Export US gas or keep it to reduce energy costs at home

An article in the Wall Street Journal (May 31, 2012) describes a US decision to hold exports of natural gas, whose generation capacity has grown rapidly. Countries like Japan want to use liquified US gas in the future to replace their nuclear power sources. But others want the US to focus on ways to stimulate US demand for natural gas thus decreasing the country’s dependence on foreign oil. Given that exports serve as a willing market for gas today, should they be prevented ? Should the US government charge for the energy independence in the future as exports are prevented now, to assist producers ? Are gas prices so low because the full cost of fracking has not been charged to producers ? Or is the steel pipe demand (discussed in earlier blogs) and associated jobs growth generated by the gas industry a sufficient societal benefit that compensate for the apparent pollution impacts ?

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About aviyer2010

Professor
This entry was posted in Operations Management, Supply Chain Issues, Sustainability and tagged , , , , , , . Bookmark the permalink.

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