Save the Ukraine By Exporting Natural Gas

RCM ^ | 03/04/2014 | Diana Furchtgott-Roth

[meatloaf]

Correct. However allowing that capacity to be built would alter the balance of power in the world in our favor.

[thackney]

The facilities should be built.

It won’t make any difference for the Ukraine.

[lodi90]

Gas goes through a process to transport it on tankers. You need major facilities on both ends to get ‘er done. Nobody has built them because it’s big bucks to do and the Russians have bought influence.

[meatloaf]

I hope it makes a difference for many in the long term. Despots will find it harder to use energy to extort nations.

[faucetman]

Developing our energy resources won’t help. It will take at least 10 years before we see any product. (10 years ago).

[biff]

I, like you, could give a damn about the Ukraine. However, I do not feel we should be selling our NG. Over the last few years with the shut down of coal power plants there has been an enormous rush to build NG power plants. These plants use such huge amounts of NG that we are going to eventually end up short supply here.

NG should be thought of first as a economical way to heat our homes, a priority I consider over giving it to the Ukraine.

We should be actively pursuing bringing online new generational nuclear power plants, expanding CNG transportation engines such as autos, trains and trucks. (aka Pickens Plan) Slowly declining use of oil for transportation will offset its production depletions.

Net result is we have generations of economical electricity(nuke),heating (NG),transportation fuel(NG and oil. A true energy independent country. It can be done but not if we sell NG and oil overseas.

[cripplecreek]

What I would do is repower some of the 800+ dams east of the Mississippi that the DOE listed as cost effective electricity producers if brought back online or retrofitted with modern generators.

Then the gas could be used for heat, electricity and for sale.

[biff]

+ on the damns and everything else, hell, put those coal plants back online.

All the hyperbole about horizontal drilling and fracking of new wells is not all the truth. Yes, it is fantastic and what the awl field hands have done is nothing less that fantastic. It does result in high production rates per well. But those rates decline much faster than originally thought and projections for future production reserves may need a newer estimation. What I am saying is production will eventually decline faster than we can drill new wells, once again placing us in a less dominate position.

So that is why I say the hell with selling it overseas, keep it here for us. If nothing else than to keep a moderately priced method of residential and commercial heating. Otherwise we will be like those in the northeastern US that pay $1500.00/month to heat their houses with heating oil. I kinda like my $80.00 NG heating bill last month here in west Texas.

[thackney]

What do you invest your time and money into producing that the rest of us should determine to whom you are allowed to sell?

[biff]

Sheese, thack, I am just saying we can use the stuff here instead of being the great savior of Europe and the Ukraine.

That and the fact I don’t want a grand a month heating bill.

[thackney]

Think you can limit the demand and bring the price down while pretending the supply curve of economics doesn’t mean anything is foolish.

You could ban the export of wheat. Wheat will be cheap this year, as long as you do it after planting season.

What do you think will happen to wheat and the price for it the second year?

[familyop]

Great idea! That would make investors very happy, too.

[biff]

We aren’t even in the same ball park in this discussion.

I certainly don’t know everything about it but I can tell you this, my experiences and my families experiences in the oil and gas industry goes all the way back to the mid 30’s. My father used to make a grand a month retipping rock bits in the 30’s, enough to buy a new car every month, an enormous amount of money back then.

The oil bunch have never, ever been forward thinking nor has this country ever had a national energy policy. It has come a time we as an industry and country think about the future. Taking the typical 20th century attitude of “the hell with it we will drill more wells tomorrow if we need it” will no longer work because there are fewer and fewer places to drill that have “the stuff”.

I am not saying we should try to manipulate the supply and demand curves but I am saying we should think of ourselves and the countries future first and use what assests we have prudently.

So, do you fit into the typical baby boomer attitude of “screw it, I’ll save money for retirement tomorrow?” Or are you gonna save today for tomorrow?

Of course, we could just give it all to Obamma and the Ketchup man and let them give it away.

[familyop]

Where there’s enough need and will to study and work, there are ways out of the high costs. The needs, studies and willingness to work are increasing with the economic decline and feeding frenzy.

Powerful and very low cost for most areas.

$2K Solar Space + Water Heating — One Simple DIY System
http://www.builditsolar.com/Projects/SpaceHeating/DHWplusSpace/Main.htm

Stealthy and very low cost without requiring much wood.

rocket stove mass heater
http://www.richsoil.com/rocket-stove-mass-heater.jsp

Some men are working on developing related and low cost stoves with mass and masonry heaters for those who need to pass inspections.

There are many modifications for the above and many more kinds of projects in the works. Sometimes, we should acknowledge a negative and ongoing political and economic reality and choose to adapt and overcome. As for regulations, there are always ways to abide by them or slip right around them and build.

[familyop]

BTW, in some locales, nearly every bureaucrat and public employee is invested in every local energy company. For example, when propane prices go up, electricity prices follow. Those investments come mostly from debt, fee and tax hikes (the “feeding frenzy”) because of runaway increases in spending. Something to think about. Things have changed. The recent propane hike should have been a loud enough signal (exports, drying of ethanol crops, etc.).

Reacting with arguments does no good. Politicians are in the pockets of the few most influential constituents. The answer is to plan, design and build. Keep doing so. Anyone willing to do real work is capable.

[familyop]

"What do you think will happen to wheat and the price for it the second year?"

Not only that, biff, but wheat would be stored and sold later to get higher prices. There's a prophecy about a punishment for that (Tanach, commentary). Find ways to ride it out. Find the work of others (searches). Plan, design, build.

[thackney]

I am saying we should think of ourselves and the countries future first and use what assests we have prudently.

I do not understand why you think a mineral owners assets are yours to determine what to do with?

So, do you fit into the typical baby boomer attitude of “screw it, I’ll save money for retirement tomorrow?” Or are you gonna save today for tomorrow?

You are making a false comparison. I want the jobs and the supply that come from a market that can handle booms with more than a bust in prices, destroying the supply for years to come.

I saw what the effect of the West Coast Oil Glut was in the 80s. When the price for Alaskan oil coming down to the West Coast was $3 a barrel, that market died. They didn't shut down the pipeline but they sure as heck quit investing in any more production for a long time.

Alaska North Slope First Purchase Price
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=F005071__3&f=M

Maybe you are unaware of how the Natural Gas Drilling has already greatly tapered off.

Maybe you are hopeful the associated gas from oil production will magically meet the supply. But the reality is that is a relatively small supply.

Now drilling in the shale gas fields has been very productive.

But these are not the traditional wells of old that flow near initial rates for decades. They fall fast.

We are not going to stay significantly below the market value less the cost of transportation. That thought is foolish. Investors will not continue to invest in US Gas production. It is why we have already had such a large move away from Natural Gas drilling.

[biff]

DAMMIT THACKNEY, I AM TIRED OF YOU PUTTING WORDS IN MY MOUTH!!!

You own it you can do what you damn well please with it.

I am just saying the oil industry and this country is stupid, always has been when it comes to it and this countries future. They have never been and will always be that way.

Yes of course rig counts for gas is down. What do you expect with and excess? An increase?

The oil business is just like that commercial, “I want it now.”

You got a plan, lets hear it or did you co-star in Tremors?

[thackney]

I AM TIRED OF YOU PUTTING WORDS IN MY MOUTH!!!

Then I don't understand what you suggested in the first place.

You said:

However, I do not feel we should be selling our NG.

Who is "we" and what is "ours"?

[thackney]

You got a plan, lets hear it

We should proceed with allowing LNG to be sold overseas. Just as we allow plastics, feedstocks, etc to be sold.

We already tax the production, the jobs, the infrastruture, go ahead and put a tax on the exports, but do not ban it.