Pricey Editor,
Again in 2014, my spouse and I met with staffs of Sens. Charles Schumer and Kirsten Gillibrand, Democrats of New York, on plans to export pure fuel. We identified that, though the U.S. then needed to import pure fuel to satisfy its wants, corporations however had been planning to export as much as 60 % of U.S manufacturing, maybe due to greater costs abroad, inevitably inflicting costs right here to rise.
Now, Central Hudson acknowledges steep will increase in pure fuel costs, and in electrical technology fueled by pure fuel — coincidentally, after the U.S. despatched Liquid Pure Fuel (LNG) tankers to Europe to assist them meet demand in a chilly winter, and amid geopolitical developments.
There are lots of puzzles relating to pure fuel pricing, amongst them this reality: On an power foundation, pure fuel worth per million BTUs ought to be roughly one sixth the worth of oil per barrel. On the $60/barrel oil development over the past two years, pure fuel in idea ought to have been $10/million BTUs, whereas the precise development line was spherical $3. Europe’s pure fuel costs had been extra like $10 till 2016, when costs then ranged round roughly $5. Just lately, Europe’s pure fuel costs had been as excessive as $30, the oil equal of $180 per barrel (assume $5-$6 per gallon for gasoline).
Why are we exporting pure fuel as shopper costs are exploding?
Frank Stoppenbach
Pink Hook, N.Y.