Posted on 01/05/2016 5:19:37 AM PST by thackney
...until there is a real cold winter and contract sales to Europe and elsewhere cause domestic prices to shoot up exponentially.
You believe not having exports prevented past price spikes?
Would having a larger supply infrastructure, more product in storage help prevent those price spikes?
the point is not to stifle but to make the counter point that the business of America is business
anti business is not American
High unemployment over the past eight years was caused by the growth of government and the shrinking of private industry or the free market.
Trade deficits are always transitory. They have to be. Otherwise, everyone would be trying to run trade deficits.
A trade deficit means that we trade green pieces of paper for stuff. If the process ended there, it would be heaven for us. We'd have piles of stuff for the cost of printing green paper.
But eventually the people with the green pieces of paper realize that the paper has no intrinsic value, so they trade the paper for stuff from another country.
Eventually those dollars are repatriated. This process of repatriation is not seen, because the dollars come in the form of an incremental increase in demand across the entire economy.
This unseen, latter part of the process is what confuses people regarding free trade.
Seriously, watch the video series.
What happened to propane 2 years ago proves the converse of your statement. Once contracts are signed to delver product overseas they happen regardless of whether it's an exceptionally and unusually cold winter. This is fact, and we either pay out the butt or freeze.
You have your “Free Trade” religion and I have reality.
The supply of natural gas is so big compared to the demand it will not have an impact on U.S. prices.
American Energy is the key to a safer world. This is the first step of many.
Not to mention the limited and expensive bottleneck required to convert NatGas to LNG and ship it to Europe.
Adding up everything, the cost to get LNG to market is in the range of around $2.90 to $4.15 per Mcf. This sets the “base price” under which LNG won’t be produced and exported.
The economics of LNG
http://shareholdersunite.com/the-ioc-files-useful-background-material/the-economics-of-lng/
Ok so now supply has no effect on prices? Wait, what?
Two years ago, Propane exports were significantly smaller. Since then they have grown and prices went down.
If the supply source had been smaller, prices would have been even higher.
Supply and demand ALWAYS sets the price unless you have price controls.
SeaHawkFan is confusing reserves with supply.
Supply is the production rate, not unproduced reserves in the ground.
Venezuela has massive oil reserves but a dwindling production rate. Their supply is falling.
That price spikes were primarily caused by pipeline and rail problems, along with a lower Midwest stocks caused by an early drawdown of propane. Exports would not help or hurt those problems.
Winter 2013-14 Propane Updates
http://www.freerepublic.com/focus/news/3120788/posts
Posted on 2/8/2014
Yes or no. If the Euro market is killed are you telling me that gas and oil companies would go out of business suppling 320 million Americans their energy needs?
How much lower do you want shale gas to go? It could be free and your gas bill would still be high due to taxes, delivery charges, and government enforced freebies.
Do you have any ownership interest in this gas you want left in the ground or sold cheaper? If you want it left in the ground then buy some ground with proven reserves and leave it there. It can be your gift to prosterity.
Drill here, drill now, sell here and everywhere.
Great post!
I watched about half but learned a lot.
I believe your expectation to predict future energy needs and technology is severely lacking.
It is better to have jobs and fewer dollars leaving our country today than to have powers such as Russia and those in the Middle East grow larger.
You keep trying to frame questions outside of reality. I live and work in the real world. I don’t want to grow imports trying to stay below a government imposed export ban.
If they don’t sell it by LNG to foreign markets, production will drop off and pricing will go up even more. There really isn’t any free rides.
People remember things but not correctly. Yes New England froze and still can because they are idiots and refuse to expand their pipelines and utilities. It has nothing to do with exports. The Founding Father had nothing against exports. Please cite one example of a FF trying to stymy exports. The FF did like to tax trade and that was eventually the cause of the Civil War.
There is no “we” on trade. There are individuals and companies making choices on how to spend their money. There is no right as some part of a collective “we” to decide how a rightful owner of something can sell it.
Now start up the up what’s best for our national defense and wants best to fight the commies argument. But I’m sure Obama and the Dims would be glad to help regulate trade in a satisfactory manner.
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