gas market and allow the nation to develop a reliable alternative to Russian gas."

And according to Jaroslav Zajicek, the Czech Republic's Deputy Chief of Mission, "We have already seen examples where the Russian negotiating position during contract-renewal talks was weakened thanks to decreasing prices on the markets in Western Europe."

This week natural gas for April delivery was trading at about $4.50 per million British thermal units, compared to about $11 per million BTUs in Europe.

(Excerpt) Read more at realclearmarkets.com ...


TOPICS: Business/Economy; Foreign Affairs; News/Current Events; Russia
KEYWORDS: energy; export; lng; naturalgas; russia; ukraine

1 posted on 03/04/2014 7:05:50 AM PST by SeekAndFind
[ Post Reply | Private Reply | View Replies]

To: SeekAndFind

Zero could ruin Putin’s day and probably the rest of his rule by issuing the permits for the LNG facility at Cove Point along with the one for the facility on the Gulf of Mexico.


2 posted on 03/04/2014 7:10:06 AM PST by meatloaf (Impeach Obama. That's my New Year's resolution.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

So if Russia invades Ukraine, we sell them cheap LNG as punishment?


3 posted on 03/04/2014 7:10:16 AM PST by DBrow
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

http://www.dnaindia.com/world/report-iran-willing-to-export-natural-gas-to-ukraine-1875772


4 posted on 03/04/2014 7:10:39 AM PST by Sacajaweau
[ Post Reply | Private Reply | To 1 | View Replies]

To: meatloaf
Zero could ruin Putin’s day and probably the rest of his rule by issuing the permits for the LNG facility at Cove Point

Let's not forget what happened ....

5 posted on 03/04/2014 7:12:15 AM PST by SeekAndFind
[ Post Reply | Private Reply | To 2 | View Replies]

To: SeekAndFind

IIRC didn’t Reagan do something like this to depress oil prices to the point of almost bankrupting the former USSR.


6 posted on 03/04/2014 7:12:37 AM PST by cork (Gun control = hitting what you aim at)
[ Post Reply | Private Reply | To 1 | View Replies]

To: DBrow

RE: So if Russia invades Ukraine, we sell them cheap LNG as punishment?

I think the idea is to help Ukraine tide through the winter if Russia cuts of their natural gas supply ( Ukraine has barely 4 months of natural gas stocks left ).


7 posted on 03/04/2014 7:13:21 AM PST by SeekAndFind
[ Post Reply | Private Reply | To 3 | View Replies]

To: meatloaf
by issuing the permits for the LNG facility at Cove Point along with the one for the facility on the Gulf of Mexico.

How about all 37 pending permits?

https://www.ferc.gov/industries/gas/indus-act/lng/lng-proposed-potential-export.pdf

8 posted on 03/04/2014 7:13:46 AM PST by thackney (life is fragile, handle with prayer)
[ Post Reply | Private Reply | To 2 | View Replies]

To: SeekAndFind
Ukraine has barely 4 months of natural gas stocks left ).

It would take us a lot longer than 4 months to build export terminals.

9 posted on 03/04/2014 7:15:01 AM PST by thackney (life is fragile, handle with prayer)
[ Post Reply | Private Reply | To 7 | View Replies]

To: SeekAndFind
Some idea of schedule for these projects. From the one that did receive FERC approval.

Sabine Liquefaction Project Schedule
July 26, 2010 - Submitted NEPA Pre-Filing Request
August 4, 2010 - FERC Approval to use Pre-Filing Process
January 31, 2011 - File NGA Section 3 Application
December 28, 2011 - Issuance of Environmental Assessment / Environmental Impact Statement
January 31, 2012 - File Initial Implementation Plan
April 16, 2012 - Issuance of Authorization
3rd Q - 2012 - Commence Construction
4Q 2015* - Liquefaction Project In-Service

http://www.cheniere.com/sabine_liquefaction/project_schedule.shtml

http://www.cheniere.com/sabine_liquefaction/liquefaction_project.shtml


10 posted on 03/04/2014 7:20:29 AM PST by thackney (life is fragile, handle with prayer)
[ Post Reply | Private Reply | To 7 | View Replies]

To: thackney

That works for me. Thanks again!


11 posted on 03/04/2014 7:22:11 AM PST by meatloaf (Impeach Obama. That's my New Year's resolution.)
[ Post Reply | Private Reply | To 8 | View Replies]

To: SeekAndFind

Personally I couldn’t care less about the Ukraine or Russia but I’m all for profiting from our natural gas.


12 posted on 03/04/2014 7:26:41 AM PST by cripplecreek (REMEMBER THE RIVER RAISIN!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SeekAndFind

Can we get tankers to them in any reasonable time? And what about the customers served by the existing tankers- what do they do?

I don’t know much about LNG tankers, how would we get one to say Odessa- gotta go down the Med then through Istanbul to the Black Sea?


13 posted on 03/04/2014 7:30:52 AM PST by DBrow
[ Post Reply | Private Reply | To 7 | View Replies]

To: DBrow

The last thing Russia wants is our natural gas reaching Europe. That destroys their ability to manipulate pricing to their advantage. LNG from the United States would not only eliminate any chance of Russia modernizing their military, it would also screw Iran to the wall and the other terrorism sponsors including Saudi Arabia.


14 posted on 03/04/2014 7:32:21 AM PST by meatloaf (Impeach Obama. That's my New Year's resolution.)
[ Post Reply | Private Reply | To 3 | View Replies]

To: SeekAndFind

There is no LNG conversion facility in Ukraine. The closest may be the one in Turkey on the Bosporus. There is a pipeline in the vicinity that brings Russian gas in from Ukraine. That could be reversed to transport gas to Ukraine.


15 posted on 03/04/2014 7:34:49 AM PST by meatloaf (Impeach Obama. That's my New Year's resolution.)
[ Post Reply | Private Reply | To 7 | View Replies]

To: DBrow

Ukraine does not have an LNG conversion facility.


16 posted on 03/04/2014 7:36:36 AM PST by meatloaf (Impeach Obama. That's my New Year's resolution.)
[ Post Reply | Private Reply | To 13 | View Replies]

To: SeekAndFind

Allow individual US citizens, who own the gas, sell it to the buyer’s of their choice? That comes real close to being a free country.

Too bad it takes government action to undo previous government action that implemented the idiotic restrictions to start with. In this country the recent fracking boom has occered on private property. Which means this is not “our” gas or that “we” should allow it be exported. It belongs to private individual citizens who should be free to sell it as they see fit.


17 posted on 03/04/2014 7:39:53 AM PST by FreedomNotSafety
[ Post Reply | Private Reply | To 1 | View Replies]

To: meatloaf; DBrow
Ukraine does not have an LNG conversion facility.

Nor do we have the existing LNG export capacity. It would take years to build both.

18 posted on 03/04/2014 7:42:48 AM PST by thackney (life is fragile, handle with prayer)
[ Post Reply | Private Reply | To 16 | View Replies]

To: cripplecreek

” - - - White House is announcing an aid package to Ukraine of $1 billion - - - “

FINALLY! A highly successful backward solution to all known problems comes out of the Nobel Peace Prize winning White House!

“What is that?, “ You may ask? The answer, of course, is unlimited amounts of unfunded US Taxpayer Debt Dollars!

Yup! Works every time, and faster than you can can say “IcandoanythingIwantbyjustbyoassingCongress.” Nobel Laurette Soetoro-Obama just says: “Charge it to the next generation, please! Whoopee! My work here is done! Golf anyone?”

Secretary of Statements John “Cachup” Kerry will ride in, start writing rubber checks, and the ensuing bright rosy glow will spread around the World. Well, maybe not onto “the Arab Street.”

Although the always weak, Obamanation Foreign Policy is well on the way to its usual backward success, there are still a few topics that have yet to be resolved, as follows:

* Were is the Internet Video that caused the Ukrainians to force their beloved President to take the entire Ukrainian Treasury with him when he fled the country?

* Will “Catchup” Kerry enlist the help of famed video detective Susan Rice to help him track down and jail the perp. who made this awful, obscure, unknown video, that the United States had nothing to do with?

* Will the US Department of Statements spend more unfunded US Taxpayer Debt Dollars for the Ukranian Denial Ad than they did for the 2012 Benghazi Denial Ad?

* Note: Kerry must excel here because due to the obvious cruel onslaught of the aging process on Mrs. Bill Clinton, “Catchup” Kerry may be duty-bound to replace her as the obvious Democrat frontrunner in the 2016 Presidential race.

* Since POS Soetoro-Obama hit the famous RESET BUTTON on Russia, the NASA Space Program has had to be “dependent on the kindness of strangers” from Russia. Hopefully, our astronauts will be able to borrow food and vodka from the Russians while they wait for “Catchup” Kerry to resolve this Ukrainian “investment.”

* Will buddy Vlad Putin be as flexible with the Renowned Obamanation Foreign Policy as Soetoro-Obama was with Putin?

* Rumor has it that Vlad Putin has his eye on being awarded the Nobel Peace Prize for his defusing of the Syrian “Red Line” Crisis.

* Another rumor is that Putin could win the Nobel Peace Prize if he sold all of Russia’s US Treasury Notes, requested that the USA be dropped from the G9, and appointed Snowden to be the Russian Ambassador to the United States of America.


19 posted on 03/04/2014 7:44:26 AM PST by Graewoulf (Democrats' Obamacare Socialist Health Insur. Tax violates U.S. Constitution AND Anti-Trust Law.)
[ Post Reply | Private Reply | To 12 | View Replies]

To: FreedomNotSafety

BTTT


20 posted on 03/04/2014 7:44:46 AM PST by thackney (life is fragile, handle with prayer)
[ Post Reply | Private Reply | To 17 | View Replies]

To: thackney

Correct. However allowing that capacity to be built would alter the balance of power in the world in our favor.


21 posted on 03/04/2014 7:47:41 AM PST by meatloaf (Impeach Obama. That's my New Year's resolution.)
[ Post Reply | Private Reply | To 18 | View Replies]

To: meatloaf

The facilities should be built.

It won’t make any difference for the Ukraine.


22 posted on 03/04/2014 7:48:46 AM PST by thackney (life is fragile, handle with prayer)
[ Post Reply | Private Reply | To 21 | View Replies]

To: DBrow

Gas goes through a process to transport it on tankers. You need major facilities on both ends to get ‘er done. Nobody has built them because it’s big bucks to do and the Russians have bought influence.


23 posted on 03/04/2014 7:49:45 AM PST by lodi90
[ Post Reply | Private Reply | To 13 | View Replies]

To: thackney

I hope it makes a difference for many in the long term. Despots will find it harder to use energy to extort nations.


24 posted on 03/04/2014 8:32:28 AM PST by meatloaf (Impeach Obama. That's my New Year's resolution.)
[ Post Reply | Private Reply | To 22 | View Replies]

To: SeekAndFind

Developing our energy resources won’t help. It will take at least 10 years before we see any product. (10 years ago).


25 posted on 03/04/2014 8:55:39 AM PST by faucetman ( Just the facts, ma'am, Just the facts)
[ Post Reply | Private Reply | To 1 | View Replies]

To: cripplecreek

I, like you, could give a damn about the Ukraine. However, I do not feel we should be selling our NG. Over the last few years with the shut down of coal power plants there has been an enormous rush to build NG power plants. These plants use such huge amounts of NG that we are going to eventually end up short supply here.

NG should be thought of first as a economical way to heat our homes, a priority I consider over giving it to the Ukraine.

We should be actively pursuing bringing online new generational nuclear power plants, expanding CNG transportation engines such as autos, trains and trucks. (aka Pickens Plan) Slowly declining use of oil for transportation will offset its production depletions.

Net result is we have generations of economical electricity(nuke),heating (NG),transportation fuel(NG and oil. A true energy independent country. It can be done but not if we sell NG and oil overseas.


26 posted on 03/04/2014 9:17:50 AM PST by biff (WAS)
[ Post Reply | Private Reply | To 12 | View Replies]

To: biff

What I would do is repower some of the 800+ dams east of the Mississippi that the DOE listed as cost effective electricity producers if brought back online or retrofitted with modern generators.

Then the gas could be used for heat, electricity and for sale.


27 posted on 03/04/2014 9:25:57 AM PST by cripplecreek (REMEMBER THE RIVER RAISIN!)
[ Post Reply | Private Reply | To 26 | View Replies]

To: cripplecreek

+ on the damns and everything else, hell, put those coal plants back online.

All the hyperbole about horizontal drilling and fracking of new wells is not all the truth. Yes, it is fantastic and what the awl field hands have done is nothing less that fantastic. It does result in high production rates per well. But those rates decline much faster than originally thought and projections for future production reserves may need a newer estimation. What I am saying is production will eventually decline faster than we can drill new wells, once again placing us in a less dominate position.

So that is why I say the hell with selling it overseas, keep it here for us. If nothing else than to keep a moderately priced method of residential and commercial heating. Otherwise we will be like those in the northeastern US that pay $1500.00/month to heat their houses with heating oil. I kinda like my $80.00 NG heating bill last month here in west Texas.


28 posted on 03/04/2014 9:42:42 AM PST by biff (WAS)
[ Post Reply | Private Reply | To 27 | View Replies]

To: biff

What do you invest your time and money into producing that the rest of us should determine to whom you are allowed to sell?


29 posted on 03/04/2014 9:57:44 AM PST by thackney (life is fragile, handle with prayer)
[ Post Reply | Private Reply | To 26 | View Replies]

To: thackney

Sheese, thack, I am just saying we can use the stuff here instead of being the great savior of Europe and the Ukraine.

That and the fact I don’t want a grand a month heating bill.


30 posted on 03/04/2014 10:40:41 AM PST by biff (WAS)
[ Post Reply | Private Reply | To 29 | View Replies]

To: biff

Think you can limit the demand and bring the price down while pretending the supply curve of economics doesn’t mean anything is foolish.

You could ban the export of wheat. Wheat will be cheap this year, as long as you do it after planting season.

What do you think will happen to wheat and the price for it the second year?


31 posted on 03/04/2014 10:43:42 AM PST by thackney (life is fragile, handle with prayer)
[ Post Reply | Private Reply | To 30 | View Replies]

To: SeekAndFind

Great idea! That would make investors very happy, too.


32 posted on 03/04/2014 10:54:18 AM PST by familyop (We Baby Boomers are croaking in an avalanche of corruption smelled around the planet.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: thackney

We aren’t even in the same ball park in this discussion.

I certainly don’t know everything about it but I can tell you this, my experiences and my families experiences in the oil and gas industry goes all the way back to the mid 30’s. My father used to make a grand a month retipping rock bits in the 30’s, enough to buy a new car every month, an enormous amount of money back then.

The oil bunch have never, ever been forward thinking nor has this country ever had a national energy policy. It has come a time we as an industry and country think about the future. Taking the typical 20th century attitude of “the hell with it we will drill more wells tomorrow if we need it” will no longer work because there are fewer and fewer places to drill that have “the stuff”.

I am not saying we should try to manipulate the supply and demand curves but I am saying we should think of ourselves and the countries future first and use what assests we have prudently.

So, do you fit into the typical baby boomer attitude of “screw it, I’ll save money for retirement tomorrow?” Or are you gonna save today for tomorrow?

Of course, we could just give it all to Obamma and the Ketchup man and let them give it away.


33 posted on 03/04/2014 11:04:27 AM PST by biff (WAS)
[ Post Reply | Private Reply | To 31 | View Replies]

To: biff

Where there’s enough need and will to study and work, there are ways out of the high costs. The needs, studies and willingness to work are increasing with the economic decline and feeding frenzy.

Powerful and very low cost for most areas.

$2K Solar Space + Water Heating — One Simple DIY System
http://www.builditsolar.com/Projects/SpaceHeating/DHWplusSpace/Main.htm

Stealthy and very low cost without requiring much wood.

rocket stove mass heater
http://www.richsoil.com/rocket-stove-mass-heater.jsp

Some men are working on developing related and low cost stoves with mass and masonry heaters for those who need to pass inspections.

There are many modifications for the above and many more kinds of projects in the works. Sometimes, we should acknowledge a negative and ongoing political and economic reality and choose to adapt and overcome. As for regulations, there are always ways to abide by them or slip right around them and build.


34 posted on 03/04/2014 11:04:52 AM PST by familyop (We Baby Boomers are croaking in an avalanche of corruption smelled around the planet.)
[ Post Reply | Private Reply | To 30 | View Replies]

To: biff

BTW, in some locales, nearly every bureaucrat and public employee is invested in every local energy company. For example, when propane prices go up, electricity prices follow. Those investments come mostly from debt, fee and tax hikes (the “feeding frenzy”) because of runaway increases in spending. Something to think about. Things have changed. The recent propane hike should have been a loud enough signal (exports, drying of ethanol crops, etc.).

Reacting with arguments does no good. Politicians are in the pockets of the few most influential constituents. The answer is to plan, design and build. Keep doing so. Anyone willing to do real work is capable.


35 posted on 03/04/2014 11:10:31 AM PST by familyop (We Baby Boomers are croaking in an avalanche of corruption smelled around the planet.)
[ Post Reply | Private Reply | To 33 | View Replies]

To: thackney; biff
"What do you think will happen to wheat and the price for it the second year?"

Not only that, biff, but wheat would be stored and sold later to get higher prices. There's a prophecy about a punishment for that (Tanach, commentary). Find ways to ride it out. Find the work of others (searches). Plan, design, build.


36 posted on 03/04/2014 11:20:18 AM PST by familyop (We Baby Boomers are croaking in an avalanche of corruption smelled around the planet.)
[ Post Reply | Private Reply | To 31 | View Replies]

To: biff
I am saying we should think of ourselves and the countries future first and use what assests we have prudently.

I do not understand why you think a mineral owners assets are yours to determine what to do with?

So, do you fit into the typical baby boomer attitude of “screw it, I’ll save money for retirement tomorrow?” Or are you gonna save today for tomorrow?

You are making a false comparison. I want the jobs and the supply that come from a market that can handle booms with more than a bust in prices, destroying the supply for years to come.

I saw what the effect of the West Coast Oil Glut was in the 80s. When the price for Alaskan oil coming down to the West Coast was $3 a barrel, that market died. They didn't shut down the pipeline but they sure as heck quit investing in any more production for a long time.

Alaska North Slope First Purchase Price
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=F005071__3&f=M

Maybe you are unaware of how the Natural Gas Drilling has already greatly tapered off.

Maybe you are hopeful the associated gas from oil production will magically meet the supply. But the reality is that is a relatively small supply.

Now drilling in the shale gas fields has been very productive.

But these are not the traditional wells of old that flow near initial rates for decades. They fall fast.

We are not going to stay significantly below the market value less the cost of transportation. That thought is foolish. Investors will not continue to invest in US Gas production. It is why we have already had such a large move away from Natural Gas drilling.

37 posted on 03/04/2014 11:26:50 AM PST by thackney (life is fragile, handle with prayer)
[ Post Reply | Private Reply | To 33 | View Replies]

To: thackney

DAMMIT THACKNEY, I AM TIRED OF YOU PUTTING WORDS IN MY MOUTH!!!

You own it you can do what you damn well please with it.

I am just saying the oil industry and this country is stupid, always has been when it comes to it and this countries future. They have never been and will always be that way.

Yes of course rig counts for gas is down. What do you expect with and excess? An increase?

The oil business is just like that commercial, “I want it now.”

You got a plan, lets hear it or did you co-star in Tremors?


38 posted on 03/04/2014 11:38:58 AM PST by biff (WAS)
[ Post Reply | Private Reply | To 37 | View Replies]

To: biff
I AM TIRED OF YOU PUTTING WORDS IN MY MOUTH!!!

Then I don't understand what you suggested in the first place.

You said:

However, I do not feel we should be selling our NG.

Who is "we" and what is "ours"?

39 posted on 03/04/2014 11:50:56 AM PST by thackney (life is fragile, handle with prayer)
[ Post Reply | Private Reply | To 38 | View Replies]

To: biff
You got a plan, lets hear it

We should proceed with allowing LNG to be sold overseas. Just as we allow plastics, feedstocks, etc to be sold.

We already tax the production, the jobs, the infrastruture, go ahead and put a tax on the exports, but do not ban it.

40 posted on 03/04/2014 11:53:36 AM PST by thackney (life is fragile, handle with prayer)
[ Post Reply | Private Reply | To 38 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson