Tuesday, August 30, 2011

Oregon Frackers Will Raise Prices & Destroy Environment

Backers of liquefied natural gas terminals see renewed hope on the Oregon coast - this time to export the new supplies drillers have uncovered by "fracking" shale formations.

The Oregonian newspaper reports that industry backers of the terminals two years ago laughed off the idea that they could use the terminals to export gas, but now they're talking about just that.

The paper says the economics could allow U.S. producers to double or triple their net by exporting to Asia rather than selling domestically.

That raises fears among some, including Oregon's two U.S. senators, that exporting domestic natural gas is a step toward making the market global and raising prices in the United States for a resource that's abundant domestically.

Asian demand is expected to increase, driven by economic growth in China and India, switching from coal to natural gas.

The Oregonian story says one LNG terminals on the Gulf Coast has gotten approval to retrofit an idle facility and another is seeking it, while British Columbia companies are contemplating multiple export terminals.

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