printAs America, led by the mindless media, fusses and frets over the parasites and the prostitutes—the poor women have been stiffed by the worms, as in not always paid for services rendered—news comes, via the SPPI Blog (hat tip to Roger Chaillet), that BHO has surreptitiously issued a Presidential Executive Order:
The Supporting Safe and Responsible Development of Unconventional Domestic Natural Gas Resources Executive Order seeks to create what amounts to a Presidential super committee that will oversee the regulation and development of the ‘unconventional’ natural gas industry for the purpose of ensuring a long-term natural gas supply for the United States, as well as to do so in a safe and environmentally responsible manner.
Expect energy costs to go up some more, although the last is the least of our problems.
Natural Gas is to cheap, so the government control freaks will regulate the industry to death so the price will rise , no way can we have affordable & competitive energy market !
To the Ecofreaks out there , what can be more Eco friendly than ( Natural ) Gas LOLLL !!!!!!!
BHO is probably worried that word might get out how cheap natural gas is. Who knows, perhaps the idiocracy might even catch on that they’re being scammed. Money is being funneled to pet (read crony) contributors for “wind” and “solar”. Meanwhile we have a glut of clean burning and cheap natural gas. Here’s a link to an article on natural gas and how we have so much of it, we’re actually running out of storage space for it: http://www.npr.org/2012/04/17/150766635/u-s-has-a-natural-gas-problem-too-much-of-it
I remember back when gasoline shot up in the 70’s. The local farmers converted their vehicles to clean burning and cheap propane. The government couldn’t have that so they jacked the permit and tax rates up to make the price the same as gasoline. What BHO is ordering (do we even have a congress anymore and if so, why?) will have the same end results: natural gas prices for the end users will artificially go up, demand will thus be suppressed even further, and prices for the producers and well holders will be forced down even further. The parasites get richer while everyone else gets poorer.
When this disingenuous, obvious, agenda driven phony pontificates on anything to do with energy or health care or anything else in the real world I am wonder-struck by the number of people who actually take him as a serious player. He has proven time and again he doesn’t know squat about much of anything and there’s no reason to believe that he would actually take a position except to B S the public toward his goal of rebuilding the country in his socialist image.
There’s another natural gas story developing here. General Motors and Dodge will be coming out with realistic dual fuel consumer trucks within the year. http://www.mlive.com/auto/index.ssf/2012/04/gm_bi-fuel_gmc_chevy_compresse_1.html has more information on GM’s vehicle. They will use both gasoline and natural gas. Natural gas tractor trailers are also being built. See http://www.environmentalleader.com/2011/02/25/ups-adds-to-its-natural-gas-truck-fleet/. GM will charge $11,000 more for their truck. I expect that price to very quickly drop to the range of $4000 or less.
Here’s why. Conversion kits are available online for roughly $1000.00 excluding the tank. I knew a guy 17 years ago who claimed to have converted his Chevy truck which he showed me for about $800.00 using his labor. After market garages will compete with the car companies and force the price down.
Let’s look at the payoff period. While natural gas prices will vary my take on the market is that the cost per mile could easily be half or less as compared with gasoline. Assume a vehicle getting 18 miles per gallon traveling 15,000 mile per year and gasoline at $3.75/gallon. That’s a gasoline cost of approximately $3125.00 per year. If we assume a natural gas effective cost of one half of gasoline we have roughly a two and a half year payoff period after which the savings more than $130.00 per month. If the buyer of the vehicle finances with a 90% loan at 7% interest for 72 months, his net cash flow on the vehicle will be substantially positive versus a gasoline vehicle within a couple of months and remain so. Economics will encourage many people to buy these sensible dual fuel vehicles and car companies will be encouraged to manufacture them when they see the demand. If the president damages the domestic natural gas market, foreign markets will ship us natural gas by refrigerated tanker as they have in the past. Many off-shore pumping stations have already be built.
Here’s where in gets even more interesting. Eventually a tipping point will be reached as more and more people buy these vehicles here and eventually around the world. They are already available in places like Thailand and Iran. OPEC will realize that they will one day lose their ability to control oil prices by withdrawing some of their supply when the world can switch from one fuel to another with dual fuel vehicles. OPEC is not stupid. I expect that they will add supply of oil years before they expect to lose that power thereby lowering the price in order to discourage further exploration for natural gas and further erosion of the price they can get for their product.
I believe we are looking at the first stages in the end of OPEC’s power and relevance being accomplished by the market–not by government.
A couple of years ago, I considered a natural gas vehicle. At that time I found that natural gas was twenty percent cheaper per gallon (equivalent) However, it was also twenty percent less efficient. Therefore, I saved my thousand bucks investment. The benefits of natural gas are in that it is cleaner,less polluting and your engine should last longer. Plus, with the abundance of natural gas we have, we would not be dependent on foreign oil. Since it has so many environmentally good things it has going for it, it is only natural that the government is going to ignore it or regulate the hell out of it.