Larry Kudlow, Gas Bag

CNBC’s Larry Kudlow is campaigning for the exportation of natural gas. At 2:18 into the video below, Kudlow says:

“It’s a world market. So, if you’re exporting, there’s going to be global price setting just like there is in the oil business. Why would these natural gas prices explode?”

But it isn’t a world market. Natural gas has never been priced globally like oil because gas is much more difficult to transport. So, if Kudlow is not arguing his case from actual facts, what is he basing his case on? Answer: ideology. The same “free market” ideology that, when applied to banking, crashed the global economy in 2008.

I for one, would like to see an energy-independent America. Larry Kudlow does not. Like I say, Kudlow is not a patriotic American, but rather a patriotic globican.

With the growth of liquid natural gas (LNG) facilities, it is possible that natural gas would be priced globally one day. However, today, the USA has a huge advantage on gas prices over competing nations. From Reuters:

“Global LNG trading is much younger, and as a result of the immature market, LNG prices differ widely by region. Currently, North America benefits from the lowest gas prices at around $3.5 per million British thermal units (mmBtu), while Asian importers have to pay almost $14 per mmBtu for LNG imports.”

This makes it possible that some heavy industry might be able to move back to the USA. For example, energy intensive plants that make toys might come back from China.

Fracking has been a rare bright spot for the USA in recent years. If we are going to suffer the ecological degradation, however bad it may or may not be, we should definitely be keeping the benefits for ourselves. People like Kudlow are only for nation-building when the nation in question is not the USA.