Passing Gas, part deux

I recently wrote about how US export restrictions on natural gas are distorting markets and creating inefficiencies and/or pollution both here and abroad.

Here, from the mighty WAPO is a great graphic showing the geographic price gaps in gas:

Image

You can see in 2004-2007, how the prices tracked reasonably closely. This was before the boom in American production, when we imported a lot of gas. Since the US production boom, US prices have fallen while European and Asian prices have risen, creating a big wedge that is being sustained, in a large part, by our export restrictions.

People, a 3-5 fold difference in the price of energy inputs can cause a lot of production distortions/inefficiencies.

It’s past time to just go ahead and let our gas out.

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