Its going to be a cold son of a bitch in the north next week; Chicago residents will be paying 90 cents per therm, equal to about $9/MMBTU. There have already been power outages and its not even cold yet up there, relatively speaking,
How can that be, you say, when the US is awash in APP Basin natural gas and associated gas from tight oil wells in the Bakken and particularly the mighty, Permian Basin?! So much gas, in fact, West Texas producers are only getting about a buck an MMBTU for the stuff and they are still flaring the snot of it?!!
Mike Sommers with the American Petroleum Institute said last week that oil and natural gas exports from the US to "allies" around the world benefit the American consumer by lowering energy costs and by ensuring long term energy security for our country.
That is exactly what he is paid to say, $2.5MM a year, in fact, which just goes to show you, being a yes man for the organization, pays.
Here's what I think: American natural gas ought to be dirt cheap for Grandma's in Pittsburg trying to stay warm and for American industry. Its not.
If LNG exports have nothing to do with that, prove it.
America first !