then a chart of world natural gas prices which I want to highlight this week because the free trade agreement with 14 pacific rim countries known as the Trans Pacific Partnership is back in the news, like this: Skeptics Aside, Obama Steams Toward Pacific Deal…we’ve discussed this before; if Obama gets fast track authority on trade, this agreement can be passed in nearly complete secrecy and without debate….among other provisions, it would mandate gas exports to the signatories, including Japan, and allow multinational corporations to sue states and localities whose environmental laws interfere with their right to profit, with adjudication not in our courts, but before an international tribunal dominated by those same multinational corporations…as you can see, gas prices in Asia and S America are roughly 4 times our domestic prices; should the export flood gates be opened, our domestic gas prices will quickly rise to approach the global price, and fracking for gas in areas of Ohio where it’s now unprofitable would become likely…
there's an also article on LNG exports later in this batch, specifically on how one can get filthy rich from the coming boom in gas exports to Europe..
• How LNG fits into the European energy picture
• Why LNG will eventually pressure Russia in Europe
• Why Gazprom is but a fragile giant
• How Russia combines gas and political influence in Eastern Europe
• How the European Union is easy to divide and conquer
• Why the Ukraine crisis has brought attention to the South Stream pipeline
• Why Bulgaria is the new front line
• How Lithuania succeeded in negotiating down Gazprom
• What Moscow’s Crimea annexation really achieved
• Why it’s game over for Gazprom prices when Turkey steps in
- Escalating Conflict in Iraq. Though the fighting is yet to affect oil production in Southern Iraq, uncertainty over how much havoc ISIS will create is driving up futures prices. Disruption in Iraq's production would substantially affect its heavy crude oil exports, the type of oil found in Canadian tar sands. If unrest continues in the region, Canadian oil could help replace lost supply with reliable, stable production.
- Approval of Canadian Pipeline. The Canadian federal government just approved its Northern Gateway pipeline project, which would send Canadian oil west for export to Asian markets. If the United States does not act quickly, Canadian oil will follow other paths to market. Northern Gateway, to be constructed by Enbridge, is not the preferred route, as the pipeline would transport fewer barrels of oil than Keystone XL in a less efficient way (it would cross rugged terrain and still need to be shipped to China for refining). Still, the Canadian government’s pro-growth energy policy stands in stark contrast to that of the United States, which is characterized by inconsistencies and lack of certainty.
- Senate Committee Moves Bill. Led by Senator Mary Landrieu (D-LA), The Senate Committee on Energy and Natural Resources passed a bill that would bypass the State Department and approve Keystone XL. Senator Landrieu is facing a tough reelection battle and the vast majority of Louisiana residents support construction of the pipeline. Senate Majority Leader Harry Reid (D-NV) is opposed to Keystone XL, but he may decide to bring the bill to the Senate floor in an attempt to keep his majority after the midterm elections..