March 4, 2014
21ST CENTURY WHEAT:
Save the Ukraine By Exporting Natural Gas (Diana Furchtgott-Roth, 3/04/14, RCM)
A prescient House Energy and Commerce Committee report released last month, just in time for Russia's invasion of Ukraine, suggested that "by becoming a natural gas exporter, the U.S. can supplant the influence of other exporters like Russia and Iran while strengthening ties with our allies and trading partners around the world."President Obama does not want to use military force to counteract Russia. His 2015 Budget, due out this week, will shrink the military still further. But he has another weapon at his disposal, liquid natural gas exports.Congress and the president should without delay pass laws to make it easier to export liquid natural gas. Such laws would help our allies and hit Russia where it hurts, in the pocketbook.More than half of Ukraine's natural gas, and 30 percent of Europe's natural gas, is provided by Russia. Russia gets about half of its revenue from oil and gas. LNG is cheaper in the United States than in Russia, so increasing America's exports of LNG would lower Russia's profits.
Posted by Orrin Judd at March 4, 2014 11:33 AM