Natural gas exports: The Obama administration dithers while a global market waits

posted at 9:21 pm on October 15, 2013 by Erika Johnsen

Sometime after the federal government makes its way out of shutdown-mode and President Obama has some time to try to get back into Americans’ good books, we will undoubtedly find ourselves being treated to yet another of the White House’s now infamous “economic pivots” during which the president will pay an ungodly amount of lip service to the need to boost our economic growth above its currently all but stagnant level while simultaneously defending his heavy-handed and top-down policies that are actually keeping it there.

Well-paying jobs, the president will likely insist, are his top priority, and we may even hear a snippet of honesty about how the health of the oil-and-gas industry is contributing overwhelmingly to what economic growth we are seeing — but only a selectively presented snippet. It is infinitely less likely that any of the grand new ideas he will introduce will include an administrative fast-tracking of the natural gas export facilities for which energy companies and foreign markets are openly clamoring.

Here’s an apt example from Mississippi of the type of GDP growth from which the Obama administration is actively demurring, via the Associated Press:

Investors spent $1 billion building a facility in Pascagoula to import liquefied natural gas. But plans to bring natural gas into the United States collapsed when explorers began finding large quantities of natural gas in the United States.

Now, Kinder Morgan, the pipeline company that operates the facility, is trying to get approval from the U.S. Department of Energy to export natural gas to countries with which the United States doesn’t have free trade agreements.

Kinder Morgan Vice President Norman Holmes told the Southern States Energy Board on Monday that approval could spark as much as $8 billion of investment at the plant. The board approved a resolution calling on the U.S. Department of Energy and other regulators to ease and speed up licensing of export facilities.

“Export facilities like this are really going to unlock the true value of these new sources of energy,” said Doug Domenech, Virginia’s secretary of natural resources.

And this is a far cry from the only available example of the projects waiting on the Obama administration’s “deliberation.” The American Petroleum Institute has a handy interactive map made up to help visualize exactly what all these missed opportunities look like; click the pic to see the more than twenty pending applications waiting for the Obama administration’s approval, scattered from Georgia to Texas to Oregon:

 photo Screenshot2013-10-15at61213PM_zpsb945f48d.png

The Obama administration has approved several applications this year, but that’s out of the only four total they have approved total over the past five years. It’s well past time to get a move on.


Related Posts:

Breaking on Hot Air

Blowback

Note from Hot Air management: This section is for comments from Hot Air's community of registered readers. Please don't assume that Hot Air management agrees with or otherwise endorses any particular comment just because we let it stand. A reminder: Anyone who fails to comply with our terms of use may lose their posting privilege.

Trackbacks/Pings

Trackback URL

Comments

The Obama administration dithers while a global market waits

F*cking Republicans. *grumble grumble*

Midas on October 15, 2013 at 9:26 PM

Yup, drive the price up for energy at home by sending it out of country. Good plan. Make sure our grand children are left energy poor.

astonerii on October 15, 2013 at 9:27 PM

Ted Cruz blowing it again. Damn him, damn that man!

Bishop on October 15, 2013 at 9:29 PM

Did you just say “dither”?

Raaaacist!!!!!!!!!

hillbillyjim on October 15, 2013 at 9:31 PM

shilly–shally
intransitive verb

: to hesitate and take a long time to do or decide something

Diddle works too, in an urban dictionary kind of way. ;)

MichaelGabriel on October 15, 2013 at 9:41 PM

Obama blows off Natural Gas every time he opens his mouth..

It’s amazing he hasn’t self combusted yet..

Electrongod on October 15, 2013 at 9:46 PM

First they have to KILL coal. Then they’ll KILL natural gas. EVERYONE knows that wind and solar are “Winning the Future!”

King Barack said so!

GarandFan on October 15, 2013 at 9:47 PM

i assume that somewhere there must be a few sane Democrats…one would like them so speak out…but i guess they are afraid of retribution

r keller on October 15, 2013 at 9:52 PM

Obama has no intention of hurting his Saudi brothers…….

What are they going to eat? Sand? /s

redguy on October 15, 2013 at 10:02 PM

First they have to KILL coal. Then they’ll KILL natural gas. EVERYONE knows that wind and solar are “Winning the Future!”

King Barack said so!

GarandFan on October 15, 2013 at 9:47 PM

It’s a communist plot, I tell ya!!!!!

redguy on October 15, 2013 at 10:03 PM

Obama blows off Natural Gas every time he opens his mouth..

It’s amazing he hasn’t self combusted yet..

Electrongod on October 15, 2013 at 9:46 PM

…bet you JugEar’s a$s…. can go like a blowtorch too!

KOOLAID2 on October 15, 2013 at 10:10 PM

There are gianormous areas of natural gas in Texas that were being fracked in 2006-08 that aren’t right now because back then the gas was getting $8-$10 an mcf, and now it’s hovering under $4. Because the wells can go up to four miles down, it’s not economically viable to drill for gas at the current prices in those areas (unless you can extract other petrochemicals from the gas through evaporation), but it will be later, so supply near-term isn’t the problem.

The main issue coming up is going to be figuring out how to get gas in more economically viable drilling areas like the Marcellus Shale in Pennsylvania to foreign markets, and past the coastal environmentalists in the Northeast/Mid-Atlantic states. They’re the ones who are going to be getting the natural gas vapors over the idea of export facilities and pipelines from the fields to those facilities being built, and based on his actions with the environmentalists and the Keystone Pipeline so far, if Obama’s pressured, he’s simply going to opt to do nothing until his term expires in 2017.

jon1979 on October 15, 2013 at 10:14 PM

…bet you JugEar’s a$s…. can go like a blowtorch too!

KOOLAID2 on October 15, 2013 at 10:10 PM

I will get the sticks..
If you get the marshmallows…

Electrongod on October 15, 2013 at 10:15 PM

He’s not dithering, he’s running out the clock. Until those foreign contracts go elsewhere.

The Radiant Future runs on Holy Wind and Holy Sun. Period.

If you don’t get it, you can freeze in the dark.

Actually, that’s what everyone will be doing. Mud huts are a b!tch to heat, and The One and his minions are going to find out that castles aren’t much better. Those tapestries on the walls were to keep out drafts; they replaced muslin that didn’t look very dressy.

You are dealing with a mystical primitivist. Do not expect hm to behave rationally by your standards. In the fantasy universe inside his head, the laws of physics- especially the Laws of Thermodynamics- do not apply.

clear ether

eon

eon on October 15, 2013 at 10:23 PM

This chaos is deliberate. No one, not even this AA fool is that stupid.

neyney on October 15, 2013 at 10:26 PM

Obama hates all fossil fuels, of which natural gas is one, not because of any pollution or “unsustainability” factor, but because they promote economic growth and opportunity outside state power. He will act on gas as he has acted on oil and coal: to kill it or come as close as he can.

Yup, drive the price up for energy at home by sending it out of country. Good plan. Make sure our grand children are left energy poor.

astonerii on October 15, 2013 at 9:27 PM

So, restrain trade to create an artificial glut to depress domestic prices, depriving the owners of the gas of their ability to compete on the free market.

Commie.

Adjoran on October 15, 2013 at 11:23 PM

It’s not green energy. Communists only prefer to deal with recyclebles.

RdLake on October 16, 2013 at 6:42 AM

Obama leadership – an oxymoron.

sadatoni on October 16, 2013 at 8:33 AM

Yup, drive the price up for energy at home by sending it out of country. Good plan. Make sure our grand children are left energy poor.

astonerii on October 15, 2013 at 9:27 PM

So, extending that logic, we shouldn’t export anything?

I think some would disagree with that.

iurockhead on October 16, 2013 at 9:09 AM