Exporting natural gas – A great idea
Exporting natural gas would have two major advantages, it seems to me.
First, it would stabilize prices in the U.S. and around the world by integrating markets that are not connected.
Second, by creating more demand for U.S. produced gas and stabilizing prices it would encourage more exploration and production here. That is important because exploration has dropped off because of the currently low prices. We should export gas if we want to create the incentives that will result in production of more gas.
That’s the key info I draw from a Wall Street Journal op-ed by Professor Thomas Tunstall – Exporting Natural Gas Will Stabilize U.S. Prices.
It feels like I’m finally getting my arms around oil. Still working to get an idea about natural gas. This article helps.
Another thing I learned is why it is so difficult to export natural gas. The article gives an overview of what it takes. That extra work adds an extra $6.40 per thousand cubic feet to the cost of gas moved from the Gulf coast to Japan.
Prof. Tunstall leads the team that produced the research report on the impact of Eagle Ford.
Check out the WSJ op-ed. It’ll give you great background. Also a good argument for exporting natural gas.
Sounds like exporting natural gas is a great idea for the U.S.