4 ms·

Texas Bans Firms from Taking Natural Gas Out of State

30 points by cwwc 6y ago

brundolf 6y ago
Why would any of them do that right now anyway? The prices have never been this high
- meepmorp 6y ago
  Sometimes, politicians need to look busy; often during or just after a big fuck up.
  - brundolf 6y ago
    This was my thought too. The entire leadership of Texas is under a massive PR crisis, so they pass a bill that accomplishes nothing in practice but sounds really good and tough.
    - meepmorp 6y ago
      I assume they'll eventually blame ERCOT for the mess, pass some reform measures, and the situation will return to the status quo. For the powers involved in the matter, the lack of regulatory rigor is a feature, not a bug. I'm always happy to be proven wrong, though.
- Arnt 6y ago
  Gas is basically an auction. Banning out-of-state bidders decreases the price in-state bidders have to pay.
- gregw2 6y ago
  Two possibilities: 1) Other states are cold and also in need of natural gas and willing to pay more at this critical time 2) Longstanding client relationships and/or contracts
dminvs 6y ago
Is there a version of this for those of us mere mortals without Bloomberg accounts?
cordite 6y ago
Northern Mexico relies on Texas for its natural gas generation, but due to deregulation or corruption they have insufficient reserves and are going through similar blackout practices.
- InvaderFizz 6y ago
  Pemex was in terrible condition long before the opening up of the oil and gas market to competition. I expect that this event will change nothing long term, it is Mexico after all. If anyone is interested is how things look from the Mexican side, in English: https://mexiconewsdaily.com/news/natural-gas-shortage-triggers-major-power-outage/ https://mexiconewsdaily.com/news/natural-gas-shortage-trigge... https://mexiconewsdaily.com/news/blackouts-extended-to-29-states-gas-control-center-issues-alert-over-shortage/ https://mexiconewsdaily.com/news/blackouts-extended-to-29-st...
- fgonzag 6y ago
  Deregulation? It's a state owned electrical monopoly, could you explain why you think the Mexican energy market is deregulated?
throwawaymanbot 6y ago
Texas Capitalism ftw!!! What a mess.
kevin_b_er 6y ago
It seems to have been a hard paywall for me, but this might be the same story: https://www.bloombergquint.com/business/texas-bans-natural-gas-companies-from-taking-fuel-out-of-state https://www.bloombergquint.com/business/texas-bans-natural-g...
cashsterling 6y ago
I think this will quickly be struck down in court... I think this violates federal laws regarding interstate commerce. Sending gas to Northern Mexico is another question though... but that may also violate a trade agreement or something.

30 points by cwwc 6y ago

brundolf 6y ago

Why would any of them do that right now anyway? The prices have never been this high

meepmorp 6y ago
Sometimes, politicians need to look busy; often during or just after a big fuck up.
- brundolf 6y ago
  This was my thought too. The entire leadership of Texas is under a massive PR crisis, so they pass a bill that accomplishes nothing in practice but sounds really good and tough.
  - meepmorp 6y ago
    I assume they'll eventually blame ERCOT for the mess, pass some reform measures, and the situation will return to the status quo. For the powers involved in the matter, the lack of regulatory rigor is a feature, not a bug. I'm always happy to be proven wrong, though.
Arnt 6y ago
Gas is basically an auction. Banning out-of-state bidders decreases the price in-state bidders have to pay.
gregw2 6y ago
Two possibilities: 1) Other states are cold and also in need of natural gas and willing to pay more at this critical time 2) Longstanding client relationships and/or contracts

dminvs 6y ago

Is there a version of this for those of us mere mortals without Bloomberg accounts?

cordite 6y ago

Northern Mexico relies on Texas for its natural gas generation, but due to deregulation or corruption they have insufficient reserves and are going through similar blackout practices.

InvaderFizz 6y ago
Pemex was in terrible condition long before the opening up of the oil and gas market to competition. I expect that this event will change nothing long term, it is Mexico after all. If anyone is interested is how things look from the Mexican side, in English: https://mexiconewsdaily.com/news/natural-gas-shortage-triggers-major-power-outage/ https://mexiconewsdaily.com/news/natural-gas-shortage-trigge... https://mexiconewsdaily.com/news/blackouts-extended-to-29-states-gas-control-center-issues-alert-over-shortage/ https://mexiconewsdaily.com/news/blackouts-extended-to-29-st...
fgonzag 6y ago
Deregulation? It's a state owned electrical monopoly, could you explain why you think the Mexican energy market is deregulated?

throwawaymanbot 6y ago

Texas Capitalism ftw!!! What a mess.

kevin_b_er 6y ago

It seems to have been a hard paywall for me, but this might be the same story: https://www.bloombergquint.com/business/texas-bans-natural-gas-companies-from-taking-fuel-out-of-state https://www.bloombergquint.com/business/texas-bans-natural-g...

cashsterling 6y ago

I think this will quickly be struck down in court... I think this violates federal laws regarding interstate commerce. Sending gas to Northern Mexico is another question though... but that may also violate a trade agreement or something.