Posted by Tina
Palin Thwarts The Gas Cartel Investors Business Daily
* Iran resurrected its idea of a “gas cartel” to control gas markets like oil. But even if it succeeds, the U.S. won’t be vulnerable. If you wonder why, look to the governor of Alaska. *** That’s right, Gov. Sarah Palin took a powerful preemptive step in August to shield the U.S. from a coming gas cartel. Palin’s effort to create the Trans-Canada Alaska gas line which would provide a vast new trove of natural gas each day to the U.S. effectively nullifies the emerging gas cartel’s potential impact on America. *** If OPEC strikes you as a bad group, the new cartel for natural gas, led by Russia and Iran, will be even worse. *** Russia has made standoffish statements about the plan, but won’t repudiate it. “A gas OPEC is an interesting idea,” then-President Vladimir Putin declared last year. Based on Russia’s moves since, the Heritage Foundation’s Ariel Cohen believes it’s a stealth move from the Kremlin to keep buyers unperturbed as the cartel slowly forms. *** He’s right. This week in Tehran, Iranian President Mahmoud Ahmadinejad quietly drew up the organization’s charter and will take it to Moscow next week. *** One reason for the West’s complacency is the difficulty in founding a gas cartel. The natural gas market isn’t like the oil market, which trades at one price all over the world and can ship its product almost anywhere. *** Most natural gas sales, by contrast, depend on pipelines and 20- or 30-year delivery contracts for pricing, both of which make price manipulation difficult. *** Almost entirely off the news radar, Palin mowed down 30 years of legislative squabbling in the Alaska statehouse and then triumphantly signed off on the pipeline in August, stating her aim was energy independence. *