Price Wise: Don't just complain, manage


With the caveat that I have no information on risk management activities at Dow Chemical or other chemical companies ... based on the following articles, for Dow to simply complain about potentially higher natural gas prices rather than manage them is astonishing, particularly given the ease with which Dow (or anyone else) could manage them while prices are at historical lows. Consider --


Natural Gas: Manufacturers Fear Higher Costs
(Wall St. Journal, 12-22-11)

U.S. officials will soon weigh in on a fight between companies that want to export some of America's fast-growing supply of natural gas and big manufacturers that oppose the exports because they rely on cheap domestic gas.

The battle, which pits manufacturers such as Dow Chemical Co. against energy producers like ConocoPhillips, shows how the boom in U.S. fossil-fuel production is upending markets and forcing policy makers into decisions they didn't imagine facing just a few years ago....
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