America is missing out on one of the greatest economic arbitrage opportunities of all time. And it’s all because of Joe Biden’s moronic war on American energy.
Take a look at the graph below from the WSJ. The price of natural gas in Western Europe surged to more than $100 per million BTUs this Summer – a more than twentyfold rise in price since 2019. The Euro price has fallen, but it now sits at about $65.
Meanwhile, in the United States, the price has hovered around $8 to $10 per million BTUs. So the price in Europe, according to the WSJ, is about “eight times higher than the U.S. equivalent.” Adding in the costs of liquifying the gas and shipping it to Europe might add the price of U.S. oil by about $5. That STILL leaves a price to be fetched in Europe four times higher than here.
So why aren’t we becoming the Saudi America of natural gas? We have at least 300 years of natural gas thanks to the shale revolution. In some places like North Dakota, the drillers prefer oil and so they flare off the natural gas – in part because the pipelines and LNG terminals aren’t built out.
America became an energy powerhouse under Trump with ships leaving ports every day loaded with natural gas. Now in 20 months under Biden, we are an energy weakling.
This is costing the U.S. economy tens of billions of dollars a year and tens of thousands of jobs without ANY offsetting environmental benefit. (Because of the energy shortage Europe is moving to burning more coal and even firewood for heating.) Selling nat gas abroad would increase the economy and jobs, reduce the trade deficit, and make Europe LESS dependent on Putin for energy. It’s a no-brainer – which says a lot about the smarts of the Biden team.