Prosperity at Home and Strengthened Allies Abroad – A Global Perspective on Natural Gas Exports
February 4, 2014
- The Department of Energy (DOE) should approve all pending export applications for liquefied natural gas (LNG) by the end of 2014, and Congress should consider ways to update the process for future applications.
- The window of opportunity for natural gas exports will not remain open indefinitely. In the absence of timely approvals, nations with near term energy needs may be forced to look elsewhere for supplies, securing financing for LNG export facilities will become more difficult, and America will see increasing competition from other LNG exporters. For these reasons, DOE’s slow approval process for LNG export applications is threatening this opportunity and needs to change.
- Due to advancements in technology and innovation, America’s natural gas output has rapidly increased since 2005 and is expected to continue rising in the decades ahead in response to growing demand. Plentiful natural gas is helping many domestic energy producers and manufacturers and is spurring new investment and job growth.
- According to a study conducted for DOE, America has enough natural gas to meet domestic needs affordably while also supporting economically beneficial export markets in LNG. This study and others further concludes that the net benefits increase along with the level of exports. Many nations have expressed strong interest in importing LNG from the U.S.
- The export of LNG also offers significant geopolitical benefits. U.S. LNG can supplant the influence of other exporters like Russia and Iran while strengthening ties with our allies and trading partners around the world. It can also help developing nations by providing a much-needed source of affordable energy.
- Domestic natural gas production creates jobs and strengthens national security. Recent growth has positively impacted our economy, and to maintain our competitive advantage, we must allow the U.S. energy industry to continue to grow. Absent new demand outlets, such as LNG exports, investments in natural gas production will continue to decline to the detriment of our highly skilled domestic workforce.
To view a copy of the committee’s report, “Prosperity at Home and Strengthened Allies Abroad – A Global Perspective on Natural Gas Exports,” click HERE.
To view frequently asked questions about the report’s findings, click HERE.