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Richard Soultanian of NUS Consulting discusses why the government should get into the natural-gas business.
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We always keep pretty close on natural gas bearing in mind the did the real political in the crash in prices that we've seen recently it dropped below two Books-A-Million British thermal units for us on a decade recent.
I say this changes the whole energy equation for all all of the United States.
He joined the company is rich insulting -- he's with the energy consulting.
In the US consulting.
Richard from -- -- -- my bold opening statement coming with natural gas below two blocks but we've got a lot Omid -- America.
This really changes the energy picture for the whole country doesn't -- it does.
I would may get -- that slightly dipping.
It has the potential to change the assortment typically gonna use it for more than just heating the home in some parts of the country -- actually got to do exactly natural gas for natural -- for generating electricity.
Basically and for heating homes and and then the residual we've got to use it for a lot more than that -- replacing other fuel types what it.
-- replacing coal not for a electricity generating plants at the list with natural gas gonna do that -- that's excellent time time and and and capital expense is going to be a long time before start using it didn't -- -- vehicles long -- -- I.
I I think that's a long way off but it really and in this is going to be something that you don't like here but in order to move that process forward the government's gonna have to take some level of involvement I'm a big believer that it does.
It should make an investment in that -- structure you know.
What do what do you think well that's it back up sort of opening up natural gas filling stage exactly look at that but that the Pickens Plan they're talking about dividends.
You know I'm like I said with the pipeline lots of us here I think that there's a role -- so long as it invests and gets its money back and then gets out.
So I look at co investment by the government not ownership we're giving money away.
In -- come up with a plan where it can invest next few private get the private capital.
Develop the infrastructure.
So they can support this type of long term energy policy and this is what the country's middle and -- a long term energy policy would you rather see us subsidize natural gas filling stations bands say Solyndra is -- so well what.
Without a doubt -- -- -- and do you think he's always did in American with gas so cheap solar is becoming more and more on economical.
And so without some sort of subsidy from the government.
It just doesn't make sense and that's really the question that you know you really had as you look at all these renewable alternative fuels.
How much subsidy do you wanna give them and with gas well gas last week broke the two dollar more without coming down I -- the two questions you've got to have -- this.
How Long Will -- -- cheap last time you know we saw gas -- for a long time it went up to fifteen dollars Brennan BTU but in 2002008.
-- doesn't 'cause they and then it came back down the question is you're not gonna make a long term investment keeping the price of gas is gonna come way back up again.
And I don't think that's likely simply because we have a very interesting dynamic in the country today.
Today we're fracking we're drilling.
And they don't to dry gas that comes out is a byproduct in a way because the wet gas is being sold what about battle trying desk where again as we -- yet -- -- -- -- well you get to cut to -- up in -- you get NGLs are natural gas liquids the liquid stuff that comes out.
That's not crude but it's gas emits and it -- -- natural gas that's liquid form that could find that liquefied comes on -- the not liquefied natural gas liquids natural gas liquids NGLs.
And NGLs sold just like a barrel of crude on the market and if you look.
The US produces nine point 59 point six -- -- barrels a day.
Only six million as crude oil the other three -- -- -- 33630000053000006.
Is NG else coming from these wells so in reality the people who are drilling for gas.
Are getting paid off for the NGLs.
And looking at -- dry gas the natural gas that we think about our homes.
As a by product and Emerson well the not really getting much for but I by can get a hundred dollars a barrel to the other stuff keep -- President -- just putting a lot of trust in the government to say that they should get involved in that there are going to make this -- I think if anybody gonna make it work -- private capital and private business the problem is the hurdle to get there is so hot.
But what the government and they've they've shown that sold to ride the private business out.
No no no and I don't believe I think if -- if it's done right which which is the big question which is a big question no doubt about the government -- kind of thing right.
You know that -- raises an eyebrow raises might as well but the fact is.
Natural gas is abundant we have walked about and we've got to put it to use and the idea -- think about how many gas stations are all over the place.
In order for someone to say you -- -- -- natural gas car analogy car.
You've got to have the confident about the future -- you gotta find this patients get an affiliate stay late so you want the government to go filling station no I want to subsidize that -- some sort of program to send that to happen faster -- storm -- opens a natural gas filling station the government was given the attacks right but it'll give you -- A -- Own a can be Stewart Solyndra money may -- -- smack your credit may be better could have I don't know that Richard you arrived last time when you said the price of gas would level off and -- come down a little.
Give me -- for about ten seconds give me focus for the immediate future gas is gonna stay level until we get some resolution with the -- we had a very important meeting this weekend.
Nothing got resolved and it just basically as Britain prime minister Netanyahu said it was a freebie for five weeks.
In five weeks time -- meet in Baghdad the question now becomes who's gonna -- something first.
Hard for the VP five plus one to give up something I think it's equally hard for Iran to -- up something.
I'm very concerned that we're gonna stay flat we're gonna come through the summer months and all of a sudden the last policy option may be.
Unfortunately.
A military one I don't like it but that's what I for -- -- -- that goes gas if -- -- takeaway think President Obama has been playing his cards very well on the way he's been using the saudis and he's been using the SP are just waving it around trying to keep the market low.
But he's gonna hold ES PR in case something happens this summer client and Richard -- ten year and you've been right this fall.
We shall see about this very good stuff -- Richard thanks so much for joining us let's analyst thank you.
