Friday, September 28, 2012

UAE and Promised Land?

The other day I mentioned the new Hollywood feature called Promised Land, which promises to bash hydraulic fracturing and the natural gas industry.  I read this morning that one of the groups financing the movie is Abu Dhabi Media Company, wholly owned by the Abu Dhabi government.  Abu Dhabi, as you know, is the largest of the United Arab Emirates, and is its capital.

Isn't that a hoot?!?  Here we have an OPEC member state funding a movie attacking natural gas production in the United States.

The export of natural gas is especially important to the UAE, and the introduction of less expensive North American gas will not help the country's "top line."  While there are certainly more than enough potential gas consuming customers out there, if the U.S. starts exporting LNG, current exporting nations are going to have to compete in a marketplace with cheaper U.S. gas.  I'm no economist, but when a less expensive comparable product enters the market, prices tend to go down.

Seems like motive to me.

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