Posted on 03/10/2014 6:19:33 PM PDT by SeekAndFind
In light of the recent crisis instigated by Russia, lawmakers have lately been pushing the Obama administration to expedite the more than twenty outstanding applications from energy companies for permission to export more natural gas into the world market — and a handful of central European countries are decidedly for it. They have recently developed infrastructure advancements that have made it possible for gas that normally flows through Ukraine to the EU to also flow in the other direction, meaning that the EU can and in fact has been shipping gas to the Ukraine, and these ambassadors are hoping that the U.S. will turn up the supply taps and help them expand that capability, via The Hill:
Central European countries are asking U.S. lawmakers to expedite natural gas exports in an effort to curb Russian President Vladimir Putin’s power.
Ambassadors from Hungary, Poland, the Czech Republic and Slovakia wrote to Speaker John Boehner (R-Ohio) and Senate Majority Leader Harry Reid (D-Nev.) urging congressional action to fast-track natural gas exports to allies in Central and Eastern Europe.
“As events in Ukraine bring back the memories of the Cold War, from which all of our countries suffered terribly, we are writing to highlight the overall importance of U.S. engagement in Central and Eastern Europe, and more specifically in the area of energy security and reliable supply of natural gas,” the letter states.
With recent infrastructural investments in Central and Eastern Europe, it became possible to build “reverse gas flows”, which have allowed sending gas from Poland and Hungary to Ukraine at a cheaper price than what Ukrainians had to pay, the letter sent to Boehner and Reid on Friday states.
There are a few pretty important caveats to the overall “export now!” strategy to blunt Russia’s influence: For one thing, even if the Obama administration were to green-light a bunch of export permits today, it would still take energy companies at least a couple of years to get all of the necessary infrastructure and logistics in place and actually get down to the business of exporting (and Europe doesn’t have all of the requisite infrastructure to receive all of that added gas supply yet, either). For another, the potential for higher profits elsewhere in the world mean that the bulk of our natural gas exports might not even make it to central Europe:
White House spokesman Josh Earnest told reporters on Air Force One that policy changes would not have an immediate effect and noted that natural gasstocks in Europe were above normal levels because of a mild winter.
“There is no indication currently that there’s much risk of a natural gas shortage in the region,” he said. …
Once U.S. LNG exports start they likely will first head to Japan, India and other Asian countries that have little access to gas sent via pipeline and are willing to pay more for the fuel than Europe does.
As more U.S. projects are approved and investors spend billions of dollars to build them, U.S. LNG could play a bigger role after 2017 in reducing global prices for the commodity, analysts said.
But that last sentence from Reuters there is the line that I would argue: Even if it won’t be enough to ease the pressure off of Ukraine in short order, that’s no excuse not to keep moving forward on approving more export terminals. The Obama administration has signaled that they’re at least not opposed to doing more on that front, but the current situation is a prime example of just how much freer trade across the globe can help to blunt any one nations’ influence while everyone gets to reap the higher economic benefits — and it’s better to stay ahead of the game then getting caught from behind because of political and bureaucratic holdups. I might add that European countries like Germany that have quixotically tried to ban or ignore hydraulic fracturing are probably rethinking those strategies right about now.
He hasn’t even signed off on the Keystone XL pipeline and I’d bet you $5 he never will.
Europe:
Won’t pay to defend itself.
Won’t pay for its own energy.
Will bash America at every opportunity.
Let them freeze in the dark.
You know, if we could ramp up oil production, the Eurppeans could solve our econ woes just by cutting off the Ruskies.
Frack the green Euro-weenies.
Thank you. Looks like people would rather vent it into the atmosphere instead of creating some jobs and making a little money.
I’m all for it if they want to build the infrastructure here. However Obama is standing in the way of the bridge Canada wants to build over the Detroit river so I wouldn’t expect any better.
Robust American Fossil Fuel Production is the key to safer world.
But she was hardly the first to suggest that, any thinking American would come up with that solution sooner or later.
Opps! Ping to you too Megan Dear :)
I so want him to say no.
Yes you read that right. NO.
Because the sooner pressure is put to remove him, the faster we can get ALL of our energy on track. And all it will take is his denial.
Why can’t they just put up some more solar panels and windmills?
Obama won’t even let someone else pay for vital infrastructure. You can’t tell me his goal isn’t destruction of America.
Always was. The problem is people even on the right can’t face the truth of it. They forgot the lessons of history. Or intentionally ignore them because the truth is to much to handle...Jack Nicholson jokes aside,
Won’t pay to defend itself.
Won’t pay for its own energy.
Will bash America at every opportunity.
Let them freeze in the dark.
I'm inclined to agree.
Obama sees the entire West as colonial powers and himself as the one that will take us down. Mostly the USA. Obama is more destructive to our Country than any foreign power could be.
I personally think he’s literally stolen hundreds of billions for himself and friends.
Correct Cripple that was going to be my next point, this isn't incompetence or dogma attached to Global Warming, this is about making America Weaker!
GIVE? As in FREE?
Sure, obama would just love to give away our stuff!
She should know
Both her and I know where come from Alaska LOL!
The people who put him in power need to choke on their accomplishment for a while. Pain is a great teacher.
Reagan as we all know believed in trickle down theory because it works. I think that this teaching moment, brought to the world by Barry will have zero effect on the entrenched libs, but will have a more profound effect on the all so called moderates. Because they will feel the most pain. Here and throughout Europe. And just perhaps they will not like paying astronomically for heat, power and products that will...’necessarily skyrocket’... due to their love of global warming and other liberal idiocy. Freezing hungry in the dark has that effect sometimes. Or burning with no air conditioning.
Perhaps reality will trickle down too.
People are all over the map on Russia right now, but this could all very well wreck the hold of the UN and EU as a power bloc. And those two blocs have done far more damage to the world/world economy than Russia’s little adventure.
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