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By Richard Fernandez

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Russia calls a halt

August 12, 2008 - 4:11 am - by Richard Fernandez
Joseph Somsel
2008-08-12 09:00:07

Steeple,

The East Coast of the US has a bigger supplier network for LNG but I seriously doubt that the US could export natural gas in any major way (some local supplies to bordering Mexico.) Only the Wyoming fields are expanding in significant volumes. We are drilling a lot more but each new well is yielding less gas. Freeing up offshore resources would help definitely but please don’t view this as a panacea – it is a valid political point but won’t reverse the underlying trends.

My key point is California, my home. The state has decided only natural gas, wind, and solar are allowed to provide new electric supplies. The latter two are bogus rent seeking, a waste of money, and a political diversion. Additional natural gas will come partially from Wyoming but we’ll be sharing that with the Midwest as the new pipeline east comes on line. The primary new supply will be Russian LNG landed in Mexico and piped into SoCal.

This is folly of the worst sort.