Natural gas provides an example of comparative advantage, as discussed below. Natural gas is nothing new. Its origins date back to about 1000 b.c. when a goat herdsman in Greece came across a flame rising from a fissure in rock on Mount Parnassus. The Greeks, believing it was divine origin or supernatural, built a temple on the flame. It wasn't until about 500 _b.c. that the Chinese discovered that the source of the flame was natural gas seeping to the earth's surface. The Chinese made crude pipelines out of bamboo shoots to transport the gas, where it was used to boil sea water, separating the salt and making the water drinkable. Around 1785 Britain became the first country to commercialize the use of natural gas that was produced from coal and could be used to light houses and streetlights.
In the United States, the natural gas industry has existed for over 100 years. The United States has exported some natural gas during this period of time, but has generally imported more than it has exported, mostly from Canada. However, this trend began to change around 2010 when new sources of natural gas were found in the United States, particularly from shale gas. Technologies were developed (hydraulic fracturing and horizontal drilling) that allowed water, sand, and chemicals to create fissures in shale, allowing trapped natural gas to be cost-effectively extracted. Suddenly the United States increased its ability to produce natural gas.
The natural gas bonanza helped lower U.S. energy prices and resulted in U.S. producers being poised to ship vast quantities of gas overseas. However, federal law requires the U.S. Department of Energy to determine that natural gas projects are in the public interest before granting export permits to countries that do not have free trade agreements with the United States. As producers such as Exxon Mobil sought federal permits for export projects, a debate ensued over whether they should be allowed to expand their exports.
Industry proponents argue that natural gas exports provide a much-needed source of energy to American trading partners and foster economic growth and jobs in the United States. They are eager to take advantage of higher prices in foreign markets. Industry experts acknowledge that although many countries are endowed with large shale reserves, most countries are several years behind the United States in extraction and exploration. Moreover, proponents maintain that expanded exports of natural gas are a boost to key U.S.
allies, especially Japan, as it transitions away from nuclear power.
However, environmentalists contend that natural gas still leaves a significant carbon footprint: A global interest in U.S. natural gas means an extended reliance on fossil fuels and the delay of the shift to clean-tech energy such as solar power or wind power. They also are concerned about the environmental damage from drilling techniques used in the extraction of natural gas from shale that can harm drinking water.
What effect exporting natural gas will have on U.S. prices is another vital question in the debate over whether to export. A significant increase in U.S. natural gas exports would likely impose upward pressure on domestic prices, but the extent of any rise is unclear. There are a variety of factors that affect prices, such as economic growth rates, differences in local markets, and government regulations. Producers contend that increased exports will not increase prices significantly because there is ample supply to meet domestic demand, and there will be the extra benefits of increased revenues, trade, and jobs. Consumers of natural gas who are helped by low prices, fear prices will rise if natural gas is exported. At the writing of this text, it remains to be seen how the effects of increased natural gas exports will play out.

What do you think? Do you feel that natural gas should be exported by the United States?