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.

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Background on natural gas revolution

I am rapidly getting educated on the revolution in oil that is underway. Haven’t dug into the natural gas revolution that has been going on a long time.

The Economist has a 14 page special report on natural gas in their July 14 edition: An unconventional bonanza.

If you are reading my posts on energy, you will want to check out their articles.

A few of the things I learned is that natural gas is very difficult to transport. As a result, there is a limited international market. That means that most gas is sold and used in the country where it is produced. That would be why prices in the US have dropped so radically but stayed stable elsewhere.

The technology is evolving rapidly. This also means the costs to drill are dropping and will probably continue to drop:

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