Will LNG Rescue America's Oil-Addicted Economy?

War-weakened dollar at risk of hurtling into a free-fall vis-a-vis the yen and the euro.

Published: 29-Mar-2005

Later this year, Americans will likely hear the acronym LNG and see new tankers carrying LNG sailing into some U.S. ports. LNG is intended to save the heart and core of American civilization -- to save our automotive civilization from possible rust and decay, and the Republicans from political decline.

LNG stands for "Liquefied Natural Gas," and the tankers, coming from many parts of the world, will be carrying gas that has been liquefied at around -260 F.

Natural Gas Intelligence, a weekly gas market newsletter, reports that 43 proposals are pending for the new LNG import facilities in North America. If all are built, they could supply 60 percent of existing demand in the United States and Canada. Obstacles, such as local opposition to the new terminals, will cut the number of facilities eventually built. But, experts say, only a fraction of the number of terminals are really needed.


Visits to China, India, Malaysia and Pakistan are significant because the trip spells out the Saudi Kingdom's Look East policy, representing a new reorientation in its foreign policy that was heavily tilted toward the West.

The worst two scenarios suggest a drastic decline in output to 875,000 barrels a day by the end of 2007 and to just 520,000 a day by the end of 2008.

Bush said he envisioned a future in which a plug-in hybrid car could drive 40 miles on a lithium-ion battery, then stop at a filling station for ethanol, a fuel usually made from corn, similar to HyMotion Prius pictured below.


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