Are we stupid? Have we not learned, or is it just that our history reveals that we know but we are "dumbing" down as a nation?
For the past year, we have been reading on this site, input from our PA neighbors, the ban in NY, fracking is bad for your health, resulting in the slowdown in drilling the Marcelluss. Now there is a debate whether to export LNG and bring back our dollars; ship a load of LNG to China and return the ship with a load of dollars?
People, if you want your bonuses to turn to royalties overnight, we need to supply the market period.....wherever it may be and push our government to stay out of FREE ENTERPRISE. When we start exporting NG, the slowdown in PA drilling will overnight turn the oil giants back into rapid production mode, this is basic supply and demand. No one knows better than us here at the ground level, drilling the marcelluss for NG has stalled because of the local glut!
If you want your local government leaders to do the right thing and sell our oversupply, say YES here and call you elected government officials.
I'll go first: "Hey Tim Ryan , you lazy bum, get back over to Washington and tell them to allow us to sell our NG to the Chinese and Europeans, we got more NG sitting down here not being drilled because you bums want to interfer."
Crap! we are missing the boat again, Shell and China Petrochemical are investing into a facility in British Columbia to export LNG.
Don't worry Ron , sounds like Shell has big plans for our gas. From here , on the Right Coast , we can supply our friends in Europa! (if they can afford to buy it)
Anyone know if they have decided on location for their Cracker Plant ?
A gas liquification plant or two would sure be nice also!
I have a feeling the lions share of this great resource will be consumed here at home. Before it's said and done a whole new era of domestic conversion to NG is going to drive the market.
Don't forget we are still the largest economy on the planet! Tons of room for domestic useage growth.
Who knows.....there may come a day when the oil that comes from our wells is worth less than the gas.
Wouldn't it be a shame to see Freighters full of C.A.R.E. packages replace all the oil tankers in The Persian Gulf............?
Good luck getting approval for an export site on the Eastern seaboard. Too many wing nut nut jobs on the east coast. They won't let us drill offshore, they won't let us put up wind farms, etc. LNG export facilities are very costly and the whacko's in that part of the country will be dead set against it, just like they are everything else. It will have to be shipped to the Gulf Coast and exported from there. But that's okay, we'll take the jobs, investment, etc.
Today, I was just made aware of a 36" west to east gathering pipeline in Goshen which will tie into the existing Dominion major pipeline. Seems the focus is to establish the pipeline prior to massive drilling in the wet gas zone.
Question for you Ron...
Since China and other countries are buying up the leases in the Marcellus and other shale areas, why would it be considered an 'export' if they are only shipping it to their country with them holding the lease as owners of the marketable natural gas? Is there export fees for them to pay if they are taking the product they have under leases to their country? Do we know for sure that the USa is charging a fee for that? I understand that in many cases of products brought into the USA from China that thee isn't even an import tax paid for us to make money here in the USA. When our US companies make products in China do they have to pay China an 'export fee' and then an 'import fee' to bring it into the USA? do you know.
this is recent online:
this link is informative about China with natural gas:
Hey, I am not against China purchasing our natural gas (it would be good for the US economy with export taxes)...I just think that there needs to be a 'watchdog' over to whom our natural resources via gas/oil leases are being assigned to....for the love of money is the root of all evil. We have a need to maintain our energy supplies for US citizens first and foremost. And by the oil companies seeking to make a good profit they are sending these flimsy leases they signed with the Landowners here in America to foreign countries with an 'assigns' clause that could end up with N. Korea buying them if they wanted to assign them to them. Does anyone understand the complexity of this? especially with these openended leases that can be extended for many years based on shut-in, etc.?
VG , I do not know anything about export fees, but thanks for asking.
I do however want to address a phenomenon I gather here on this site and also in our economy. It seems that everyone fears or abhors China in regards to economic affairs, almost as if they wish to conquer us. This feeling is not expressed with Europe or any other economic power; infact this attitude even existed against America Japanese during WWI. That being said, I do not feel it is racial but more fear of the exotic and unknown. Anyway, having grown up in Asia, they are simply following what we have taught them in our global quest to spread free enterprise. Truth be told, they wre capitalist thousands of years before we were.
It is not that people do not especially like China ...many do not understand China, they have not been there or read about them. It is that when we pick up almost anything at any time, 'it says made in China" ...that is why people are upset. Many of our U. S. companies found that going to China and hiring employees there was at a way reduced wage hour difference....so they built companies over there and started exporting from China to the USA. But the Chinese government didn't just sit by and say oh great, how wonderful...they started imposing more taxes on the goods and I just read this link about that:
http://247wallst.com/2010/11/11/liquefied-natural-gas-from-us-heade... (and I found this one of interest)
So now after several years and some U.S. worker is now either laid off/ receiving unemployment and his/her competition is either a robot here in the USA or a man/woman worker in China or another foreign country. Meanwhile this caught our government off guard..busy fighting wars while the free enterprise system went amock overseas (much money). Do you know that a worker in India makes about 1000. US dollars a month on a min. wage job? Corporations like to pay those low wages...yet how is it that Indian companies (INDIA) can purchase the Marcellus shale leases? Something indeed is off balance in equal and fairness.
Did you ever want to give out Christmas gifts and you didn't have any money to spend so you asked your parents or teachers what to do? And they responded, "go home and make your own gifts"....so you find yourself making the gifts rather than going to the store. Well, it is time for us in the USA to go home and make our own goods.....yet the American companies over in these other countries do not always want to go back to the USA once they have tasted the profits abroad....meanwhile our US dollar is not as worthy as it used to be.
I haven't decided yet who to vote for...but some of us aught to pay attention to Rick Santorum, though he may be low on the polls.
ideas on the industry growth for america. He has something about that on his website I think, so here is the link (he stated he did and I haven't looked yet...but it is that he understands the problem). I heard him state the need to introduce incentatives to bring US. corporations back to the USA to hire U.S. workers. I just happened to listen to his speech on that...I think all the candidates should have a plan for bringing industry back alive in this country.
I guess this is one way I am saying that there is a clog in the system of trade right now...and yes you are right ...the USA is missing out on revenues that would help the economy. Some are working on the problem being solved though...that 's the good news...but more need informed as why we got the problem to begin with.
Ron, to put it in layman's terminolgy (if i understand it right)...
When a US company is in China and exporting to the USA its products then the Chinese benefit from the 'export taxes' being paid.....yet the U.S. companies are not having to pay China an 'import tax' to China if they make the product there in China to sell to the Chinese...and when they started doing this many years ago the U. S. companies were finding that the tax system and the wage system was so low compared to the USa that they continued their growth in these foreign countries...but at the same time the governments of those countries were learning how to make profit off of the business of exporting to the USA (much profit) and learning that the USA wasn't paying too much attention to how they were taking in the 'lions share' of the market...and now we have a society in America purchasing products , 'made in China'. So in one way the US free enterprise companies were growing in prosperous times by making such a move (but it wasn't supporting the USA just them)...but at the same time they didn't fully realize what the loss of them being in our country was doing to the economy nor did some really care. Yet this is how America became as great as it has been...the industrilization of America and 'exports' of goods/services. And this is why China now is the world's largest 'exporter' of goods....now some other countries though are picking up in their 'exports'.
This is also why I have the question that if China decides to sell natural gas from within the USa using their purchased lease rights on american soil...they will not have to pay any import taxes that way...and will they have to pay an 'export tax' to send the NG over to China (or maybe since they bought so much of our tax debt they may have made deals like free rides in a monopoly game).
hey, this is interesting regarding the topic of discussion you have started here:
my question to Chesapeake CEO is why sell the leases overseas if you don't want to export the natural gas...won't the foreign countries make the profit off the sales anyway by owning the shares of the leases (which the landowner didn't know would happen when they negotiated a small amount compared to what the oil companies sold their leases for). Think about it...Chesp CEO doesn't want it to really come to exporting the NG overseas...yet they will be glad to sell the leases they did with US citizens overseas for them to profit in the sale but ultimately the foreign country company is now in contol of the profit of the NG being produced....some of us might even get royalty checks from China depending on how much of the lease they purchased.
Fellow Landowners, I blew this whistle awhile back, now look at the price of NG. We need to export this energy and start manufacturing CNG cars, NOW!
Actually, I remember the '60s and 70s when Japanese electronics and cars were coming here in droves. People were saying we won the war but will lose the country to the Japanese.
Then came the 80s and all the money was going to the Arabs and people said we were going to lose the country to the Arabs.
And people fear the Hispanic and/or the Muslim takeover of the country.
Its normal for people to fear change and the unknown.
Don't fear China, they have destroyed their water and air so badly that they are going to face huge problems. Plus their one-child-per-couple rule will result in their having a very old population in a decade or two....one too old to be supported by the working generation. In 20 years they will collapse.
People.............NG prices continue to plunge............exporting is the the answer to more drilling, leasing and progress.
I guess this means that all of you pro-drilling can no longer use the "energy independence" argument as a valid reason to support your actions? Either the energy for for the free market or its for American energy independence, but it can't be both at the same time.