Skip to comments.Dangerous Price Manipulation Rocks Energy Markets (Natural Gas)
Posted on 05/18/2013 5:46:53 PM PDT by haffast
A new investigation released by Wall Street Daily just revealed a disturbing pattern of price manipulation in the energy markets.
The six-month investigation, conducted by renowned energy analyst, Karim Rahemtulla, was triggered by the incredible disparity in gas prices between the United States and Europe.
The price of natural gas in the United States is presently about $4/mcf.
Yet the price in Europe is upwards of $15/mcf.
Such mispricing simply cannot occur in an efficient market, says Rahemtulla.
For the global economy to function properly, the energy markets must be priced efficiently. It can be no other way. Any malfeasance can have catastrophic consequences on the global economy. Especially considering the precarious financial positions many world nations find themselves in.
Despite such a reality, though, Rahemtulla discovered insurmountable evidence that natural gas kingpin, Russia, has been artificially manipulating prices.
It amounts to extortion, according to Rahemtulla.
You see, Russia controls an enormous share of the natural gas market in Europe.
But thanks to the banking collapse in Cyprus, the energy situation in Europe is now likely to stabilize, without any rioting in the streets.
"Cyprus, in fact, now lies at the center of the energy world," says Rahemtulla.
(Excerpt) Read more at wallstreetdaily.com ...
Russia/China/Turkey get this gas, or the EU?
The reason for Syria (and later Lebanon)?
But the market is not efficient (luckily for us) because we produce a lot of natural gas and have almost no export capability. Even if they wanted to, the Europeans can't buy our gas to compete with Russian gas.
UK to Get LNG From Texas Under Exxon Deal
May 10th, 2013
Under New Approval, More Natural Gas Will Be Sent Abroad From Texas
May 17, 2013 | 1:10 PM
I thought we did have the capability. Or is it that the infrastructure is just not yet in place?
More are getting approval but they still take years, billions of dollars and special government approval for export to build.
I think LNG tankers are fairly efficient.
The situation may have changed in the last 30 years, but New England used to get a lot of their natural gas by LNG tanker from North Africa.
Once while I was there they almost ran out due to a combination of exceptionally cold weather increasing consumption and a storm delaying a tanker.
Russia Raises Stakes in Syria
The Wall Street JournalBy Adam Entous | The Wall Street Journal Thu, May 16, 2013 11:07 PM EDT
Delivering the S-300 missles sold to Syria?
Protecting their base at Tartus?
Protecting their natural gas business?
--and appears to be able to charge what the "market" is willing to pay-------
every country has massive amounts of natural gas coming out of their politicians.. just modify a bovine methane collector .. and waaalaaa.. an endless untapped source of energy .. maybe not as green as some might wish.. butt...
While the Euros are talking CO2 restrictions, they’re importing high sulfur residual oil to fire their power plants. The $15 MM provides an opportunity for US oil to move to the Med, Singapore, Japan...
Lets see - we here in the US are drilling our own.... I can’t imagine why it would be less expensive when we do that....
I am curious why we are pushing CNG here, instead of LNG... But I know very little about LNG, other than I have heard repeatedly that LNG is far more efficient and logical for transportation (LNG vs. CNG stations for example).
What am I missing (not to hijack this thread).
yep... this entire war in Syria now makes perfect sense.
And, the US is not involved because.... ????
Well, third world EU could just switch to its own natural gas .... but wait, solar panels and wind turbine only generate non-measurable amounts of natural gas.
Exactly. Putin knows that oil and gas are about all that Russia and his cronies can make money out of. I like how the Russia is called a cartel, while OPEC is not.
Well, the Russkies manipulated Bulgaria’s last election to back a green candidate who banned fracture stimulation thus killing the prospect for a domestic natural gas supply.
The Russkies want it all for themselves.
Analysis - No good military options for U.S. in Syria
Reuters ^ | 4-27-2013 | Phil Stewart and Peter Apps
U.S. training Syrian opposition forces at secret location in Jordan, officials say
Associated Press ^ | 25 March 2013 06:11 PM | AP
Hagel: US sending Army planners to Jordan
Associated Press ^ | April 17, 2013 | LOLITA C. BALDOR and DONNA CASSATA
U.S. brushes off Iran-Iraq-Syria gas line
Nov. 20, 2012 at 7:26 AM
War-Gaming the Mullahs in 2004
Officials say Kerry to announce $100M in new Syria humanitarian aid - ($510M in two years)
Associated Press ^ | Updated: Wednesday, May 8, 11:45 AM | Lee reported from Washington
Arms Airlift to Syria Rebels Expands, With C.I.A. Aid
New York Times ^ | March 24, 2013 | C. J. CHIVERS and ERIC SCHMITT
“Peace and Security”
It is not “manipulation”, it is “Russia has it, and everybody else wants it”.
LNG is very costly to produce, store and transport, for it to remain in it’s liquid state involves cryogenics. To get it to it’s liquid state and keep it there throughout the process involves getting it down to -260 F. Natural gad doesn’t just go from the well to your house it’s first stripped of all liguids then broken down from it’s different components (pentane, ethane, propane, helium) to the point it’s mostly methane. then it goes into the pipeline to your house.
LNG requires further processing such as cryogenics to get it into it’s liquid state and keeping it there. While some trucks and ocean going tankers are designed for this it’s limited.
Only logical if a pipleline is out of the question such as sea travel.
Well, actually it can, in fact they can vary from $3.84 to $95.60 just inside the US. Here are the current US natrual gas (mis)prices:
The thing is that Karim Rahemtulla (also spelt Karim Rahemtullah) is not only our "renowned energy analyst" (according to him) but also our "bestselling author" and "one of the country's foremost resource and developing world analysts" (also according to him). He was educated lots of places but nobody knows where or if he ever graduated --but what we do know is that he's sure an expert on how to impress others with how wonderful he is.
So... I guess you’re saying, I’m a little late to the party?
Ok.. yea, I guess I am. Admittedly, I have not been following events in Syria.. mainly, because I just didn’t care much, or see reason to care about whether Assad survived or not.
But, after spending a few minutes really studying the MAP.. of Syria, and the gas fields.... my interest is growing.
This is exactly the kind of scenario where we are really ill-served by having a President who votes, “present”. We need, decisive leadership... to protect our long term interest.
Thanks for the links... FR remains the BEST place in the world to learn.
No way ALL of those places get turned into export terminals. It’s VERY expensive to convert an import terminal to an export terminal.
It takes time.. and, a LOT of money.
I’m sure a few will be built.. but, I doubt the number will be all that high. Political pressure AGAINST exporting LNG will build.
CNG is just “Compressed Natural Gas”.. that’s fine for moving things around, here... locally.
But, if you want to ship overseas, you really want LNG, “Liquified Nat Gas”
The advantage is, the ability to move a WHOLE LOT MORE molecules with each shipment. It cost more to liquifiy it... but, if you have to ship overseas, it’s worth it.
Thanks haffast, and imo you’re spot on about Russia in Syria.
The Russians were as taken by surprise as anyone at the rapidity at which Syria disintegrated, particularly after they and Iran made rapid moves to resupply Assad and to encourage him to keep cracking down. The jihadists moved just as quickly.
The US is and has been involved, just has no boots on the ground. The US should have been *more* involved, right away, to build a more secular alternative to the jihadists. It’s possible, however, that the recent establishment of US training camps in Jordan and Turkey will turn out to be one of those nick of time things, since Syria’s press-gangs of ruthless armed thugs trained by Iranian thugs and armed with Russia weapons have suddenly been gaining ground against the previously successful jihadist outfits; this will buy time and help marginalize the jihadists.
Hizbollah participation in support of Syria undermined them; Hamas’ abandonment of Assad undermined them; there’s been a precipitous break in the recent-years effusive relations between Turkey and Iran; the Turkish Islamofascist regime mismanaged itself into a corner, and it won’t be getting out of it any time soon; Russia backs Cyprus and Israel against Turkey about those offshore fields; Greece and Israel were driven together by Erdogan’s idiotic policies; Turkey’s best case scenario will be to support Kurdish independence, but I doubt that they’ll take it.
The longer the civil war goes on, the more likely Syria will wind up like Lebanon (Lebanon was shredded by the PLO, Iranians, and Syrians). The Assad regime has of late seen some daylight, and been able to take the initiative for the first time in over a year.
OPEC is always called a cartel, perhaps not by the “renowned” author of the piece.
Thanks for the ping.
That is the info I was looking for.
There was a thread here on FR a couple years back that debated the value of CNG as an automobile fuel. There was a poster at the time that ranted on about how CNG was ignorant as a motor vehicle fuel - and that if natural gas was to be used for that purpose, it would be MUCH better to use LNG... Must have been one of those “I know more than you” types. I haven’t been able to find the thread.
Thanks for the clarification. I suspected it had to do with serious cooling to keep it liquid.
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