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GasBuddy News Article

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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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Author Topic: Natural Gas: Transport Or Export? Back to Topics
REPLIES (newest first) Post a Reply
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Straitliner
Champion Author Illinois

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Message Posted: Feb 25, 2013 4:26:50 AM

Okay.
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bvrbill
Champion Author Eugene

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Message Posted: Feb 24, 2013 9:07:34 PM

No one is looking out for what is best for middle class Americans. Not big oil. Not our elected officials.
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Gas_Eyes
Champion Author Dallas

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Message Posted: Feb 24, 2013 11:06:03 AM

The cost of natural gas is too low compared to prices outside the US. A healthy price will promote more exploration.
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fuel2use
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Message Posted: Feb 24, 2013 10:17:11 AM

Cost a lot to hook up to.
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streetdesign
Champion Author Illinois

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Message Posted: Feb 24, 2013 8:56:35 AM

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.
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Rockyguitar
Champion Author Tampa

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Message Posted: Feb 24, 2013 5:56:53 AM

A lot of greed and B S, o yes, and devalued dollars at play here.
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SUPERSTEVIEO
Champion Author Quebec

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Message Posted: Feb 24, 2013 5:38:22 AM

and what can we do???? NOTHING.......
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SUNOIL
Champion Author Toledo

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Message Posted: Feb 24, 2013 5:31:36 AM

We will have no say in this
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JamesCalvin
Champion Author Lancaster

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Message Posted: Feb 24, 2013 5:28:06 AM

Burn!
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humblepie
Champion Author Toledo

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Message Posted: Feb 24, 2013 4:11:57 AM

no petroleum product exports period i say
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molebaby96
Champion Author Tallahassee

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Message Posted: Feb 24, 2013 3:43:54 AM

Need for NG vehicles now.
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greshams
Champion Author Cincinnati

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Message Posted: Feb 23, 2013 11:39:25 PM

why not take care of our own before exporting.
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rjr54
Champion Author Winnipeg

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Message Posted: Feb 23, 2013 11:30:32 PM

As a Canadian, it should be noted that a lot of our natural gas is already exported to the USA.
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JeffNStef
All-Star Author Montana

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Message Posted: Feb 23, 2013 11:29:03 PM

right on snagged, keep it here.
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CivicMA
Champion Author Boston

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Message Posted: Feb 23, 2013 11:28:20 PM

We should sell it in the US until all needs are met before exporting.
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GoGoGoodyear
Champion Author Los Angeles

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Message Posted: Feb 23, 2013 11:26:17 PM


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.
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roadrunnerMO
Champion Author Kansas

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Message Posted: Feb 23, 2013 11:24:29 PM

Keep it here and continue building infrastructure to expand into automotive industries.
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Bezalel
Champion Author Oklahoma City

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Message Posted: Feb 23, 2013 11:24:21 PM

Stop subsidies until All refined product stays here!
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snagged
Veteran Author Akron

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Message Posted: Feb 23, 2013 11:23:53 PM

The worst blog I've seen. This was written by Obama. Yuk
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TripleHs
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Message Posted: Feb 23, 2013 11:22:55 PM

it depends on the demand and supply
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TXGasPriceSpy
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Message Posted: Feb 23, 2013 11:20:12 PM

I've always liked Seeking Alpha.
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wz
Champion Author Twin Cities

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Message Posted: Feb 23, 2013 11:19:47 PM

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).
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arinkrat17
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Message Posted: Feb 23, 2013 11:19:08 PM

Ok
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hawkman74
Champion Author Dallas

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Message Posted: Feb 23, 2013 11:18:54 PM

Nah - keep it here.
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hawkman74
Champion Author Dallas

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Message Posted: Feb 23, 2013 11:18:07 PM

Could we join opec ?
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arinkrat17
Champion Author Twin Cities

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Message Posted: Feb 23, 2013 11:17:57 PM

Ok
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Rich1430
Champion Author Indiana

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Message Posted: Feb 23, 2013 11:15:23 PM

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.
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Mowerman08
Champion Author Milwaukee

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Message Posted: Feb 23, 2013 11:14:57 PM

stop exporting gas, points to oil company greed
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djp071158
Champion Author Detroit

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Message Posted: Feb 23, 2013 11:14:39 PM

Keep it here.
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mcbrownie220
Sophomore Author Toledo

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Message Posted: Feb 23, 2013 11:12:38 PM

hmmm
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mfeldstein
Champion Author Ottawa

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Message Posted: Feb 23, 2013 11:11:28 PM

It ain't natural. Ban fracking.
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kd5kpd
Champion Author Texas

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Message Posted: Feb 23, 2013 11:09:56 PM

Drill here keep here & only sell any excess product!!!
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10k
Champion Author North Carolina

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Message Posted: Feb 23, 2013 11:09:26 PM

RENEGADE: great point..
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Thomtec
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Message Posted: Feb 23, 2013 11:08:33 PM

Both
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DirtDauber
Champion Author San Antonio

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Message Posted: Feb 23, 2013 11:07:06 PM

At these prices, the customers will stop buying more than just what is necessary.
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JaegerWMeister
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Message Posted: Feb 23, 2013 11:06:45 PM

Good article
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gasmack
Champion Author Ventura

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Message Posted: Feb 23, 2013 11:05:29 PM

We'll see. Hopefully someone will take corrective action if necessary.
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Ron77095
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Message Posted: Feb 23, 2013 11:04:37 PM

ok.
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RENEGADEGAS
Champion Author Missouri

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Message Posted: Feb 23, 2013 11:03:25 PM

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.
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krobp46
Champion Author Milwaukee

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Message Posted: Feb 23, 2013 11:03:19 PM

Both
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melvindale
Champion Author Michigan

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Message Posted: Feb 23, 2013 11:01:40 PM

Both.
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nurdco
Champion Author Colorado Springs

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Message Posted: Feb 23, 2013 11:00:11 PM

Export for profit...
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abacus44
Champion Author Toms River

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Message Posted: Feb 23, 2013 10:59:03 PM

Reading comments, ????
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Vette1967
Champion Author Albany

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Message Posted: Feb 23, 2013 10:58:39 PM

It's a matter of who will pay more.
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Double_Golden
Champion Author San Francisco

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Message Posted: Feb 23, 2013 10:55:55 PM

it should keep it in house to lower gas prices, if we have extra, then export...
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yonasb
Champion Author Houston

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Message Posted: Feb 23, 2013 10:54:51 PM

i wander why the price is going up
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DrGasPain
All-Star Author Dallas

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Message Posted: Feb 23, 2013 10:54:13 PM

I think the answer has to be both, but how much?
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Rageagainsttm
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Message Posted: Feb 23, 2013 10:53:29 PM

Yes and no.
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probedude2
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Message Posted: Feb 23, 2013 10:52:21 PM

Here's a hint: we're not gonna get any
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unicornpmb
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Message Posted: Feb 23, 2013 10:48:28 PM

The answer is determined with the profit.
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Thomtec
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Message Posted: Feb 23, 2013 10:48:07 PM

Blah blah
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