Monday, May 19, 2014

Like Keystone, Obama Administration Now Delays LNG Exports

It should not come as a surprise that the Obama administration continues to be beholden to radical environmentalists. The administration is dragging their feet on dozens of LNG export permits.

Well-publicized is their continual 'non-approval' of the Keystone pipeline -- frustrating supporters and our closest ally and northern neighbor both. The administration's war on coal is no secret as they are successfully killing our domestic coal industry -- never mind that coal still accounts for about 40% of our nation's electrical output and accounts for 100s of years of energy reserves.  Furthermore, the Obama administration, for years, has also complicated and slowed-down oil/gas permits and production in US Federal waters in comparison to the onshore fracking boom.

These LNG exports would be very attractive to Europe where they have the facilities to receive this gas and are very nervous about Russian supplies.  Just when the administration has an opportunity to send a strong message to Russia and challenge their natural gas supply hegemony in Europe, Obama proves once again to be a huge dud. Gee, what's new? There is no strategic thinking whatsoever in the White House and Capital Hill. We are in the hands of fools and idiots.

Truly, this administration and the Democrats continue to engage in a war on jobs.   Job creation in the oil and gas business has been one of the few bright spots in our country and LNG permit delays will hurt this.   In reality, they've wanted to kill it all along.   All of this is because of the groundless hysteria surrounding 'climate change.'

The verdict is in.  There will never be real prosperity in this country while the Obama and the Democrats remain in power. 

Natural gas prices in the US are 4 times lower than crude oil (on an equivalent BTU basis) due to it's abundance.  US natural gas prices are 4 times lower than in Europe providing an opportunity to export our gas to Europe via LNG tankers. 

Drilling for natural gas has fallen off due to the low prices (while drilling and fracking of shale for petroleum liquids has soared).   LNG exports would improve prices, reinvigorate the natural gas drilling boom, our gas supply and improve our jobs market.  

Overall LNG exports would help the US economy, would provide significant revenues for the government and would be a strategic help to our allies in Europe in their conflict with the resurgent Russian bear.

More explanation about the LNG permit delays from Newsmax,
The Obama administration is holding up approval of applications for liquefied natural gas exports that could total nearly 30 billion cubic feet per day. 
 Some of the more than two dozen applications were filed as long ago as 2011 and early 2012. But Obama's Energy Department has consistently favored renewable energy sources over carbon-based fuels.

"America could sell natural gas to Europe and Asia, undercutting Russia's market, at no additional cost to the federal government," according to Diana Furchtgott-Roth, a senior fellow at the Manhattan Institute and former chief economist of the U.S. Department of Labor.

"On the contrary, increased production means additional tax revenue to federal and state governments."

The companies that have filed applications for export permits could potentially export 29 billion cubic feet of LNG daily, and if the export process were not so difficult, more companies would likely be willing to invest in LNG exports and apply for permits.

The earliest application was filed in October 2011, and eight were filed in 2012. The application for the largest quantity of LNG exports, 3.22 billion cubic feet per day, was filed by Freeport-McMoRan Energy LLC.

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