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PeakTrader:

Perhaps, sometime in the 21st century, world population will stabilize, while technological progress to extract metals continues. Eventually, there may be recycling of metals.

The U.S. is abundant in natural gas and coal, and oil production has increased recently through technology, rather than more drilling in Alaska, California, the Gulf of Mexico, etc..

Efficiency and alternative energy will provide almost infinite energy sources.

Also, I may add, exporting natural gas seems to be very inefficient. There are three unusual factors about natural gas:

1. The price differences are huge, e.g. more than twice as high in Europe and more than three times higher in Japan.
2. It has to be converted into liquefied natural gas for export, which seems to be expensive.
3. It’s a “residual good” for many oil producers, which implies supply is relatively inelastic, i.e. a higher price may not increase supply much.

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“Costs of liquefaction can range from $1.50 to $2.00 per mcf…Shipping costs can vary from $0.30 to $0.90 per mcf.

Regasification…converting LNG from a liquid back to a gas so that it can be moved through the domestic natural gas pipeline transportation network…can add $0.30 per mcf to the cost of LNG. Thermal energy (heat) is required to regasify the LNG.

Total costs of liquefaction, shipping and regasification could add up to $2.10 per mcf on the low end to $3.20 per mcf on the high end. Add to this the base cost of the natural gas commodity, currently around $3.00 per mcf in the US. Bringing the total cost of delivering US produced LNG to Europe or Asia to $5.00 to $6.00 per mcf.

To put this in perspective, natural gas in the UK is currently trading around $8.00 per mcf and in excess of $15.00 per mcf in Japan.”

http://extension.psu.edu/natural-resources/natural-gas/news/2012/02/understanding-the-role-of-liquefied-natural-gas-part-1

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Michael Moran says: "Natgas in US trades at $4.5 because of a very cold winter. If we have a warm winter, ends up at closer to $3.5, maybe lower. So even with shipping costs, US Natgas is $8.5 to $10.5 mcf, so makes sense to ship to Asia."

What about the $2.10 to $3.20 per mcf for liquefaction, shipping and regasification?

Does that generally increase or decrease living standards?

And, it makes sense to U.S. producers and Asian consumers.

What about U.S. consumers and Asian producers?

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