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U.S. shouldn't bail out Europe with natural gas, Dow Chemical says

  • As U.S. lawmakers consider allowing more liquefied natural gas exports to help reduce Europe's dependency on Russia as an energy provider, Dow Chemical (DOW) says too bad; if Europe wants to reduce its need for Russian natural gas, it can - and should - produce the gas on its own.
  • "Europe has the resources and the capability to provide for its own energy needs," says a top DOW exec. "Just because they rejected nuclear energy and horizontal drilling and left themselves at the mercy of others shouldn’t create an obligation for us to bail them out."
  • Chemical companies and many manufacturers oppose the rush for more LNG exports, having benefited from cheap natural gas prices since the fuel is a key ingredient for petrochemicals used in making plastics and other components of manufacturing.
Comments (20)
  • Patent News
    , contributor
    Comments (1404) | Send Message
     
    who cares? who says net benefit of selling tens of billions or eventually hundreds of billions of canadian and american oil and gas won't be much more beneficial for north america AND EUROPE?
    27 Mar 2014, 03:58 PM Reply Like
  • kmi
    , contributor
    Comments (4305) | Send Message
     
    People care because of the universal agreement that natural gas exports will raise the domestic price, and thus the cost to all Americans for energy, as well as hurting US based business more broadly.
    27 Mar 2014, 05:02 PM Reply Like
  • Kevin from MN
    , contributor
    Comments (6) | Send Message
     
    DOW should drill for their own Natural Gas if they want to deny the current operators free market option to sell for the highest price. I find it hypocritical of DOW to want to artificiallly control natural gas prices by limiting the free market.
    1 Apr 2014, 11:02 PM Reply Like
  • awakeinwa
    , contributor
    Comments (348) | Send Message
     
    Europe and Germany have gone whole hog solar reducing their gas and oil dependence to begin with, thus the drop in gas prices of the last few years and Russia's plateauing oil revenues. Solar is getting order magnitudes cheaper and more efficient.

     

    For ex., California is not experiencing hydroelectric-induced energy shortages from their drought precisely because of its massive solar energy investments.

     

    Europe just needs to accelerate its alternative energy push and neuter Russia's increasingly irrelevant fleeting gas station services of which it relies on for its main dutch diseased source of GDP
    27 Mar 2014, 04:57 PM Reply Like
  • Vitali Tchalov
    , contributor
    Comments (20) | Send Message
     
    This sort of thinking is delusional, IMHO. Reading the following, for example, may help to understand the reality: http://wrd.cm/1i0zMo5
    Cheers,
    27 Mar 2014, 10:00 PM Reply Like
  • Jake2992
    , contributor
    Comments (831) | Send Message
     
    It's a simple fact that solar costs/watt have been halved since 2011. No one said anything about solar replacing all forms of energy, next time don't be so quick to spew insults.

     

    All energy planning is done with a very long time span in mind, that's the point. Solar capabilities today are defying the skeptics negative predictions of a few years ago, and will continue to do so.
    28 Mar 2014, 01:01 AM Reply Like
  • birder
    , contributor
    Comments (1242) | Send Message
     
    Let me see if I understand Dow's position. They don't want gas to be exported because they are afraid it will raise the price of their main feed stock. They want low prices. But wait! What about the natural gas producers? Wouldn't they on the other hand want exports since it would raise the prices they receive? What about those who heat with natural gas? Why are we not hearing anything from them? What about other industries that rely on natural gas, such as the glass industry? And then there is the electric utility industry. They are rapidly converting from coal to natural gas. If the price of natural gas increases, the price everybody pays for electricity will increase. Seems to me that there should be more than just one company weighing in on this issue.
    27 Mar 2014, 05:02 PM Reply Like
  • Alex10652
    , contributor
    Comments (27) | Send Message
     
    Very poorly written, but eventually I understood what you were trying to say, and I agree. Other chemical companies and industries such as steel and fertilizers are supporting Dow's position to limit exports of LNG, however I haven't heard much from utilities and consumers. Manufacturing and exporting finished products that use natural gas as an initial raw material will increase capital investment in the US, improve our trade balance and increase domestic employment.
    30 Mar 2014, 06:51 PM Reply Like
  • candyman
    , contributor
    Comments (5) | Send Message
     
    I agree with Dow's position on this. Exporting our LNG will end us costing all of us more.
    27 Mar 2014, 05:24 PM Reply Like
  • jpmj4847
    , contributor
    Comments (537) | Send Message
     
    Dow is a very good example of what is need for American (put us first), than any surplus... let the bidding begin. Yes I'm long and the boom is a shot in the arm for all of us. jpm4847
    27 Mar 2014, 06:21 PM Reply Like
  • Hendershott
    , contributor
    Comments (1612) | Send Message
     
    So for the good of the country DOW should get into the NG exploration and production business. What's stopping them?
    27 Mar 2014, 08:07 PM Reply Like
  • jpmj4847
    , contributor
    Comments (537) | Send Message
     
    Not my words. Dow is just one of many companies taking advantage of the low price of NG and reopening or building new plants. I thank this is very good for our economy and by the way Dow Chemical been in the production business for many years now. Free enterprise. jpmj4847
    27 Mar 2014, 09:30 PM Reply Like
  • Sakelaris
    , contributor
    Comments (1684) | Send Message
     
    The efforts to economically punish Russia are unraveling already.
    27 Mar 2014, 09:38 PM Reply Like
  • fanoffun
    , contributor
    Comments (99) | Send Message
     
    The greedy oil and natural gas companies will happily jack up our energy costs by 50% to supply Euroweenies who are addicted to Putin oil and gas. We say JUST SAY NO to exports!

     

    We would much rather see homeowners, business owners, and superior-managed companies like Dow providing American manufacturing jobs to be able to have affordable energy, rather than line the pockets of Exxon-Mobil, Chevron, and BP executives!
    27 Mar 2014, 10:09 PM Reply Like
  • macpherson
    , contributor
    Comments (33) | Send Message
     
    How inconsistent and shortsighted for an international firm like Dow Chemical to promote inhibition of foreign trade. There is a natural relationship of the price of a unit of energy in natural gas delivered to a user and the price of energy contained in a barrel of oil. This comparison has been disrupted by the natural restriction in oversea transport of gas, the temporary surplus of domestic natural gas, and the price imposed by Russia on the European market.

     

    Equilibrium price will arise when our market is expanded with the continued low price and opened to increased export, and as Europe is supplied with local production of natural gas from Romania and Poland. Dow Chemical knows that the incoming tide of a free market for natural gas will affect all prices, and they will eventually be paying more for domestic gas with or without exports.

     

    28 Mar 2014, 05:58 AM Reply Like
  • Alex10652
    , contributor
    Comments (27) | Send Message
     
    Macpherson,
    There is no global equilibration in natural gas prices, certainly not in the short or medium term. The natural gas markets are regional in nature. Unlike crude that is easily shipped, natural gas requires building of extremely expensive and quite environmentally unfriendly LNG terminals.
    By the way, Romania and Poland have their own energy supply challenges and they are net importers of natural gas. I am not sure where you get your information.

     

    Moreover, the chemical industry is prepared to pay higher prices for natural gas as domestic demand increases. However, significantly higher NG prices that will result from exporting large amounts of LNG will make the investments chemical producers are currently making unattractive. These capital projects represent thousands of new jobs here at home.
    2 Apr 2014, 03:35 PM Reply Like
  • SOTRUECARL
    , contributor
    Comments (2) | Send Message
     
    Amen, Bro
    28 Mar 2014, 06:08 AM Reply Like
  • PeteCal
    , contributor
    Comments (90) | Send Message
     
    Government be damned
    Get your nose out of the issue and let supply and demand set the price.
    Then see how long it takes for Europe to start fracking up their country side
    28 Mar 2014, 08:44 AM Reply Like
  • Selvanator
    , contributor
    Comment (1) | Send Message
     
    Now that think deeper about EU gas (and the so-called Financial Crisis that led to the US shale gale), NATO expansion EU invitation to Ukraine peasants was purely to provoke a Russian response.
    Sure, NATO and the US dont fight real wars (just carpet bombing) so sanctions was the only option.........and that would mean no Russian gas.
    And that means for the EU to be self-reliant they have to start changin environmental laws to tap their own gas wells.
    28 Mar 2014, 09:42 AM Reply Like
  • tnguyen3134
    , contributor
    Comments (2) | Send Message
     
    Natural gas is converted to most of materials we use everyday besides being used to heat up homes, offices, and power plants. To build, to produce, to maintain, to distribute, to sales, and to support the other related industries millions of people are working to make this happen. If this price increases even 25-30% higher, which would be the case if export to Europe is allowed, hundreds of thousand jobs in US could be at risk, and economy could fall back to recession.
    28 Mar 2014, 09:48 AM Reply Like
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