Reshaping Panama Canal Trade Means Boom in U.S. Gas to Asia

[phantom power]

Six years after the Panama Canal began a $5.25 billion expansion to capture shipments of Asian-made goods to the U.S. East Coast, the flow of liquefied natural gas in the opposite direction promises to be a better bet.

Shipments of the fuel, along with rising commodity and energy cargoes between the U.S., Latin America and Asia, are likely to provide the largest sources of demand growth when the project is complete in June 2015, Administrator Jorge Luis Quijano said in an interview. Shipping containerized goods, which generate most business for the 50-mile link, has yet to return to the same level as 2007, two years before the global economy had its worst recession since World War II.

The shift shows how rising U.S. shale-gas output is reshaping global energy markets. The Panama Canal enlargement is central to the change because the route cuts voyages by more than 7,500 nautical miles (8,500 miles) to Asia, where fuel demand is growing fastest. The waterway, handling 5 percent of world trade and shipping 333 million metric tons in the year to Sept. 30, is used by as many as 14,000 ships a year, connecting 160 countries and 1,700 ports, according to its website.

http://www.bloomberg.com/news/2013-02-01/reshaping-panama-canal-trade-means-boom-in-u-s-gas-flow-to-asia.html

[loudsue]

1. So fracking is poisoning our groundwater so we can export that gas to foreign markets?

Drill baby drill! It's going to bring down gas prices!!!

We tried to tell those morans that support republicans for office that "drill baby drill" was NOT going to lower their fuel bills, but they just never could put 2 + 2 together.

[Joe Shlabotnik]

2. Tar sands via Keystone XL

will oozing through there too, if the PTB have their way.