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cwill
New Orleans Saints Fan
Member since Jan 2005
22828 posts

Natural Gas v. Energy Independence v. Free Markets v. Domestic Jobs


Quite the conundrum:

quote:

Manufacturers terrified that rising natural gas prices threaten their bottom lines are stepping up pressure on the Obama administration to limit exports of the fossil fuel in the wake of a study that said selling more overseas would broadly benefit the United States.

The government-backed report released Wednesday will be a major factor as the Energy Department weighs whether to grant applications from 15 companies to export a total of 21.5 billion cubic feet of natural gas daily to countries that don’t have free trade agreements with the United States.

But chemical and manufacturing industry leaders insist if the Energy Department approves too many export licenses, natural gas prices would be pushed skyward, jeopardizing some $90 billion in planned capital spending.


LINK

Exports are also a real threat to the planned GTL plant in LC.

Let the export wars begin!







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GaryMyMan
USA Fan
Lower Garden District
Member since May 2007
10245 posts

re: Natural Gas v. Energy Independence v. Free Markets v. Domestic Jobs


quote:

Planned domestic manufacturing facilities were announced “with the assumption we would have available competitive and affordable natural gas,” Biltz said in an interview. “Our view is that too many exports would change that profile and would reduce the amount of investments that would be made.”


Yeah, because O&G prices have historically been SO stable.

Also, if you look at the chart at the bottom of the 103 new sites, most of that "$90 Billion Manufacturing Renaissance" comes from O&G producers who would benefit from higher gas prices. I think this article was written by Dow lobbyists.



This post was edited on 12/7 at 10:51 am


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TheHiddenFlask
Clemson Fan
The Welsh red light district
Member since Jul 2008
16611 posts

re: Natural Gas v. Energy Independence v. Free Markets v. Domestic Jobs


The economy needs a kick in the arse to get out of this liquidity trap that the Fed has dug us into. This would be a PHENOMENAL stimulus package for the country and it would actually generate revenue for the tax payer instead of pissing it away on algae gasoline and butterfly humping research.

Therefore, Liberals will try to block it.






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cwill
New Orleans Saints Fan
Member since Jan 2005
22828 posts

re: Natural Gas v. Energy Independence v. Free Markets v. Domestic Jobs


quote:

Therefore, Liberals will try to block it.


This issue is going to tie some conservatives in a knot, too....I don't think you appreciate all the competing factors.






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TheHiddenFlask
Clemson Fan
The Welsh red light district
Member since Jul 2008
16611 posts

re: Natural Gas v. Energy Independence v. Free Markets v. Domestic Jobs


FTR: I hate all main line political factions.

I just really hate the stranglehold that the left puts on one of our nation's greatest industries.






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thedogman
New Orleans Saints Fan
Member since Dec 2008
1432 posts

re: Natural Gas v. Energy Independence v. Free Markets v. Domestic Jobs


Please let this happen please let this happen.





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polizei11
LSU Fan
Lafayette
Member since May 2009
880 posts

re: Natural Gas v. Energy Independence v. Free Markets v. Domestic Jobs


I'm sorry but if a company expected sub $3 natural gas forever they deserve what they get. Natural gas that low is borderline uneconomic to produce.

They also need to wake up and understand that the US has the lowest natural gas prices in the world. Asia is in the $15-16 range while Europe is around $8. US companies can't be so stupid to think US producers would not try to tap into higher priced markets.






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Geaux Smoke
LSU Fan
Aspen, California
Member since Aug 2010
1977 posts

re: Natural Gas v. Energy Independence v. Free Markets v. Domestic Jobs


quote:

I'm sorry but if a company expected sub $3 natural gas forever they deserve what they get. Natural gas that low is borderline uneconomic to produce.

They also need to wake up and understand that the US has the lowest natural gas prices in the world. Asia is in the $15-16 range while Europe is around $8. US companies can't be so stupid to think US producers would not try to tap into higher priced markets

correct. the last plant we did (nat gas fired), i became friends w/ the CFO. his wife went to LSU w/ me. small world. they based their margins on nat gas @ $10.00 considering a worse case scenario. nat gas increasing some would not be a bad thing as it would be more economically feasible to drill and produce in a lot of areas.
ETA: this was a foreign company who built their first plant in the US. they have already committed funding to four other plants in the US w/ one already under construction. these plants range from 1.2 to 1.6 billion each. they produce raw material for fertilizers.



This post was edited on 12/7 at 2:46 pm


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