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Ukranian Standoff: What's Next? | 127 comments (127 topical, editorial, 0 hidden)
Re: Ukranian Standoff: What's Next? (4.00 / 2)
well, I'm confused. I thought that cheap energy prices currently gave the USA a huge economic advantage. Historically, US foreign interventions have been intended to keep US energy prices low...

It is rightly acknowledged that people of faith have no monopoly of virtue - Queen Elizabeth II
by eurogreen on Sat Mar 15th, 2014 at 03:19:25 PM EST
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Re: Ukranian Standoff: What's Next? (4.00 / 5)
Historically, US foreign interventions have been intended to keep US energy prices low.

Bullocks.  Historically US foreign interventions have been intended to keep corporate profits high.  That can be done equally well by gaining a massive price markup via exports as shorting producers in cowed countries royalties due. Natural gas is not oil.  The US lacks the infrastructure to export right now, and that means that domestic gas producers are taking a huge price hit because they can only sell in North America.

And I'll give my consent to any government that does not deny a man a living wage-Billy Bragg

by ManfromMiddletown (manfrommiddletown at lycos dot com) on Sun Mar 16th, 2014 at 02:50:15 AM EST
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Re: Ukranian Standoff: What's Next? (none / 1)
By having commitments and capability to EXPORT natural gas, given demand, they will be in all the better position to screw over the US domestic market, especially if their efforts to prevent the development of alternative energy sources and deployment of energy saving measures succeed. Their goal is to sell the last 100 cubic feet of natural gas at the highest possible price and get tax subsidies for doing so, even if they export that gas.

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Sun Mar 16th, 2014 at 10:35:14 PM EST
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Re: Ukranian Standoff: What's Next? (none / 1)
The impact will be most severe in terms of fertilizer production.  Right now the US imports quite a bit of anhydrous ammonia from Eastern Ukraine/Russia, and that tends to increase as natural gas prices do. Get ready for another food price shock when American corn prices shoot up based on increasing fertilizer costs.

And I'll give my consent to any government that does not deny a man a living wage-Billy Bragg
by ManfromMiddletown (manfrommiddletown at lycos dot com) on Mon Mar 17th, 2014 at 08:41:21 AM EST
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Re: Ukranian Standoff: What's Next? (none / 0)
A sane reaction to increased fertilizer prices would be a reduction or elimination of requirements for ethanol additives to gasoline. This would at least match drops in feed in tariffs for wind and solar electricity and give the appearance of balance and a coherent 'no subsidies' approach, which, in itself, would be a novelty.

"It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Mon Mar 17th, 2014 at 11:36:59 AM EST
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Re: Ukranian Standoff: What's Next? (4.00 / 2)
Eek! But then how do you expect the corn-planting industry to get its subsidies?
by afew (afew(a in a circle)eurotrib_dot_com) on Mon Mar 17th, 2014 at 12:36:50 PM EST
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Re: Ukranian Standoff: What's Next? (4.00 / 2)
There are hard limits to how high ammonia can go - It is the most widely synthesized chemical on earth, and natural gas is most emphatically not a necessary ingredient. There are producers right now making money producing it via the electrolysis pathway in places with cheap electricity. I think this is due to a cartel in ammonia production, because the level of profit that implies for people producing it the lazy way is hard to explain without a cartel limiting production - but it does mean that if ammonia goes much higher a lot of people are going to start turning electricity water and atmospheric nitrogen into fertilizer.
by Thomas on Wed Mar 19th, 2014 at 04:47:41 PM EST
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Re: Ukranian Standoff: What's Next? (none / 1)
There's a past series of diaries on ET about this, by SacredCowTipper, see this one for example.
by afew (afew(a in a circle)eurotrib_dot_com) on Thu Mar 20th, 2014 at 03:36:08 AM EST
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Ukranian Standoff: What's Next? | 127 comments (127 topical, 0 editorial, 0 hidden)
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