Higher energy and food prices are a pain for consumers, but they could benefit Colorado’s economy in several ways.
Natural gas is a key commodity produced in Colorado. But it is difficult to export overseas, creating a huge gap in pricing compared with oil.
Oil is trading at about $112 a barrel on the New York Mercantile Exchange. Natural gas, converted to a comparable equivalent, costs about $25 a barrel, said Colin Fenton, chief commodities strategist at JPMorgan Chase in New York.
The Chinese, aware of that gap, are planning heavy investments in U.S. plants that can liquefy gas for export, he said.
Gas exports should benefit Colorado producers, more so if the federal government doesn’t open up the eastern Gulf of Mexico to drilling.
High oil prices also are a boost to the alternative-energy industry, a sector the state has pushed hard to develop. And Colorado farmers and ranchers can expect higher commodity prices to boost the bottom line.
Aldo Svaldi: 303-954-1410 or asvaldi@denverpost.com
