That's true, Bella, but it would also be good if the U.S. could find more ways to increase demand. There will be a lot of natural gas available for many years, instead of exporting a lot of it, we should develop ways to use it.
Just my .02.
We need to sell it on the open market. Of course we also need to develop domestic demand. If we sold it on the open market the price of natural gas would go up a good bit. The price of gasoline would go down a good bit. The overall cost of energy to the consumer would go down at least slightly. I believe the price of natural gas in 2008 may have been about $10.00 or more per 1000 cubic feet,
The USA will not be looking to increase demand so long as President Obama remains in office. It's not the President himself. Obama is rather sensible about this. It's his SUPPORTERS, his fruitcake anti-fossil fuel supporters, that are causing the problem.
The President tries to resist. But he is at least somewhat beholden to the fruitcakes because they voted for him!!
I find myself in the unusual position of agreeing with Frank Walker. Frank the President and the Democratic Senate are not the SOLUTION to our economic doldrums, they are the CAUSE of the problem and the ROADBLOCK to the solution.
Sam, I know you do not live in Pa./ or you just haven t read the last two weeks discussions here on GMS regarding Pa.,and our republican governor.
Bella..you asked about... why all the drilling? Because the gas companies can get much, much more money for the gas shipping it over seas. It will then create price competion globally, and eventually RAISE the cost of energy here in the U.S.( read about it in the Butler Eagle dated 6/19/13, as well as other newspapers/websites). There is even a gas co. in western pa that is asking the puc for a rate increase on it's customers to help pay for the cost of installing the new pipe lines to get this project moving forward.
Unfortunately there's more to it than just waiting out the low price environment. Many companies have commitments that they need to meet, whether to various stakeholders or shareholders. Many have invested large sums of cash and recouping some NOW is imperative. As well, leases must be renegotiated, permits expire, etc etc. Operators can ratchet back the activity, but sitting idle and waiting loses more money than selling gas cheap.
Additional food for thought!
Natural gas needs to be the fuel source for this country. It is much cheaper to produce, transport and store. The natural gas companies need to keep in mind that we need to lower the cost of energy in this country. people need to have incentives to use this product. General Electric has been developing an in home fueling station, along with the university of missouri, that will land to the public for around $500.00. The current cost for natural gas converted is around $.65 per gallon in my area. Just think what that would do for the ecomony. Do the math on this. Our country currently consumes more oil than any other country in the world. We import and buy domestically less than we consume! By the year 2020 we will double the consumption. We are #11 out of 11 top producing oil countrys in the world with only around 12% of the oil reserves in the ground. That does not count the shale oil. We have over 75% of the worlds shale oil. Things are going to turn around. This is the presidents ace in the hole for reelection! Keep spreading the word. He who has the gold rules! We will rule again! This country is awesome
Your questions shows you haven't been around long. That reminds me of a few years back when I was sitting at the local watering hole talking to another old timer. At that time time PA DOT was spending around $250 million to build a bridge across the Allegheny River to bascially nowhere. I said, "Bill, I wonder why we are spending that much money to build a bridge that just goes to old country road to a couple of farms?" Bill replied, "Shoot Ed, you don't think they're spending $250 million so me and you have a better way to get to Shop n Save, do you? No sir, there's somethin else going on." He was right. A couple of years later a coal mine went in just below that bridge.
So I'll answer your question the same way. You dont' think these gas companies are spending billions of dollars so me & you have a cheeper way to heat our homes, do you? They're gearing up to supply the world with high priced energy. Bottom line...$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$