“Propane is one of the wet gases that comes from natural gas wells. The more drilling and fracking the more propane produced. LNG is liquified natural gas. Most of the wet gases like propane, butanes, pentanes and ethane are stripped out of the natural gas and sold separately.
So the production of more natural gas means more propane is produced too. That means the price of propane should go down.”
Sounds great, but the price of my propane has gone from less than $2.00 to $3.50 in less than a year, without big time exports of natural gas.
Let’s keep our own energy resources here.
That’s one way to look at it. However, we’re not going to see a surplus of propane unless we encourage additional natural gas production to meet increased demand. That means propane pricing will remain sensitive to unusual sources of demand such as occurred this past year because of agricultural needs.
Exporting natural gas will not only cut into Russia’s income, it will also cut the cash flow to Middle Eastern countries like Iran. Less money there means less money rattling around to finance terrorism. Kicking both Russia and Iran, etc. in the nuts certainly is appealing. But don’t tell Obama. He wouldn’t want to screw up his buddies’ game plan for the world meaning death and deprivation for Americans.