LNG exporting discussion is increasing. Clearly the Oil & Gas industry is in favor of the initiative. On the other hand you have the Dow and Alcoa being concerned. Now the environmentalists have stepped in to denounce the plan. As I noted in my previous discussion on this subject last January I was more cautious on the level of exporting in the hopes that we could develop manufacturing and other creative ways of using a cheap and abundant resource. The question is to ask what is best for the country as a whole not to focus on certain questions as will it raise prices. A price rise is not bad in itself.
Since the last year, I have added my perspective by having intellectually challenging conversations with my many energy colleagues and friends. In general, I do agree with the premise that government should not be in the business of picking winners. My Oil & Gas industry friends will use this as instrument to justify their stance to export – not allowing exports you are picking a winning industry. As I noted before I think we should phase in the volume. In addition to staying true to avoid government picking winners – why are my Oil & Gas colleague not supporting my stance on auctioning of the export license in order to phase in the LNG export volume. Going site by site offers some element of picking winners. The US citizens should want to find additional funding for the government versus raising taxes and losing benefits. LNG export volume license would likely bring a decent revenue stream for the government and would avoid “picking” winners. Obviously the company that wins the license will still need to find an approved site along with approved technology which would pass environmental and safety needs.
I am always open to a discussion on merit. Please do send me email or feel free to comment below.
Your Open Thinking Energy Consultant,