LNG decision by Biden IS political!
2 responses | 0 likes
Started by metmike - Feb. 7, 2024, 1:08 p.m.

This article is pay walled )-:

This was ABSOLUTELY POLITICAL and is the biggest reason for NG prices to have just managed to trade sub $2, despite colder weather coming up this month!

Biggest Gas Producer Slams Biden’s LNG Freeze as Political Stunt



Presidential Elections And Biden’s Gas Export Pause


He secures approval from climate supporters who consider the pause an important step in combating global warming (primarily due to methane fugitive emissions associated with gas liquefaction and transportation). But he provokes the anger of fossil fuel supporters who view the pause to be destroying jobs and undermining energy security. The gas export pause means that Biden assessed the electoral payoffs of appealing to climate voters to be higher than vote losses in fossil fuel communities and some blue-collar voters.


The good thing about this is that it keeps more US gas at home and REDUCES demand which adds to the current glut in supply/storage.

However, producers WILL cut back on the rig count and production. THEY WILL because thats what they have always done when supply outstrips demand in order to force a new balance in demand/supply that supports HIGHER PRICES and more reward.

So the lower prices will be somewhat temporary. Longer term, there are many items that will influence the demand/supply dynamics/fundamentals.

Let me illustrate this dynamic below.

During the COVID pandemic in 2020, Industrial demand for natural gas dried up and the surplus in storage was huge, resulting in prices crashing below $2. Note what producers did to cut back on supplies to force prices higher to make their investments profitable.

It not only worked but it backfired onto consumers when US demand came roaring back but supplies were unable to match it. In addition, exports soared higher, especially from Biden's war in Ukraine, so in 2022, just 2 years after historically low prices below $2, the price of natural gas more than quadrupled at the end of the Summer in 2022.

The cure for high prices? High prices!! Producers responded to the financial incentive by gushing out record supplies in the Fall/Winter of 2022/23 that included an increase in the rig count and by utilizing supplies  from wells already tapped but not producing gas BEFORE the price hit $9.

That new supply caused ng in storage to increase by the greatest amount vs the previous year and the historical average in history by a very wide margin. You can see the price crash the past 18 months.



Below, is a look back 30 years.  After the 1990's, prices below $2 don't last long. Horizontal fracking of shale gas, starting  15 years ago has also put a lid on the upside as described above because it can unleash massive new production that starts gushing in just months later, when the past would take many times longer than that(offshore drilling/production).

By metmike - Feb. 7, 2024, 1:15 p.m.
Like Reply

Here's more proof that this was ENTIRELY political for the fake green energy appeasement/votes and for the very short term spike lower in ng prices ahead of the election(this is not just my opinion, it's the proven fact here):

Myth vs. Fact: Biden's LNG Export Ban

Feb 05, 2024



Here' the super long version is you've got a spare 3 hours with nothing to do (-:

I haven't watched.

Politics Over People: How Biden’s LNG Export Ban Threatens America’s Energy and Economic Security


By metmike - Feb. 7, 2024, 1:29 p.m.
Like Reply

Biden’s misguided LNG pause follows Carter’s path to a one-term presidency


by Oliver McPherson-Smith, opinion contributor - 02/07/24 10:35 AM ET



Compare all those REALITY checks by credible energy sources earlier (and fundamental facts) with the total opposite  spin that the White House put out when they made this decision:

WHAT THEY ARE SAYING: Leaders Praise Biden-⁠Harris Administration Pause on Pending Decisions of Liquefied Natural Gas Exports



Crystal clearly we can see the White Housing using this for political ammo, to generate green votes in November. 

Keep in mind that there is no climate crisis. The current AUTHENTIC, SCIENTIFIC state of the climate in 2024 is an OPTIMUM for most life on this planet, including humans. 

Latest thread to indisputably prove that( for the 100th+ time) with data/facts evidence from the atmospheric scientist/moderator here:

                IPCC ?            

                            7 responses |           

                Started by 7475 - Feb. 4, 2024, 8:08 p.m.