Gassing Up
It's Been a "Good Week" for US LNG
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  • FriendlyGoat

    There are some positive aspects to exporting LNG. One of the aspects which may not be positive is the upward pressure it may exert on prices paid by American consumers and businesses for natural gas energy here.

    • Thirdsyphon

      Just so. Once the export infrastructure is in place, America’s price for LNG will sharply rise until it meets the global price for LNG, and our short-lived national holiday from rising energy costs will come to an end. The Administration is well aware of this, which is why it’s been dragging its feet on the approval process for these facilities.

      • FriendlyGoat

        The thing is, consumers love “gluts” of supply. Producers don’t. Why are we so willing to be ruled by the producers? Right-wing politics?

        One would think the community of BUSINESSES would be saying, “hold on, not so fast”—–so that one side of the right wing would be forced to listen to the other side of the right wing.

        • Boritz

          “…so that one side of the right wing would “be forced to listen to the other side of the right wing.”

          Here is how that conversation went.

          Capitalist1: Stop treating your profits like they are more important than my profits.
          Capitalist2: …………[breaking into smile] You had me going there!
          Capitalist1 and Capitalist2: HA Ha HA Ha HA Ha HA Ha HA Ha HA Ha!

          • FriendlyGoat

            Laugh if you want. You cannot revitalize manufacturing in America without relatively inexpensive gas.

        • Thirdsyphon

          I’d be willing to bet that there’s a lot of quiet support among traditionally Republican business groups that are benefiting from cheap energy, like the National Association of Manufacturers. You never read about it because their “support” is taking the form of not lobbying the government to complete LNG export projects. The business lobby in general has been pretty silent on this issue, but few people notice the dogs not barking, which is what they’re counting on to enable them to thread the political needle on this.

  • Duperray

    Finally, a good decision. I think that many in present administration were upset..! Don’t worry F.Goat, shall no LNG export be approved, US producers would reduce production, as they already did in some areas, otherwise their activity is no longer economically viable.

    • FriendlyGoat

      Define “economically viable”. Completely unprofitable? Or just not as much profit as producers would prefer.

      • Duperray

        “Economically viable” means that producer investments, operating costs, salaries and taxes be paid by revenues with 3-5% profit, otherwise it is either a loss or excessive profit: The latter automatically attracts competitors, new investment and price adjustment. True in theory but only 99% true in reality. Notable exception are Intel or Microsoft.

        • FriendlyGoat

          Perhaps we need to tie permission to export LNG to price levels for consumers—–including business consumers—in the USA.

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