Brett Guthrie: “The price is different around the world because of the way it is distributed. The price of natural gas is the price of…”

“The price is different around the world because of the way it is distributed. The price of natural gas is the price of natural gas. To use it, you have to get it to market. You have to have it there. To use an example my friend from Illinois said, there was a terminal that went offline that was supposed to export natural gas. It burned, so it went offline. There was natural gas moving to that terminal. All of a sudden, for a few days, you had an excess of capacity of natural gas. The argument would be, we would have the same production of natural gas if we just shut down all of the ports. If you can use one as an example, if you shut them all down and continue to produce the same level of natural gas, the price would drop. The issue is, there is a certain point where it costs you to produce natural gas. You have to reach that point. What we are saying is, there is a world price for natural gas. If you continue to expand markets for people to ship natural gas, you will continue to have natural gas, and they will continue to drill to meet those market demands around the world. If you shrink the demand around the world artificially by banning the exports, then they are not going to produce as much natural gas, and it doesn't affect the price. You can point to times when there are disruptions in the supply, but overall, it is basic economics.”