5 ms·

When operational, this facility consumes billions of cubic feet of natural gas [1]. They take gas make it liquid, put it on a boat, ship it. If they have crack

When operational, this facility consumes billions of cubic feet of natural gas [1]. They take gas make it liquid, put it on a boat, ship it. If they have cracked pipes, they are less likely to reopen. Not reopening, not going to consume the gas. Less demand for gas. Price drops. [1] https://www.eia.gov/todayinenergy/detail.php?id=52859 https://www.eia.gov/todayinenergy/detail.php?id=52859

spywaregorilla 4y ago
The fact that one is unable to buy gas does not mean demand for gas has fallen.
- nuclearnice3 4y ago
  The fact that the plant will be unable to buy gas for longer than anticipated should reduce the expected demand for gas. Less demand for gas, lower price for gas. People were pricing gas on some expectation of this plant opening and consuming at some point in the future. If that's pushed back, the price should drop.
  - spywaregorilla 4y ago
    That is not how that works. That would reduce the quantity demanded, not the demand. You're describing a supply decrease, which will raise the price. The mechanic here is the decline of exports to europe making the supply of gas available to us go up, meaning the price for gas in the US will go down.
    - nuclearnice3 4y ago
      Reducing the quantity demanded is reducing the demand. I don't understand how you reduce "quantity demanded" but not "demand." MAybe you can clarify. I am describing a demand decrease. When operational, this plant consumes US gas. It is a demander of gas. If it's staying closed, less demand for US gas. > The mechanic here is the decline of exports to europe making the supply of gas available to us go up, meaning the price for gas in the US will go down. This is correct and equivalent to what I'm saying. Your notion: "If this place doesn't open, less gas is exported to europe, leaving more supply in the US" My notion: "If this place doesn't open, less gas is bought in the US for export to europe, leaving more supply in the US" We're on the same page.
      - spywaregorilla 4y ago
        > Reducing the quantity demanded is reducing the demand. > I don't understand how you reduce "quantity demanded" but not "demand." MAybe you can clarify. As much as I dislike appeals to econ 101, this is a basic concept of econ 101. Demand is the general willingness of people to buy something. If the price goes up they will be less. If the price goes down they will by more. Demand is how much they want to by as a function of the price. Quantity demanded is how much they're going to purchase given a specific price. A change in demand implies people are no longer going to buy the same amount for the same distribution of prices. e.g. perhaps a new iphone comes out and people aren't willing to buy the older version for the original price. If the price goes up due to supply shortages or down because of supply increases, the quantity demanded will change but demand will not. The price will also change. https://keydifferences.com/difference-between-demand-and-quantity-demanded.html https://keydifferences.com/difference-between-demand-and-qua... You are describing supply side effects. We're arriving at the same place, but your explanation of the economic story is not correct.
        nuclearnice3 4y ago
        This is very clear and helpful. Thank you.
        deleted 4y ago
        [deleted]

spywaregorilla 4y ago

The fact that one is unable to buy gas does not mean demand for gas has fallen.

nuclearnice3 4y ago
The fact that the plant will be unable to buy gas for longer than anticipated should reduce the expected demand for gas. Less demand for gas, lower price for gas. People were pricing gas on some expectation of this plant opening and consuming at some point in the future. If that's pushed back, the price should drop.
- spywaregorilla 4y ago
  That is not how that works. That would reduce the quantity demanded, not the demand. You're describing a supply decrease, which will raise the price. The mechanic here is the decline of exports to europe making the supply of gas available to us go up, meaning the price for gas in the US will go down.
  - nuclearnice3 4y ago
    Reducing the quantity demanded is reducing the demand. I don't understand how you reduce "quantity demanded" but not "demand." MAybe you can clarify. I am describing a demand decrease. When operational, this plant consumes US gas. It is a demander of gas. If it's staying closed, less demand for US gas. > The mechanic here is the decline of exports to europe making the supply of gas available to us go up, meaning the price for gas in the US will go down. This is correct and equivalent to what I'm saying. Your notion: "If this place doesn't open, less gas is exported to europe, leaving more supply in the US" My notion: "If this place doesn't open, less gas is bought in the US for export to europe, leaving more supply in the US" We're on the same page.
    - spywaregorilla 4y ago
      > Reducing the quantity demanded is reducing the demand. > I don't understand how you reduce "quantity demanded" but not "demand." MAybe you can clarify. As much as I dislike appeals to econ 101, this is a basic concept of econ 101. Demand is the general willingness of people to buy something. If the price goes up they will be less. If the price goes down they will by more. Demand is how much they want to by as a function of the price. Quantity demanded is how much they're going to purchase given a specific price. A change in demand implies people are no longer going to buy the same amount for the same distribution of prices. e.g. perhaps a new iphone comes out and people aren't willing to buy the older version for the original price. If the price goes up due to supply shortages or down because of supply increases, the quantity demanded will change but demand will not. The price will also change. https://keydifferences.com/difference-between-demand-and-quantity-demanded.html https://keydifferences.com/difference-between-demand-and-qua... You are describing supply side effects. We're arriving at the same place, but your explanation of the economic story is not correct.
      - nuclearnice3 4y ago
        This is very clear and helpful. Thank you.
      - deleted 4y ago
        [deleted]