Comments on: The national interest and exports of energy http://www.exxonmobilperspectives.com/2012/06/07/the-national-interest-and-exports-of-energy/ Mon, 20 May 2013 18:52:16 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: bill cordeiro http://www.exxonmobilperspectives.com/2012/06/07/the-national-interest-and-exports-of-energy/comment-page-1/#comment-2201 bill cordeiro Thu, 05 Jul 2012 18:12:31 +0000 http://www.exxonmobilperspectives.com/?p=6256#comment-2201 Any references to "natural gas exports"(LNG)should be made in perspective to overall production percentages. The comparisons to the exportation by other countries to the US have comparisons to the total production of the commodity of said country. That being said, the export of domestic LNG by the US should be easily a factor LESS (far less) than 50% of total production. The oil producing countries retain their bounty, generally, for their own progress and economic values. I perceive that the big energy companies dealing with energy product export (lng) wish to maximize profits irrespective of domestic use and storage of natural gas product in any form. There should never be a disproportionate level of product export at the expense of domestic use....and THAT my friends, is the core issue with untethered export of natural resources. "Let those with much, not gather more, nor those without much, get less." Any references to “natural gas exports”(LNG)should be made in perspective to overall production percentages. The comparisons to the exportation by other countries to the US have comparisons to the total production of the commodity of said country. That being said, the export of domestic LNG by the US should be easily a factor LESS (far less) than 50% of total production. The oil producing countries retain their bounty, generally, for their own progress and economic values. I perceive that the big energy companies dealing with energy product export (lng) wish to maximize profits irrespective of domestic use and storage of natural gas product in any form. There should never be a disproportionate level of product export at the expense of domestic use….and THAT my friends, is the core issue with untethered export of natural resources.
“Let those with much, not gather more, nor those without much, get less.”

]]> By: Neil Lynch http://www.exxonmobilperspectives.com/2012/06/07/the-national-interest-and-exports-of-energy/comment-page-1/#comment-2153 Neil Lynch Thu, 07 Jun 2012 19:06:16 +0000 http://www.exxonmobilperspectives.com/?p=6256#comment-2153 I am OK with being in the category of, "rank hypocrisy". From a global corporate perspective, the economic premise of the article is appropriate. I feel we need to consider macro-economics, and long term, social responsibility. The distinction between exporting energy and exporting other products mentioned is that the other products are renewable. This is not a small distinction. The energy exports arguments are based on the consumption of non-renewable raw materials. The socially responsible side of me leans toward prolonging the availability of domestic fossil fuels for domestic consumption. There are, of course, other considerations. My preference in the presentation of the justification of exporting is: 1) we create wealth (actual production of good and services) through the extraction, transport, and processing of the raw material. 2) we create jobs, community wealth, pay taxes, and are productive citizens with the domestic production 3) we distribute the costs of overhead across a larger volume of product and recover much of that overhead costs from the sale of exported product 4) larger volume makes better utilization of our capacity to help lower the price we can profitably sell the product 5) Should an energy disruption occur, the excess capacity used to support the exports provides a buffer to insure adequate supply for domestic markets (simply by reducing the volume exported.) 6) The ability to leverage exports to handle disruption reduces the impact of disruptions from natural disaster, political upheaval, war, and seasonal demand. regards, Neil I am OK with being in the category of, “rank hypocrisy”.

From a global corporate perspective, the economic premise of the article is appropriate. I feel we need to consider macro-economics, and long term, social responsibility.

The distinction between exporting energy and exporting other products mentioned is that the other products are renewable. This is not a small distinction.

The energy exports arguments are based on the consumption of non-renewable raw materials. The socially responsible side of me leans toward prolonging the availability of domestic fossil fuels for domestic consumption. There are, of course, other considerations.

My preference in the presentation of the justification of exporting is:
1) we create wealth (actual production of good and services) through the extraction, transport, and processing of the raw material.
2) we create jobs, community wealth, pay taxes, and are productive citizens with the domestic production
3) we distribute the costs of overhead across a larger volume of product and recover much of that overhead costs from the sale of exported product
4) larger volume makes better utilization of our capacity to help lower the price we can profitably sell the product
5) Should an energy disruption occur, the excess capacity used to support the exports provides a… read more »

…buffer to insure adequate supply for domestic markets (simply by reducing the volume exported.)
6) The ability to leverage exports to handle disruption reduces the impact of disruptions from natural disaster, political upheaval, war, and seasonal demand.

regards,
Neil

]]> By: Drew Hemingway http://www.exxonmobilperspectives.com/2012/06/07/the-national-interest-and-exports-of-energy/comment-page-1/#comment-2151 Drew Hemingway Thu, 07 Jun 2012 18:27:51 +0000 http://www.exxonmobilperspectives.com/?p=6256#comment-2151 Another thing to consider is reducing the trade deficite in terms of cash. Increased gas exports means more cash flowing into the United States, instead of flowing out of the country. That means higher tax revenue for government. Then there is the secondary cash flow into the greater community as that cash is reinvested, distributed as dividends to shareholders, and doled out in payroll. Not to mention the increased investment mean increased operational activity, leading to new job creation with very high paying salaries. The compounding effect far outweighs the little savings by limiting exports. In fact we are already seeing natural gas heavy companies reduce drilling and shut-in existing gas wells until prices come up enough to be economic again. One way or the other, prices are going to come back up, so why not choose the option with the economic benefits? Another thing to consider is reducing the trade deficite in terms of cash. Increased gas exports means more cash flowing into the United States, instead of flowing out of the country. That means higher tax revenue for government. Then there is the secondary cash flow into the greater community as that cash is reinvested, distributed as dividends to shareholders, and doled out in payroll. Not to mention the increased investment mean increased operational activity, leading to new job creation with very high paying salaries.

The compounding effect far outweighs the little savings by limiting exports. In fact we are already seeing natural gas heavy companies reduce drilling and shut-in existing gas wells until prices come up enough to be economic again. One way or the other, prices are going to come back up, so why not choose the option with the economic benefits?

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