Exporting gas will cause the price to rise in America, our gas is MUCH cheaper than in Europe or Asia because of the export ban.
This will result in higher home heating bills and electricity bills as well as hurt energy intensive American industries’ competitiveness. That’s not something I think we need right now. Especially, considering that the economics of using LNG exports to hurt Russia doesn’t make sense.
This is being pushed for by parties who stand to reap a financial windfall.
I’m going to say that this could backfire disastrously in the political arena if the domestic price rises enough. The American people are in no mood to freeze in the dark for the purpose of geopolitical chess playing, let alone to make energy companies richer. It’s a big risk for Republicans to be associated with promoting this idea.
Something like that could help usher in president Elizabeth Warren.
You’re exactly right. The combination of high energy prices and a declining U.S. dollar is going to result in a scenario where more and more Americans will find their own energy unaffordable.
Very little rise in US pricing and it is arguable they won’t continue to rise anyways.
Believing the demand curve of economics will rule without limits while pretending the supply curve doesn’t exist is foolish.
LNG EXPORTS: HOW MUCH WILL THEY IMPACT U.S. NATURAL GAS PRICES?
http://accf.org/wp-content/uploads/2013/11/ACCF_LNG_Price_Impact_11.06.13_d3.pdf
The NG market in America is unstable at present, because the economics of fracking haven’t really stabilized so that the producers actually know what their production will be over the life cycle of a well.The American people are in no mood to freeze in the dark for the purpose of geopolitical chess playingBut what we do think we know is that there is a LOT of gas down there, so we can produce a lot of it for a long time. Meaning that the supply curve, which you are assuming is a constant, actually has a steep upward slope with increasing price.
The Arabs had an embargo back in ’73, but since then even OPEC doesn’t embargo exports. Because what economic sense is there in driving up the price, if you don’t actually sell any product at that price?? So here we are, embargoing our friends to help Russia get maximum advantage over them from its supply of NG!
Drilling on private land is the only part of the economy Obama hasn’t killed, and the embargo on exporting fuel to our friends is costing our economy. It’s too expensive; we can’t afford it.It is the Democrats who are engaged in “geopolitical chess playing” with their embargo - and they're on the wrong side.