[LincolnTalk] natural gas prices - the big picture

[Colleen Katsuki]

 To understand gas prices, you have to look at the whole world. That is 
simply amazing for me to say that! But the demand for oil and gas is 
worldwide and capitalistic. There is no world governing body to set or 
to control prices. That said, when demand exceeds supply, prices go up. 
The Biden administration has been discouraging oil and gas production in 
this country in order to promote solar and wind. If solar and wind 
become more price compatible with oil and gas, then people,  being 
economically rational, will switch. One little known fact is that after 
fracking happened, and you can applaud it or hate it, the US became a 
huge producer of oil and gas.  I think the US still produces more than 
Saudi Arabia, but I could be wrong. No wonder our prices were low! 
During that time Germany encouraged gas pipe lines from Russia. They 
thought this was a good idea. It is now seen as a terrible idea because 
Russia has cut the gas to 20% of the normal flow. The US is trying very 
hard to supply Europe, especially Germany and Italy with natural gas so 
that they do not freeze to death in the dark this winter. They are 
already starting to ration natural gas.  Context is everything. If my 
prices double this winter, is that too little to pay to help Europe survive?

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