Edward Conard

Top Ten New York Times Bestselling Author

  • “…reminds us that inequality sends a signal of what society lacks most, in America’s case, entrepreneurship and risk taking.” - Lawrence Lindsey, CEO, The Lindsey Group, former Director of the National Economic Council
  • “…a fresh argument for the productive value of inequality.” - David Autor, Professor of Economics, Massachusetts Institute of Technology
  • “There are an amazing number of good ideas and interesting points made in Unintended Consequences. The thinking underlying it, and the obvious depth of understanding of the author, are very impressive.” - Steven Levitt, coauthor of Freakonomics; 2004 John Bates Clark Medal
  • “…serious thinking for serious thinkers. …a thought-provoking blueprint for growing middle- and working-class incomes.” - Mitt Romney, former Governor of Massachusetts
  • “…challenges misconceptions that distort our economic debates.” - Arthur Brooks, President of the American Enterprise Institute
  • “A full-throated defense of economic dynamism.” - The Wall Street Journal
  • “Unintended Consequences offers deep and well-argued analyses on almost every issue.” - The New York Times
  • “Unintended Consequences provides a provocative interpretation of the causes of the global financial crisis and the policies needed to return to rapid growth. Whether you agree or not, this analysis is well worth reading.” - Nouriel Roubini, New York University; Chairman, Roubini Global Economics
  • “…a comprehensive explanation of the modern economy.” - Julian Robertson, Founder, Tiger Management
  • “…a must-read for serious students of economic policy.” - Glenn Hubbard, Dean, Columbia Business School, and former Chairman of the Council of Economic Advisers
  • “Unintended Consequences should be read by anyone who takes for granted the superiority of progressive taxation and has not thought carefully about the trade-offs involved.” - The New Republic
  • “…reminds us that inequality sends a signal of what society lacks most, in America’s case, entrepreneurship and risk taking.” - Lawrence Lindsey, CEO, The Lindsey Group, former Director of the National Economic Council
Upside of Inequality Oxford Unintended Consequences

AI Summary. European and Asian buyers pay over $30 per million British thermal units for natural gas while US buyers pay around $3 and Canadian buyers about $1.5, a roughly 12x gap that is the widest on record. US liquefied natural gas exports have not been enough to fully link the domestic market to global prices.

Javier Blas Bloomberg
Date Posted:
Is Database:
Database

The price of natural gas in Western Europe and Japan is now a record 12x that of the North American price, as the shale revolution and ample domestic reserves shield North American gas consumers from the fallout of the Iran war.

How wide is the gap between US and overseas gas prices?

Core argument: European and Asian gas buyers pay north of $30 per mBtu while US buyers pay around $3 and Canadian buyers about $1.5, a gap reaching a ratio of 12 times.

While European and Asian consumers are now paying north of $30 per million British thermal unit for their gas, US buyers pay around $3 per mBtu. Last week, US gas prices briefly touched a two-year low of $2.5 per mBut — in the middle of an energy crisis. Canadian costs are even lower, at about $1.5 per mBtu. The price difference between gas in Europe and Asia versus North America, reaching now a ratio of 12 times, has never been wider; not during the 2022 gas shock following the Russian invasion of Ukraine, nor in 2011-2012 after the Fukushima nuclear accident. Today, the US is exporting huge amounts of gas as LNG. But even that isn’t enough to fully connect its domestic market to the global one. As such, America is making a double profit: First, it enjoys ultra-low gas prices; second, it’s paid enormous sums for its exports.

Takeaways by Macro Roundup® AI

  1. European and Asian gas buyers pay north of $30 per mBtu while US buyers pay around $3 and Canadian buyers about $1.5, a gap reaching a ratio of 12 times.
  2. The price gap between European and Asian gas and North American gas has never been wider, exceeding the spreads during the 2022 shock after Russia’s invasion of Ukraine and in 2011–2012 after the Fukushima accident pushed Japan toward gas.
  3. US gas prices briefly touched a two-year low of $2.5 per mBtu, and large LNG exports have not fully connected the domestic market to the global one, leaving America with low domestic prices and large export earnings.

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