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Selling Natural Gas to a Foreign Country

In: Business and Management

Submitted By clayh40
Words 285
Pages 2
ienYou are a junior manager of international development at Cantafio oil and Gas, LLC. Because of the success in drilling in tight formation thanks to horizontal drilling and fracking, Cantafio oil and gas, LLC, -like many in our industry- has an abundance of natural gas reserves. A constraint on profitability is that like all U.S businesses we are legally prohibited from selling natural gas abroad. With the oversupply of natural gas, the domestic price is depressed.
However, recently there has been significant progress in modifying current law to allow the sale of natural gas to foreign entities. While no far reaching legislation has been passed, it is important to be proactive and begin to conduct research to determine what might be profitable foreign markets to sell natural gas.
You have been asked to identify a foreign country that would be a receptive market for our liquefied natural gas product. Identify the responsible governmental entity in that foreign country with whom we are going to have to conduct business. Include an analysis of the legal barriers in the United States and that target country before we conduct business. You will need to explain how it is liquefied natural gas can be sold to a foreign country in light of current American law.
Remember, this is a memo. Your first decision is to identify the foreign nations to conduct business. Ultimately, this project will be turned over to our legal team to more thoroughly conduct analysis of this proposition. However, it is important for you to begin the process by identifying a specific foreign country to conduct the most preliminary of analysis.

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