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Natural Gas: Transport Or Export?

Seeking Alpha -- In spite of surging US oil production, average gasoline prices in 2012 were the highest on record ($3.37/gal). This was a result of three primary factors:

US companies are allowed to export refined product
US gasoline is therefore priced off of International oil prices (Brent)
Average Brent prices also averaged a record high in 2012

Meanwhile, US domestic natural gas prices continue to sell at a huge discount to worldwide oil and natural gas prices. This is summarized by the historical price chart below (courtesy of Argus):

Clearly US natural gas reserves, combined with its 2 million+ miles of natural gas pipelines which distribute it to every major city and 63 million homes, is a huge economic advantage for America. Some believe it to be this country's #1 economic advantage ove

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Submitted Feb 24, 2013 By: mastermariner

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Straitliner Champion Author Illinois Posts:1,520 Points:240,450 Joined:Sep 2012	Message Posted: Feb 25, 2013 4:26:50 AM Ignore Straitliner Report Abuse Okay.
bvrbill Champion Author Eugene Posts:3,238 Points:521,550 Joined:Jul 2011	Message Posted: Feb 24, 2013 9:07:34 PM Ignore bvrbill Report Abuse No one is looking out for what is best for middle class Americans. Not big oil. Not our elected officials.
Gas_Eyes Champion Author Dallas Posts:2,692 Points:647,785 Joined:Mar 2011	Message Posted: Feb 24, 2013 11:06:03 AM Ignore Gas_Eyes Report Abuse The cost of natural gas is too low compared to prices outside the US. A healthy price will promote more exploration.
fuel2use Champion Author Seattle Posts:3,497 Points:734,555 Joined:Dec 2010	Message Posted: Feb 24, 2013 10:17:11 AM Ignore fuel2use Report Abuse Cost a lot to hook up to.
streetdesign All-Star Author Illinois Posts:551 Points:577,695 Joined:May 2011	Message Posted: Feb 24, 2013 8:56:35 AM Ignore streetdesign Report Abuse Does not make any sense but that doesn't matter. Natural gas is cheaper now but speculators and greed will eventually find it's way into pricing. Sad but true.
Rockyguitar Champion Author Tampa Posts:2,577 Points:1,205,495 Joined:Sep 2008	Message Posted: Feb 24, 2013 5:56:53 AM Ignore Rockyguitar Report Abuse A lot of greed and B S, o yes, and devalued dollars at play here.
SUPERSTEVIEO Champion Author Quebec Posts:3,523 Points:787,115 Joined:Oct 2010	Message Posted: Feb 24, 2013 5:38:22 AM Ignore SUPERSTEVIEO Report Abuse and what can we do???? NOTHING.......
SUNOIL Champion Author Toledo Posts:5,255 Points:1,927,955 Joined:Jul 2007	Message Posted: Feb 24, 2013 5:31:36 AM Ignore SUNOIL Report Abuse We will have no say in this
JamesCalvin Champion Author Lancaster Posts:3,201 Points:522,480 Joined:Nov 2011	Message Posted: Feb 24, 2013 5:28:06 AM Ignore JamesCalvin Report Abuse Burn!
humblepie Champion Author Toledo Posts:34,324 Points:2,374,295 Joined:Mar 2006	Message Posted: Feb 24, 2013 4:11:57 AM Ignore humblepie Report Abuse no petroleum product exports period i say
molebaby96 Champion Author Tallahassee Posts:2,126 Points:507,640 Joined:Nov 2011	Message Posted: Feb 24, 2013 3:43:54 AM Ignore molebaby96 Report Abuse Need for NG vehicles now.
greshams Champion Author Cincinnati Posts:2,022 Points:378,535 Joined:Nov 2011	Message Posted: Feb 23, 2013 11:39:25 PM Ignore greshams Report Abuse why not take care of our own before exporting.
rjr54 Champion Author Winnipeg Posts:1,110 Points:394,395 Joined:Feb 2005	Message Posted: Feb 23, 2013 11:30:32 PM Ignore rjr54 Report Abuse As a Canadian, it should be noted that a lot of our natural gas is already exported to the USA.
JeffNStef All-Star Author Montana Posts:879 Points:1,604,790 Joined:Oct 2007	Message Posted: Feb 23, 2013 11:29:03 PM Ignore JeffNStef Report Abuse right on snagged, keep it here.
CivicMA Champion Author Boston Posts:1,907 Points:538,020 Joined:Jun 2011	Message Posted: Feb 23, 2013 11:28:20 PM Ignore CivicMA Report Abuse We should sell it in the US until all needs are met before exporting.
GoGoGoodyear Champion Author Los Angeles Posts:2,060 Points:510,075 Joined:Mar 2010	Message Posted: Feb 23, 2013 11:26:17 PM Ignore GoGoGoodyear Report Abuse That article is spot on. Our elected leaders are all bought and paid for so us regular folks don't have a chance. This country will squander away yet another opportunity to improve it's economy -and- the environment at the same time! When (not if) gas prices go up and power companies start going back to using coal, all of our electric bills will go up due to the costs of smoke reduction equipment and those new carbon credits that power companies must now buy. Guess who uses lots of electricity? Factories. Gives them yet another reason to send jobs out of the US. Don't expect wind and solar to make up the difference either. How many years have wind/solar been around? How many coal or gas power plants have been able to shut down because wind/solar was making up the difference? And just wait until there is a disaster at an LNG export facility where they pump the stuff into cargo ships. It will make the BP oil spill look like a day at the beach. Remember the recent disaster where a natural gas pipeline exploded and took out an entire neighborhood? That was just one ruptured pipe.
roadrunnerMO Champion Author Kansas Posts:8,421 Points:1,702,390 Joined:Jul 2008	Message Posted: Feb 23, 2013 11:24:29 PM Ignore roadrunnerMO Report Abuse Keep it here and continue building infrastructure to expand into automotive industries.
Bezalel Champion Author Oklahoma City Posts:12,112 Points:2,293,675 Joined:Oct 2006	Message Posted: Feb 23, 2013 11:24:21 PM Ignore Bezalel Report Abuse Stop subsidies until All refined product stays here!
snagged Veteran Author Akron Posts:396 Points:112,030 Joined:Oct 2012	Message Posted: Feb 23, 2013 11:23:53 PM Ignore snagged Report Abuse The worst blog I've seen. This was written by Obama. Yuk
TripleHs Champion Author Austin Posts:3,355 Points:919,590 Joined:Oct 2009	Message Posted: Feb 23, 2013 11:22:55 PM Ignore TripleHs Report Abuse it depends on the demand and supply
TXGasPriceSpy Champion Author Fort Worth Posts:7,825 Points:1,475,200 Joined:Sep 2008	Message Posted: Feb 23, 2013 11:20:12 PM Ignore TXGasPriceSpy Report Abuse I've always liked Seeking Alpha.
wz Champion Author Twin Cities Posts:2,499 Points:1,279,740 Joined:Feb 2009	Message Posted: Feb 23, 2013 11:19:47 PM Ignore wz Report Abuse Natural gas is already making inroads into the transportation industry. Its biggest drawback at this point is the lack of a public infrastructure to refuel natural gas vehicles. With the relative price so low compared to gasoline and diesel, the potential savings will provide the funding that will build that infrastructure until natural gas stations are as readily available as diesel (the primary fuel it will replace).
arinkrat17 Champion Author Twin Cities Posts:6,304 Points:1,334,400 Joined:Aug 2009	Message Posted: Feb 23, 2013 11:19:08 PM Ignore arinkrat17 Report Abuse Ok
hawkman74 All-Star Author Dallas Posts:713 Points:452,620 Joined:Sep 2011	Message Posted: Feb 23, 2013 11:18:54 PM Ignore hawkman74 Report Abuse Nah - keep it here.
hawkman74 All-Star Author Dallas Posts:713 Points:452,620 Joined:Sep 2011	Message Posted: Feb 23, 2013 11:18:07 PM Ignore hawkman74 Report Abuse Could we join opec ?
arinkrat17 Champion Author Twin Cities Posts:6,304 Points:1,334,400 Joined:Aug 2009	Message Posted: Feb 23, 2013 11:17:57 PM Ignore arinkrat17 Report Abuse Ok
Rich1430 All-Star Author Indiana Posts:761 Points:260,340 Joined:Mar 2012	Message Posted: Feb 23, 2013 11:15:23 PM Ignore Rich1430 Report Abuse Take our oil off the Stock Market. That should lower the prices at the pump. Drill for, refine, keep and use our gas, natural gas, all oil products here, any excess can be exported.
Mowerman08 Champion Author Milwaukee Posts:4,770 Points:1,219,945 Joined:Aug 2008	Message Posted: Feb 23, 2013 11:14:57 PM Ignore Mowerman08 Report Abuse stop exporting gas, points to oil company greed
djp071158 All-Star Author Detroit Posts:683 Points:295,925 Joined:May 2012	Message Posted: Feb 23, 2013 11:14:39 PM Ignore djp071158 Report Abuse Keep it here.
mcbrownie220 Sophomore Author Toledo Posts:225 Points:155,875 Joined:Jun 2012	Message Posted: Feb 23, 2013 11:12:38 PM Ignore mcbrownie220 Report Abuse hmmm
mfeldstein Champion Author Ottawa Posts:8,186 Points:1,933,405 Joined:Feb 2007	Message Posted: Feb 23, 2013 11:11:28 PM Ignore mfeldstein Report Abuse It ain't natural. Ban fracking.
kd5kpd Champion Author Texas Posts:3,752 Points:1,419,650 Joined:Apr 2006	Message Posted: Feb 23, 2013 11:09:56 PM Ignore kd5kpd Report Abuse Drill here keep here & only sell any excess product!!!
10k Champion Author North Carolina Posts:21,275 Points:2,256,945 Joined:May 2006	Message Posted: Feb 23, 2013 11:09:26 PM Ignore 10k Report Abuse RENEGADE: great point..
Thomtec Champion Author Nashville Posts:2,484 Points:611,070 Joined:May 2011	Message Posted: Feb 23, 2013 11:08:33 PM Ignore Thomtec Report Abuse Both
DirtDauber Champion Author San Antonio Posts:6,796 Points:1,630,385 Joined:Nov 2005	Message Posted: Feb 23, 2013 11:07:06 PM Ignore DirtDauber Report Abuse At these prices, the customers will stop buying more than just what is necessary.
JaegerWMeister All-Star Author Twin Cities Posts:810 Points:340,715 Joined:Mar 2012	Message Posted: Feb 23, 2013 11:06:45 PM Ignore JaegerWMeister Report Abuse Good article
gasmack Champion Author Ventura Posts:1,720 Points:670,350 Joined:Feb 2011	Message Posted: Feb 23, 2013 11:05:29 PM Ignore gasmack Report Abuse We'll see. Hopefully someone will take corrective action if necessary.
Ron77095 Champion Author Houston Posts:3,075 Points:605,600 Joined:Sep 2011	Message Posted: Feb 23, 2013 11:04:37 PM Ignore Ron77095 Report Abuse ok.
RENEGADEGAS Champion Author Missouri Posts:14,929 Points:1,594,150 Joined:Jul 2008	Message Posted: Feb 23, 2013 11:03:25 PM Ignore RENEGADEGAS Report Abuse Dont matter to me as we dont use it. Just keep in mind, we only have about 100 years of natural gas as of last year and thats based on the usage rate of last year as well. The more things we convert to natural gas and the more we use it the less time we will have it.
krobp46 Champion Author Milwaukee Posts:2,726 Points:544,020 Joined:Sep 2011	Message Posted: Feb 23, 2013 11:03:19 PM Ignore krobp46 Report Abuse Both
melvindale Champion Author Michigan Posts:1,438 Points:351,230 Joined:Jun 2011	Message Posted: Feb 23, 2013 11:01:40 PM Ignore melvindale Report Abuse Both.
nurdco Champion Author Colorado Springs Posts:9,250 Points:1,697,335 Joined:Apr 2008	Message Posted: Feb 23, 2013 11:00:11 PM Ignore nurdco Report Abuse Export for profit...
abacus44 Champion Author Toms River Posts:3,495 Points:750,665 Joined:Jan 2011	Message Posted: Feb 23, 2013 10:59:03 PM Ignore abacus44 Report Abuse Reading comments, ????
Vette1967 Champion Author Albany Posts:5,982 Points:1,278,925 Joined:Jun 2009	Message Posted: Feb 23, 2013 10:58:39 PM Ignore Vette1967 Report Abuse It's a matter of who will pay more.
Double_Golden Champion Author San Francisco Posts:2,575 Points:608,310 Joined:Aug 2011	Message Posted: Feb 23, 2013 10:55:55 PM Ignore Double_Golden Report Abuse it should keep it in house to lower gas prices, if we have extra, then export...
yonasb Champion Author Houston Posts:3,463 Points:740,625 Joined:Apr 2011	Message Posted: Feb 23, 2013 10:54:51 PM Ignore yonasb Report Abuse i wander why the price is going up
DrGasPain Veteran Author Dallas Posts:362 Points:460,450 Joined:Mar 2011	Message Posted: Feb 23, 2013 10:54:13 PM Ignore DrGasPain Report Abuse I think the answer has to be both, but how much?
Rageagainsttm Champion Author Tampa Posts:8,313 Points:1,905,055 Joined:Jul 2007	Message Posted: Feb 23, 2013 10:53:29 PM Ignore Rageagainsttm Report Abuse Yes and no.
probedude2 Champion Author Akron Posts:12,568 Points:2,383,130 Joined:Jun 2003	Message Posted: Feb 23, 2013 10:52:21 PM Ignore probedude2 Report Abuse Here's a hint: we're not gonna get any
unicornpmb Champion Author Buffalo Posts:8,506 Points:1,632,440 Joined:Sep 2005	Message Posted: Feb 23, 2013 10:48:28 PM Ignore unicornpmb Report Abuse The answer is determined with the profit.