Artwork by Jack Guyot - Astoria, Oregon
Article by Humber - Bloomberg.com
Apr 26, 2012 9:32 PM
Henry Hub futures rose 4.8 percent to $2.134 per million British thermal units as of 12:29 a.m. in New York. Japan, which has just one of its 54 nuclear reactors in operation since a March 2011 meltdown at its Fukushima Dai-Ichi plant, paid about $18.85 per million Btu in the first 11 months of last year, according to finance ministry data. At current U.S. prices, the Japanese partners will be able to sell their contracted LNG in the domestic market at less than $10 per million Btu, Kunio Nohata, senior general manager at Tokyo Gas, told reporters in Tokyo today.
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Bloomberg Reports warning from Dow chief that U.S. NG exports should not exceed 10%
Apr 26, 2012 9:32 PM
Henry Hub futures rose 4.8 percent to $2.134 per million British thermal units as of 12:29 a.m. in New York. Japan, which has just one of its 54 nuclear reactors in operation since a March 2011 meltdown at its Fukushima Dai-Ichi plant, paid about $18.85 per million Btu in the first 11 months of last year, according to finance ministry data. At current U.S. prices, the Japanese partners will be able to sell their contracted LNG in the domestic market at less than $10 per million Btu, Kunio Nohata, senior general manager at Tokyo Gas, told reporters in Tokyo today.
Read Full Article
Bloomberg Reports warning from Dow chief that U.S. NG exports should not exceed 10%
From KUNA.net - Japanese firms to participate in Australian LNG export project
14 comments:
Patrick, should the US establish a policy of not exporting any natural gas?
More specifically, do you believe Dominion Cove should not export natural gas?
Also, you mention "staggering profiteering". I am curious what your benchmark is for "staggering profiteering".
Perhaps you didn't read the article Glenn.
Try it, it may help shape your thinking.
Then again, read this
I did read the article and it did not re-shape my thinking.
So I ask again:
Patrick, should the US establish a policy of not exporting any natural gas?
More specifically, do you believe Dominion Cove should not export natural gas?
Also, you mention "staggering profiteering". I am curious what your benchmark is for "staggering profiteering".
Henry Hub futures rose 4.8 percent to $2.134 per million British thermal units as of 12:29 a.m. in New York. Japan, which has just one of its 54 nuclear reactors in operation since a March 2011 meltdown at its Fukushima Dai-Ichi plant, paid about $18.85 per million Btu in the first 11 months of last year, according to finance ministry data. At current U.S. prices, the Japanese partners will be able to sell their contracted LNG in the domestic market at less than $10 per million Btu, Kunio Nohata, senior general manager at Tokyo Gas, told reporters in Tokyo today.
Very good. I said I READ THE ARTICLE.
You still haven't answered my questions.
Electricity is still $100/megawatt hour. Do the math.
The answers are right in front of you Glenn and being the astute business type you attempt to convince us you are, they should be easy for you, of all people to deduce.
Being the astute business type that I am, I deduce the article and the math presented by it are not reconcilable in real world economics. So this is why I asked you to verify the article YOU brought forward. Do you stand behind this articles contents?
"The Article" and the others attributed in the post, all, stand on their own and, yes, I stand behind my opinion.
Again, you need to continue reading these articles, all.
What is your opinion?
I see an article without an opinion.
"Staggering Profiteering Potential:Sumitomo/Tokyo Gas Secures U.S. LNG From Dominion's Cove Point"
"An Article"?
I see three articles
And do you really believe, Glenn and expect us to believe that the market will wait 6 years for your Enron Clone/Calpine/Oregon LNG/Leucadia buddies to get that, now $6 billion, facility in place at Skipanon Point for them to sell Canadian, piped-in NG to Japan?
Is that your view as to how "Real World Economics" works Glenn?
Ok, three articles and no opinion. Oh wait, you did assume Oregon LNG is an Enron Clone. Please expand on what you mean.
You are making it complicated. The market goes up and down. 6 years is nothing. The market could be at an all time high or an all time low. Or even maybe somewhere in between. My personal opinion is the foreign market will continue demand natural gas as it moves away from nuclear power (for the short term anyway). So yes, I believe the foreign export market will be in play in 6 years (once again, my personal opinion)
So I ask again, do you believe it is wrong to sell commodity (in this case energy) to foreign countries?
My view is I do believe we should develop a coherent energy policy which includes importing and exporting energy products. Especially the proven energy products that are fossil fuels. My view is we are spending far too much tax payer money in the form of subsidies to wind, solar, etc. To continue doing so is bad economic policy at this point in time.
Your turn.
Excellent post Glenn with precisely the logic that justifies exactly why The Skipanon Pensinsula is not the place for any LNG Terminal for receiving or exporting NG under any conditions.
And by the way, the frenzy to profiteer off Japan's plight is fluid right now with Japan, right this very moment making deals for the long-term import of Natural Gas and Alaska is fluid with an LNG project/Trans-Canada connection to get their NG as well as Canada's most likely to an export facility that will, again, negate the need nor the wait for your OLNG friends to stuff that facility up this community's butt.
My view is that by the time this all shakes-out the U.S. will impose export cap limits on all NG exports, thereby limiting the "Wannabe's" and their ill-conceived schemes, Exxon Clone/Calpine/OLNG-Leucadia included.
Patrick, quit making it personal. Just trying to have a conversation. I know you are not a left wing liberal dingbat so quit spewing the venom as such.
I'm curious, you have mentioned a couple of times about OLNG/etal being an "enron clone" What do you mean by that?
Also curious how you arrive at a future export cap on all NG exports. I can see the liberal agenda trying to force something like this to curb our ability to trade freely with foreign countries. The true agenda to limit capitalism and make us all more dependent on government. I'll pass. Economically speaking, the more govt intervention and higher taxes, the less economic activity takes place.
So getting around full circle, the EPA and govt (politicians) are for the most part on your side on the LNG argument. That being said, history, supply/demand, and the fundamentals of equilibrium are on my side.
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