Dow Chemical Objected to the Export of Natural Gas from the U.S

question 13

Multiple Choice

Dow Chemical objected to the export of natural gas from the U.S. to foreign countries. What does the economic analysis of the export of natural gas from the U.S. suggest the effect of those exports will be for Dow Chemical?

• A)The export of natural gas from the U.S.will decrease the supply of natural gas available to Dow Chemical and other users of large amounts of natural gas and increase the price of natural gas in the U.S.
• B)Dow Chemical does not directly use natural gas, but does use electricity that can be generated by natural gas, so the effect on Dow Chemical will depends on alternative means of producing electricity.
• C)The transportation costs of exporting natural gas from the U.S.to Asia and Europe will keep the price of natural gas in the U.S.relatively low, so Dow Chemical will benefit from that low price.
• D)The export of natural gas from the U.S.will eventually deplete U.S.supplies of natural gas so Dow Chemical will have to find other sources of energy.

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