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Natural Gas: Transport Or Export?

Seeking Alpha -- In spite of surging US oil production, average gasoline prices in 2012 were the highest on record ($3.37/gal). This was a result of three primary factors:

US companies are allowed to export refined product
US gasoline is therefore priced off of International oil prices (Brent)
Average Brent prices also averaged a record high in 2012

Meanwhile, US domestic natural gas prices continue to sell at a huge discount to worldwide oil and natural gas prices. This is summarized by the historical price chart below (courtesy of Argus):

Clearly US natural gas reserves, combined with its 2 million+ miles of natural gas pipelines which distribute it to every major city and 63 million homes, is a huge economic advantage for America. Some believe it to be this country's #1 economic advantage ove

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Submitted Feb 24, 2013 By: mastermariner

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Straitliner Champion Author Illinois Posts:1,640 Points:265,000 Joined:Sep 2012	Message Posted: Feb 25, 2013 6:26:50 AM Ignore Straitliner Report Abuse Okay.
bvrbill Champion Author Eugene Posts:3,436 Points:545,250 Joined:Jul 2011	Message Posted: Feb 24, 2013 11:07:34 PM Ignore bvrbill Report Abuse No one is looking out for what is best for middle class Americans. Not big oil. Not our elected officials.
Gas_Eyes Champion Author Dallas Posts:2,812 Points:671,585 Joined:Mar 2011	Message Posted: Feb 24, 2013 1:06:03 PM Ignore Gas_Eyes Report Abuse The cost of natural gas is too low compared to prices outside the US. A healthy price will promote more exploration.
fuel2use Champion Author Seattle Posts:3,609 Points:757,945 Joined:Dec 2010	Message Posted: Feb 24, 2013 12:17:11 PM Ignore fuel2use Report Abuse Cost a lot to hook up to.
streetdesign All-Star Author Illinois Posts:672 Points:602,350 Joined:May 2011	Message Posted: Feb 24, 2013 10:56:35 AM Ignore streetdesign Report Abuse Does not make any sense but that doesn't matter. Natural gas is cheaper now but speculators and greed will eventually find it's way into pricing. Sad but true.
Rockyguitar Champion Author Tampa Posts:2,688 Points:1,228,095 Joined:Sep 2008	Message Posted: Feb 24, 2013 7:56:53 AM Ignore Rockyguitar Report Abuse A lot of greed and B S, o yes, and devalued dollars at play here.
SUPERSTEVIEO Champion Author Quebec Posts:3,523 Points:787,115 Joined:Oct 2010	Message Posted: Feb 24, 2013 7:38:22 AM Ignore SUPERSTEVIEO Report Abuse and what can we do???? NOTHING.......
SUNOIL Champion Author Toledo Posts:5,380 Points:1,951,980 Joined:Jul 2007	Message Posted: Feb 24, 2013 7:31:36 AM Ignore SUNOIL Report Abuse We will have no say in this
JamesCalvin Champion Author Lancaster Posts:3,339 Points:546,280 Joined:Nov 2011	Message Posted: Feb 24, 2013 7:28:06 AM Ignore JamesCalvin Report Abuse Burn!
humblepie Champion Author Toledo Posts:35,301 Points:2,398,095 Joined:Mar 2006	Message Posted: Feb 24, 2013 6:11:57 AM Ignore humblepie Report Abuse no petroleum product exports period i say
molebaby96 Champion Author Tallahassee Posts:2,173 Points:528,255 Joined:Nov 2011	Message Posted: Feb 24, 2013 5:43:54 AM Ignore molebaby96 Report Abuse Need for NG vehicles now.
greshams Champion Author Cincinnati Posts:2,146 Points:402,355 Joined:Nov 2011	Message Posted: Feb 24, 2013 1:39:25 AM Ignore greshams Report Abuse why not take care of our own before exporting.
rjr54 Champion Author Winnipeg Posts:1,115 Points:395,370 Joined:Feb 2005	Message Posted: Feb 24, 2013 1:30:32 AM Ignore rjr54 Report Abuse As a Canadian, it should be noted that a lot of our natural gas is already exported to the USA.
JeffNStef All-Star Author Montana Posts:882 Points:1,622,100 Joined:Oct 2007	Message Posted: Feb 24, 2013 1:29:03 AM Ignore JeffNStef Report Abuse right on snagged, keep it here.
CivicMA Champion Author Boston Posts:2,035 Points:561,620 Joined:Jun 2011	Message Posted: Feb 24, 2013 1:28:20 AM Ignore CivicMA Report Abuse We should sell it in the US until all needs are met before exporting.
GoGoGoodyear Champion Author Los Angeles Posts:2,117 Points:530,075 Joined:Mar 2010	Message Posted: Feb 24, 2013 1:26:17 AM Ignore GoGoGoodyear Report Abuse That article is spot on. Our elected leaders are all bought and paid for so us regular folks don't have a chance. This country will squander away yet another opportunity to improve it's economy -and- the environment at the same time! When (not if) gas prices go up and power companies start going back to using coal, all of our electric bills will go up due to the costs of smoke reduction equipment and those new carbon credits that power companies must now buy. Guess who uses lots of electricity? Factories. Gives them yet another reason to send jobs out of the US. Don't expect wind and solar to make up the difference either. How many years have wind/solar been around? How many coal or gas power plants have been able to shut down because wind/solar was making up the difference? And just wait until there is a disaster at an LNG export facility where they pump the stuff into cargo ships. It will make the BP oil spill look like a day at the beach. Remember the recent disaster where a natural gas pipeline exploded and took out an entire neighborhood? That was just one ruptured pipe.
roadrunnerMO Champion Author Kansas Posts:8,542 Points:1,726,190 Joined:Jul 2008	Message Posted: Feb 24, 2013 1:24:29 AM Ignore roadrunnerMO Report Abuse Keep it here and continue building infrastructure to expand into automotive industries.
Bezalel Champion Author Oklahoma City Posts:12,228 Points:2,317,335 Joined:Oct 2006	Message Posted: Feb 24, 2013 1:24:21 AM Ignore Bezalel Report Abuse Stop subsidies until All refined product stays here!
snagged Veteran Author Akron Posts:416 Points:120,530 Joined:Oct 2012	Message Posted: Feb 24, 2013 1:23:53 AM Ignore snagged Report Abuse The worst blog I've seen. This was written by Obama. Yuk
TripleHs Champion Author Austin Posts:3,435 Points:940,090 Joined:Oct 2009	Message Posted: Feb 24, 2013 1:22:55 AM Ignore TripleHs Report Abuse it depends on the demand and supply
TXGasPriceSpy Champion Author Fort Worth Posts:7,952 Points:1,499,000 Joined:Sep 2008	Message Posted: Feb 24, 2013 1:20:12 AM Ignore TXGasPriceSpy Report Abuse I've always liked Seeking Alpha.
wz Champion Author Twin Cities Posts:2,620 Points:1,303,960 Joined:Feb 2009	Message Posted: Feb 24, 2013 1:19:47 AM Ignore wz Report Abuse Natural gas is already making inroads into the transportation industry. Its biggest drawback at this point is the lack of a public infrastructure to refuel natural gas vehicles. With the relative price so low compared to gasoline and diesel, the potential savings will provide the funding that will build that infrastructure until natural gas stations are as readily available as diesel (the primary fuel it will replace).
arinkrat17 Champion Author Twin Cities Posts:6,420 Points:1,357,975 Joined:Aug 2009	Message Posted: Feb 24, 2013 1:19:08 AM Ignore arinkrat17 Report Abuse Ok
hawkman74 All-Star Author Dallas Posts:713 Points:470,745 Joined:Sep 2011	Message Posted: Feb 24, 2013 1:18:54 AM Ignore hawkman74 Report Abuse Nah - keep it here.
hawkman74 All-Star Author Dallas Posts:713 Points:470,745 Joined:Sep 2011	Message Posted: Feb 24, 2013 1:18:07 AM Ignore hawkman74 Report Abuse Could we join opec ?
arinkrat17 Champion Author Twin Cities Posts:6,420 Points:1,357,975 Joined:Aug 2009	Message Posted: Feb 24, 2013 1:17:57 AM Ignore arinkrat17 Report Abuse Ok
Rich1430 All-Star Author Indiana Posts:764 Points:277,500 Joined:Mar 2012	Message Posted: Feb 24, 2013 1:15:23 AM Ignore Rich1430 Report Abuse Take our oil off the Stock Market. That should lower the prices at the pump. Drill for, refine, keep and use our gas, natural gas, all oil products here, any excess can be exported.
Mowerman08 Champion Author Milwaukee Posts:4,877 Points:1,243,235 Joined:Aug 2008	Message Posted: Feb 24, 2013 1:14:57 AM Ignore Mowerman08 Report Abuse stop exporting gas, points to oil company greed
djp071158 All-Star Author Detroit Posts:803 Points:319,725 Joined:May 2012	Message Posted: Feb 24, 2013 1:14:39 AM Ignore djp071158 Report Abuse Keep it here.
mcbrownie220 Sophomore Author Toledo Posts:225 Points:173,875 Joined:Jun 2012	Message Posted: Feb 24, 2013 1:12:38 AM Ignore mcbrownie220 Report Abuse hmmm
mfeldstein Champion Author Ottawa Posts:8,296 Points:1,955,255 Joined:Feb 2007	Message Posted: Feb 24, 2013 1:11:28 AM Ignore mfeldstein Report Abuse It ain't natural. Ban fracking.
kd5kpd Champion Author Texas Posts:3,872 Points:1,443,450 Joined:Apr 2006	Message Posted: Feb 24, 2013 1:09:56 AM Ignore kd5kpd Report Abuse Drill here keep here & only sell any excess product!!!
10k Champion Author North Carolina Posts:21,480 Points:2,280,745 Joined:May 2006	Message Posted: Feb 24, 2013 1:09:26 AM Ignore 10k Report Abuse RENEGADE: great point..
Thomtec Champion Author Nashville Posts:2,595 Points:634,420 Joined:May 2011	Message Posted: Feb 24, 2013 1:08:33 AM Ignore Thomtec Report Abuse Both
DirtDauber Champion Author San Antonio Posts:6,917 Points:1,654,185 Joined:Nov 2005	Message Posted: Feb 24, 2013 1:07:06 AM Ignore DirtDauber Report Abuse At these prices, the customers will stop buying more than just what is necessary.
JaegerWMeister All-Star Author Twin Cities Posts:910 Points:364,365 Joined:Mar 2012	Message Posted: Feb 24, 2013 1:06:45 AM Ignore JaegerWMeister Report Abuse Good article
gasmack Champion Author Ventura Posts:1,752 Points:679,840 Joined:Feb 2011	Message Posted: Feb 24, 2013 1:05:29 AM Ignore gasmack Report Abuse We'll see. Hopefully someone will take corrective action if necessary.
Ron77095 Champion Author Houston Posts:3,195 Points:629,400 Joined:Sep 2011	Message Posted: Feb 24, 2013 1:04:37 AM Ignore Ron77095 Report Abuse ok.
RENEGADEGAS Champion Author Missouri Posts:15,064 Points:1,617,850 Joined:Jul 2008	Message Posted: Feb 24, 2013 1:03:25 AM Ignore RENEGADEGAS Report Abuse Dont matter to me as we dont use it. Just keep in mind, we only have about 100 years of natural gas as of last year and thats based on the usage rate of last year as well. The more things we convert to natural gas and the more we use it the less time we will have it.
krobp46 Champion Author Milwaukee Posts:2,853 Points:567,595 Joined:Sep 2011	Message Posted: Feb 24, 2013 1:03:19 AM Ignore krobp46 Report Abuse Both
melvindale Champion Author Michigan Posts:1,438 Points:351,230 Joined:Jun 2011	Message Posted: Feb 24, 2013 1:01:40 AM Ignore melvindale Report Abuse Both.
nurdco Champion Author Colorado Springs Posts:9,377 Points:1,721,135 Joined:Apr 2008	Message Posted: Feb 24, 2013 1:00:11 AM Ignore nurdco Report Abuse Export for profit...
abacus44 Champion Author Toms River Posts:3,600 Points:773,040 Joined:Jan 2011	Message Posted: Feb 24, 2013 12:59:03 AM Ignore abacus44 Report Abuse Reading comments, ????
Vette1967 Champion Author Albany Posts:6,102 Points:1,302,725 Joined:Jun 2009	Message Posted: Feb 24, 2013 12:58:39 AM Ignore Vette1967 Report Abuse It's a matter of who will pay more.
Double_Golden Champion Author San Francisco Posts:2,690 Points:631,885 Joined:Aug 2011	Message Posted: Feb 24, 2013 12:55:55 AM Ignore Double_Golden Report Abuse it should keep it in house to lower gas prices, if we have extra, then export...
yonasb Champion Author Houston Posts:3,463 Points:757,250 Joined:Apr 2011	Message Posted: Feb 24, 2013 12:54:51 AM Ignore yonasb Report Abuse i wander why the price is going up
DrGasPain Veteran Author Dallas Posts:362 Points:477,800 Joined:Mar 2011	Message Posted: Feb 24, 2013 12:54:13 AM Ignore DrGasPain Report Abuse I think the answer has to be both, but how much?
Rageagainsttm Champion Author Tampa Posts:8,417 Points:1,926,910 Joined:Jul 2007	Message Posted: Feb 24, 2013 12:53:29 AM Ignore Rageagainsttm Report Abuse Yes and no.
probedude2 Champion Author Akron Posts:12,688 Points:2,406,930 Joined:Jun 2003	Message Posted: Feb 24, 2013 12:52:21 AM Ignore probedude2 Report Abuse Here's a hint: we're not gonna get any
unicornpmb Champion Author Buffalo Posts:8,626 Points:1,656,240 Joined:Sep 2005	Message Posted: Feb 24, 2013 12:48:28 AM Ignore unicornpmb Report Abuse The answer is determined with the profit.