Sunday, December 16, 2012

US Groups opposing Oil Sands exploitation now have Domestic Natural Gas to Target

A lot of news related to natural gas in the past week, including the UK's blesssing of hydraulic fracturing exploration (fracking), and an S&P downgrade of British Columbia, of carbon tax fame, based significantly on that government's declining revenue from coal and natural gas industries.
Opponents of infrastructure to enable exporting can draw on oil sands opposition, which has served to make oil cheaper in North America than elsewhere, although the discrepancy is much smaller than it is for natural gas.  This is likely to serve as another reason for those wishing to profit from the reindustrialization of North America based on plentiful gas feedstocks to fiance sorta green groups in opposition of exporting.

The Oil Drum's Drumbeat on Friday opened with citing an argument for taxing natural gas,  With a natural gas tax, everyone can benefit argues that allowing exports of liquified natural gas (LNG) would drive up the domestic price - much better to just slap on a tax to drive up the domestic price. (disregarding the fact that higher prices to suppliers are incentive to create more product, and higher prices to consumers an incentive to consume less product - ie. the trade should grow American industry, and the tax should shrink it).

Coincidentally, New NASA satellite photos show America's oil fields at Night, with stunning images of the flaring (I've seen estimates of 25% of all natural gas in the Bakken field is flared, much of it due to lack of transport).  The same appears to be true in the Eagle Ford Shale area of Texas.

The Oil Drum continued it's natural gas theme noting a gaggle of doctors wanting the construction of natural gas export terminal restricted"until more is known about the health effects of hydraulic fracturing, the drilling process that has opened the way for a big increase in domestic gas production."

In light of the photos of the lights from the flared gas in the primarily oil play in the Bakken field, the doctors should stick to doctoring things other than facts.  Much of the gas is a byproduct of finding the much more lucrative oil.  If the choice is flaring or exporting, take the exporting.

The Oil Drum also notes Bloomberg has a poll showing 2/3rds of Americans in support of 'Tougher Fracking Regulation" - not surprising with the gaggle of doctors indescriminatedly demanding proof that something isn't .

The Oil Drum didn't finish it's reporting on any nonsense associated with natural gas there, with With U.S. awash in natural gas, why aren’t fuel bills falling? followed closely by Consumers get break on lower gas prices.

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