Natural gas, financial incentive

Natural gas cost forecast

Prohibiting or restricting LNG trade not only is contrary to international norms agreed in the WTO but also destroys value in the United States by creating artificially low prices for domestic consumption of natural gas.(1, at 4)

I think that this is funny logic; for example, “[C]reating artificially low prices for domestic consumption of natural gas.” is great for United States natural gas consumers! Low energy price, low wages, go together well.

I need to support natural gas, just why?

Those who sell gas might just have an economic incentive to export.

US natural gas producers are eager to take advantage of tremendous price differentials between the United States and foreign markets. US prices are around $3 per million metric British thermal units (mmBtu), while prices in Europe are $11 to $13 per mmBtu and as high as $18 per mmBtu in Southeast Asia. Even considering the cost of liquefaction and ocean transportation at $3.50 to $9.00 per mmBtu, producers can export LNG and earn a signifi cant profi t over domestic sales.(1, at 2)

Our U.S. energy price rise to what?

US natural gas producers are eager to take advantage of tremendous price differentials between the United States and foreign markets. (1, at 3)

If we set-aside the for profit motivation for export sales of natural gas resources, but what remains is the community—my community— right-to-know about the specific hazards and areas of hazards introduced into my Tacoma City, Port of Tacoma, Washington USA community?

We need an explanation why; for example, “[S]ome natural resources—particularly petroleum and hard minerals—are unevenly distributed across the globe. Geographic concentration of production can encourage the formation of cartels that seek to lift prices above competitive norms.”(1, at 4) is really bad for our local community energy (natural gas) ratepayer’s cost?

We in Tacoma Washington USA don’t need to race-to-the-bottom with our wages while energy prices are negotiated on a world commodity market.

I think this

No natural gas plants should be designed or constructed or operated within my Tacoma Washington community without first: A written and public published hazard analysis study related to each natural gas conversion process or natural gas distribution system located within my Tacoma City community and the public potential hazards (life and property) described and areas of hazards!

We should never permit a natural gas customer’s ratepayers’ price to become bench-marked price by a exported price received for U.S. natural gas resource. I consider this thought should apply to NG, CNG, LNG, and Natural gas to methanol.

Works cited

(1) Gary Clyde Hufbauer, Allie E. Bagnall, and Julia Muir, Policy Brief: Liquefied Natural Gas Exports: An Opportunity for America, (NUMBER PB13-6) (Feb. 2013) (Peterson Institute for International Economics), (“Gary Clyde Hufbauer is the Reginald Jones Senior Fellow at the Peterson Institute for International Economics. Allie E. Bagnall and Julia Muir are research analysts at the Peterson Institute.”) online at https://www.piie.com/publications/pb/pb13-6.pdf (visited Jan. 7, 2016).

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