UPDATED 5/16/2014: LNG Exports - What is being said?

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Some Americans are concerned about the impact of exporting natural gas from the United States. Curious myself, I looked up what the experts have said and compiled the attached PowerPoint that explains what liquefied natural gas is, its history, and what experts and studies have said about the impact of exporting it from the United States.

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UPDATED 5/16/2014: LNG Exports - What is being said?

  1. 1. Jeff Schrade Director of Government Affairs Natural Gas Supply Association May 16, 2014
  2. 2. Four Sections in this presentation  LNG background………………………………… 4-10  Experts……………………………..………………… 12-45  Studies…………………..…………………………… 47-68  Editorials………………………………………..….. 70-75 2
  3. 3. Background
  4. 4. America has a lot of natural gas  America’s natural gas resource doubled in the last decade due to hydraulic fracturing - Even though more than 200 trillion cubic feet drawn down at the same time  With so much natural gas, we have room to export some 4
  5. 5. LNG is Liquefied Natural Gas  Natural gas becomes liquid when chilled to -260ºF.  Chilling process shrinks it 600 times  Makes it easier to transport  LNG is… - Cold, clear, and colorless - Non-toxic, non-corrosive and non-explosive Liquefaction Plant 5
  6. 6. LNG’s US history  1912 Construction begins on world’s first LNG plant - West Virginia  1941 First commercial liquefaction plant - Ohio  1959 First shipment of LNG - “Methane Pioneer” carried LNG from Louisiana to England  1969 First shipment of LNG from Alaska to Japan Source: http://www.beg.utexas.edu/energyecon/lng/LNG_introduction_06.php The Methane Pioneer made its first LNG shipment in 1959 6
  7. 7. Competitive Worldwide LNG Market  Worldwide (excludes US) - As of October 2013 32 LNG liquefaction export facilities operating 13 under construction and 17 others planned - 362 LNG ships sailing as of 2012 - 96 new vessels have been ordered Sources: http://www.alaskajournal.com/Alaska-Journal-of-Commerce/November-Issue-3-2013/Terminals-Operating-Under-Construction/ And: http://www.shell.com/global/future-energy/meeting-demand/natural-gas/liquefied-natural-gas/lng-shipping.html And: http://www.igu.org/gas-knowhow/publications/igu-publications/IGU_world_LNG_report_2013.pdf And: http://shipbuildinghistory.com/today/highvalueships/lngactivefleet.htm LNG export facility in Indonesia 7
  8. 8. Competitive global market: 17 countries export LNG 8 Source: http://www.igu.org/gas-knowhow/publications/igu-publications/IGU_world_LNG_report_2013.pdf
  9. 9. LNG export status U.S. 1 – Export facility operational in Alaska – built in the 1960s 1 – LNG export facility fully approved for operation in Louisiana 6 - LNG export facilities have conditional approval by the U.S. government 24– Twenty-four remain to be approved as of April 25, 2014 Construction and operation of each new LNG export project will create tens of thousands of jobs in engineering and construction. 9
  10. 10. Federal government's role  Section 3 of the Natural Gas Act - FERC responsible for authorizing the siting and construction of LNG import or export facilities - Must comply with National Environmental Protection Act - Requires EIS - DOE's Office of Fossil Energy authorizes natural gas imports and exports - Free Trade Agreement (FTA) Countries • Authorization must be granted without modification or delay - Exports to non-Free Trade Agreement Countries • Authorization must be granted unless, after opportunity for hearing, proposed export found to not be consistent with the public interest. 10
  11. 11. What do the experts think?
  12. 12. Associated Press analysis: Economists overwhelmingly support LNG exports  “The AP survey collected the views of private, corporate and academic economists on a range of issues.  “Of the 30 economists who participated, nearly 90 percent responded that more exports of oil and gas would help the U.S. economy.” 12 Jonathan Fahey Energy Writer Associated Press Source headline: Economists polled by AP overwhelmingly support exports of oil and gas to boost economy, April 29, 2014
  13. 13. AFL-CIO president: LNG exports will help trade deficit  “If we have the ability to export natural gas without increasing the price or disadvantaging American industry in the process, then we should carefully consider that and adopt policies to allow it to happen and help, because God only knows we do need help with our trade balance.” 13 Richard Trumka President AFL-CIO Source: http://inthesetimes.com/article/16221/angering_environmentalists_afl_cio_pushes_fossil_fuel_investme
  14. 14. National Association of Manufacturers: LNG exports great for jobs  “Building, modernizing and expanding export terminals makes sense. In a still sluggish economy, expansion will create over 10,000 jobs…. It’s a winning proposition.” 14 Jay Timmons President and CEO National Association of Manufacturers Source headline: An Opportunity for Manufacturers and Exporters in the Pacific Northwest October 13, 2013
  15. 15. Former Clinton and Bush Energy Secretaries: Time to act on LNG exports  “The president and U.S. Energy Secretary Ernest Moniz deserve credit for approving seven export permits for natural gas to countries with whom the U.S. does not have free trade agreements.  “But frankly, the approval process needs to be much faster since there are more than 20 other applications pending.” 15 Spencer Abraham Secretary of Energy 2001 – 2004 Bill Richardson Secretary of Energy 1998 – 2001 Source headline: Time to act on energy exports CNBC website, May 14, 2014
  16. 16. Former Obama Secretary of Energy: LNG means more money for America  “Exporting natural gas means wealth comes into the United States.”  "If we are buying, that is wealth out of the country. If we are selling, that's wealth into the country." Steven Chu Secretary of Energy 2009-2013 Source: Energy secretary backs natural gas exports Houston Chronicle, February 2, 2012 16
  17. 17.  “Expanded exports will improve the U.S. balance of trade, support local and regional economies, and increase the U.S. presence in global energy markets – and do so without harm to the environment or to U.S. consumers and businesses.” Testimony before the Subcommittee on Energy and Power, U. S. House Committee on Energy and Commerce – May 7, 2013 U.S. Senator Byron Dorgan (D-ND) 1987–1995 Co-chair Bipartisan Policy Center’s Energy Project Former U.S. Senator: LNG exports will help America 17
  18. 18. Expert analyst on energy forecasting: LNG means jobs and more jobs  “The net effects on U.S. employment from LNG exports are projected to be positive with average net job growth of 73,100 to 452,300 between 2016 and 2035.” 18 Source headline: Senate Natural Gas Forum Reaffirms LNG Exports are Positive for U.S. Economy, Workforce May 21, 2013 Harry Vidas Vice President ICF International
  19. 19. Central European leaders want action on LNG  “We ask for your support… existing bureaucratic hurdles for the approval of the export licenses to non-FTA countries like the Visegrad countries are a major hurdle.  “U.S. export of LNG would not only meet the energy security challenge of the Visegrad countries but that of the wider region as well.” 19 Ambassador György Szapáry HungaryAmbassador Ryszard Schnepf Poland Ambassador Petr Gandalovič Czeck Republic Ambassador Peter Kmec Slovakia Source: In Response to Russian Aggression, Key Central European Nations Plead for U.S. Natural Gas Exports Letter to Speaker Boehner – March 8, 2014
  20. 20. Former National Security Advisor: LNG could curb Russia's behavior  "Mr. Putin has no qualms about using energy as a weapon. We see it as a vehicle to peace and prosperity…  "We can work with the Europeans to make them less dependent on Russian energy, which is what they want.” Quote source: March 6, 2014 http://www.cbsnews.com/news/gen-jim-jones-strategic-use-of-energy-could-curb-russias-behavior Gen. James Jones, Ret. Former National Security Advisor 2009-2010 20
  21. 21. Institute for Policy Innovation: LNG exports is a “peace movement”  “The U.S. must move forward with plans that will turn cheap and abundant natural gas into liquefied natural gas (LNG) for export.  “If Russia, Iran, China and Venezuela have no energy monopoly over their neighbors, they would have very little control -- and even less money. Producing and exporting U.S. energy may be the closest thing we've seen to a real “peace movement.’” Source quote: “Energy policy is national security issue: Guest Opinion” USA Today, May 25, 2013 Dr. Merrill Matthews Resident Scholar Institute for Policy Innovation 21
  22. 22. Former Chairman U.S. Senate Energy Committee: Let the market work  “My 24 years on the Senate Energy Committee also involved dealing with the government's efforts to regulate price and supply…. This disastrous experiment in central planning was soon abandoned.  “The free market might not always lead to everyone's definition of the sweet spot, but experience has shown that it is a better allocator and regulator than bureaucrats and politicians.” U.S. Senator J. Bennett Johnston (D-LA) Chairman of the Senate Energy and Natural Resources Committee 1987–1995 Testimony before the Subcommittee on Energy and Power, U. S. House Committee on Energy and Commerce – May 7, 2013 22
  23. 23. Chairman of the Joint Chiefs of Staff: Energy Exports Boost National Security  “An energy independent [U.S.] and net exporter of energy as a nation has the potential to change the security environment around the world – notably in Europe and in the Middle East." Martin Dempsey Current Chairman of the Joint Chiefs of Staff Source: Wall Street Journal, March 19, 2014 A Gas Export Strategy: Opponents don't understand energy markets or price expectations 23
  24. 24. U.S. Energy Information Administration leader: Natural gas prices - Little change ahead  “It's going to be so slow — the process to get everything built and permitted is so long — that I don't see a lot of pressure on price.” Guy Caruso, former Administrator of the U.S. Department of Energy’s Energy Information Administration (2002-08) Source: SNL Daily Gas Report - March 07, 2013 Headline: Former EIA chief warns against going 'overboard' on gas-fueled predictions 24
  25. 25. Association of Shareholder-Owned Electric Companies: Not worried about LNG exports  “I think LNG will become part of the mix, but I’m not terribly concerned what it’s going to do to natural gas pricing.” Michael Yakira, Chairman Edison Electric Institute Source: Platts Gas Daily, June 13, 2013 Headline: EEI chief downplays LNG exports’ price impact 25
  26. 26. Former Director of National Intelligence: LNG: Diplomatic benefits of exports  “It would be a major mistake not to do it in terms of US-Japanese relations.” Dennis Blair Retired Four Star Navy Admiral Director of National Intelligence 2009 –2010 Source: Ex-Obama adviser touts diplomatic benefit of LNG exports, Gas Business Briefing, April 8, 2013 26
  27. 27. Cambridge Energy Research Associates: Exporting is a cornerstone of foreign policy  “For decades, the United States has made the free flow of energy supplies one of the cornerstones of foreign policy. How can the United States… say to a close ally like Japan, suffering energy shortages from Fukushima… new natural gas exports to Japan are prohibited?” Testimony submitted for Hearings on “America’s Energy Security and Innovation” Subcommittee on Energy and Power of the House Energy and Commerce Committee Feb.5, 2013 Dan Yergin, CERA Founder Chaired the DOE Task Force on Strategic Energy Research and Development 27
  28. 28. American Security Project: LNG helps U.S. foreign policy goals  “Exporting LNG to American allies can improve their energy security… reduce the influence of unfriendly nations.”  “Fuel switching… to natural gas has had climate benefits for the U.S. – helping our allies do the same.” Nick Cunningham Policy Analyst American Security Project Author of the American Security Project study: The Geopolitical Implications of U.S. Natural Gas Exports – March 2013 28
  29. 29. Senior Advisor at Deloitte: Plenty of domestic natural gas  “With LNG exports… our allies get help. The U.S. economy benefits.  “And some folks we have more strained relations with take a little bit of a hit, so it seems like a win all the way around.” Peter J. Robertson Senior Advisor Oil & Gas Deloitte LLP Source first quote: Will Exporting Natural Gas Raise U.S. Prices? New Report Says Not Really, NPR, January 9, 2013 Second quote: Deloitte report boosts natural gas exports , Fuelfix.com – January 8, 2013 29
  30. 30. Natural Gas Leader at Deloitte: No global price on natural gas  “We don’t see a global gas price evolving because of high transportation costs.” Tom Choi Natural Gas Market Leader Deloitte MarketPoint LLC Deloitte: US LNG exports will face complex market dynamics, Oil and Gas Journal, Jan. 9, 2013 30
  31. 31. Author of LNG study for DOE: New data suggests more benefits  “Newer information suggests that the NERA study probably underestimated the net benefits to the U.S. economy from LNG exports.” Dr. W. David Montgomery Ph.D. Senior Vice President NERA Economic Consulting Prepared Testimony, Submitted to the Committee on Foreign Affairs Subcommittee on Terrorism, Nonproliferation, and Trade United States House of Representatives, April 25, 2013 31
  32. 32. Brookings Institution: We have a tremendous supply  “This is a unique moment in our nation’s history where our prodigious natural gas reserves allow us to rethink our natural gas policy and promote exports because we have far more natural gas than we will need domestically.” Charles Ebinger Director of the Energy Security Initiative Brookings Institution Source: http://www.ourenergymoment.org/latest-news/videos 32
  33. 33. Council on Foreign Relations: Restrictions Put U.S. At Trade Risk  “If [LNG] permit applications start being rejected, there’s a real potential for WTO lawsuits against the United States.” Michael A. Levi, Senior Fellow for Energy and the Environment Council on Foreign Relations Source: Energy and Climate Issues Awaiting Mike Froman at USTR, CFR blog - May 2, 2013 33
  34. 34. Laborers’ International Union: LNG exports mean more jobs  “The export of LNG can help drive additional U.S. natural gas production and support hundreds of thousands of additional U.S. jobs…” David L. Mallino Laborers’ International Union of North America Prepared Testimony, Submitted to the Committee on Foreign Affairs Subcommittee on Terrorism, Nonproliferation, and Trade United States House of Representatives, April 25, 2013 34
  35. 35. American Council for Capital Formation Get the government out of the way  “Exports have proven to be a net positive boost for the U.S. economy and LNG exports shouldn't be treated differently.” Margo Thorning American Council for Capital Formation “Exporting Gas Would Help the U.S.,” Wall Street Journal, May 27, 2013 35
  36. 36. U.S. Chamber of Commerce: LNG will help reduce trade deficit  “We are now in a position to export liquefied natural gas… thus reducing our trade deficit and bringing billions of dollars into the United States.” Thomas J. Donohue President and CEO U.S. Chamber of Commerce Source: U.S. Chamber: Liquefied Natural Gas (LNG) Exports Make Sense U.S. Chamber of Commerce press release - Jan 16, 2013 36
  37. 37. $45 billion-year chemical company: LNG exports help American chemical producers  “We as an industry support exports. We love free enterprise and exports.”  “We want [natural gas] producers to have better pricing because we’re not interested in the methane – but the liquids.” Jim Gallogly, CEO LyondellBasell Firm has annual revenues of $45 billion Second quote: U.S. chemical industry supports LNG exports, Akron Beacon Journal, April 2, 2013 First quote: US LNG exports should help US chem producers – LyondellBasell CEO, March 13, 2013 37
  38. 38. Institute for 21st Century Energy: Long lead time moderates prices  “Some may argue that any significant volume of exported LNG would create upward pressure on natural gas prices.  “However… construction of an export facility requires some three to five years, there would be ample time for the market signal… increasing production… significantly insulating against any long- term upward price pressure.” Karen Harbert President and CEO U.S. Institute for 21st Century Energy Source: Letter to Secretary of Energy Steven Chu, Jan. 24, 2013 38
  39. 39. American Chemistry Council: We support LNG exports  “We support exports of American- made products, including Liquefied Natural Gas, and we oppose imposition of any new LNG export bans or restrictions.” Source headline: Senate Natural Gas Forum Reaffirms LNG Exports are Positive for U.S. Economy, Workforce May 21, 2013 Cal Dooley President & CEO American Chemistry Council 39
  40. 40. Columbia University: Center on Global Energy Policy Keep LNG export permits coming  “Despite opposition from some on Capitol Hill, environmentalists and petrochemical firms, the Obama administration seems to have decided in favor of exports…  “They made the right call, and should continue to approve natural gas exports on both economic and geopolitical grounds.” Jason Bordoff Director of the Center on Global Energy Policy at Columbia University Previously served as senior director for energy and climate change, National Security Council 2009-2013 Guest Opinion: Keep the LNG export permits coming, The Hill newspaper, June 4, 2013 40
  41. 41. Rice University Little impact on prices  “The bottom line is that certification of LNG exports will not likely produce a large domestic price impact, although the [export] entities involved may be exposed to significant commercial risk.” Source: Rice study questions volume of future US natural gas exports Oil and Gas Journal, August 15, 2012 Kevin Medlock James A. Baker, III, and Susan G. Baker Fellow in Energy and Resource Economics Rice University 41
  42. 42. Southern Methodist University LNG means more jobs and investment  “Without access to new markets, drilling will stop and the associated economic benefits will go away…  “Energy policy that includes LNG exports will support new investments in America’s economy… create tens of thousands of new jobs and keep U.S. dollars at home.” Bernard L. Weinstein Associate Director, Maguire Energy Institute Southern Methodist University Source: Should America Exploit Energy Exports? National Journal, January 14, 2013 42
  43. 43. University of Michigan – Flint: US chemical and metals firms OK  “U.S. companies will have no trouble being competitive and profitable even with natural gas exports.” Source: Dow Chemical Will Still Be Globally Competitive With Natural Gas Exports According To 2009 Senate Testimony SeekingAlpha.com Mar 12 2013 Mark J. Perry Professor of economics and finance University of Michigan - Flint 43
  44. 44.  “U.S. energy trade in particular can enhance American power and influence by strengthening our ties to important allies… while at the same time weakening the petro-power of some of our adversaries such as Iran and Russia.” University of California - Davis: Exporting enhances American power Testimony before the Subcommittee on Energy and Power, U. S. House Committee on Energy and Commerce – May 7, 2013 Dr. Amy Myers Jaffe Executive Director, Energy and Sustainability Institute University of California - Davis 44
  45. 45. University of Texas – San Antonio Exporting natural gas will help stabilize U.S. prices  “Over the long haul, market dynamics—which include the ability to export without undue uncertainty or restriction—will best manage global supply and demand curves for natural gas. Evidence strongly suggests that limiting exports will simply have the unintended effect of also limiting supply.” Dr. Tom Tunstall University of Texas at San Antonio Research Director at the Institute for Economic Development Wall Street Journal Guest Opinion, May 29, 2013 45
  46. 46. What the Studies and Analysis Report
  47. 47. NERA report commissioned by DOE: Exporting good for our economy  “In all of the scenarios analyzed in this study, NERA found that the U.S. would experience net economic benefits from increased LNG exports…  “Across the scenarios, U.S. economic welfare consistently increases as the volume of natural gas exports increased.” Released to the Department of Energy December 3, 2012 47
  48. 48. NERA follow-up study: High LNG exports possible only if nat gas prices are low  “The market for LNG exports is self-limiting…  “High levels of exports can be expected only if natural gas is plentiful and inexpensive enough to produce so that prices remain below current levels, even with high levels of exports.” March 2014 48
  49. 49. Small Business & Entrepreneurship Council report: LNG exports help small businesses  “Expanded demand for U.S. natural gas internationally will be a net positive, resulting in greater U.S. natural gas production, increased investment, enhanced GDP growth, rising incomes, and more jobs.” May 2013 49
  50. 50. ICF International report for API: Positive economic impact  Exporting LNG will add between 73,100 and 452,000 new jobs between 2016 and 2035.  LNG exports are expected add between $15.6 to $73.6 billion annually to the nation’s GDP…  LNG exports are projected to have moderate impacts on domestic U.S. natural gas prices. May 15, 2013 50
  51. 51. Bipartisan Policy Center report: LNG exports little impact on prices  “Contrary to the concerns recently expressed by some large users of natural gas, increased exports are likely to have only a modest impact on domestic gas prices. “ May 2013 51
  52. 52. National Association of Manufacturers report: LNG permit delays violate WTO rules  “The delay in the granting of LNG export licenses constitutes export restrictions, which are not excused by any of the exceptions available for the protection of the environment or human health or for the conservation of natural resources.” November 2013 52
  53. 53. Bentek study: Limited number of facilities  “Even though plans for 19 LNG export terminals in North America could provide more than 24 Bcf/d of export capacity, BENTEK expects only six of these projects to come online by 2020.” September 2012 53
  54. 54. Deloitte study - 2011: Little impact on natural gas prices  “Given the model’s assumptions…. from 2016 to 2035. The $0.12/MMBtu increase represents a 1.7% increase in the projected average U.S. citygate gas price….” October 2011 54
  55. 55. Deloitte study - 2013: Little impact on natural gas prices  “Prices are projected to decrease fairly significantly in regions importing U.S. LNG, but only marginally increase in the U.S. The projected increase of average U.S. prices from 2016 to 2030 is about $0.15/MMBtu.” January 2013 55
  56. 56. American Council for Capitol Formation Low price impact from LNG exports  “The preponderance of the economic analyses of the impact exports of LNG from the U.S. show positive overall benefits in terms of jobs, investment and GDP growth.  “The impact on U.S. domestic natural gas prices rises will be relatively small, thus allowing U.S. customers to maintain a strong competitive advantage over our trading partners.” November 2013 56
  57. 57. U.S. Energy Information Administration report: Small impact to consumers  “On average, from 2015 to 2035, natural gas bills paid by end-use consumers in the residential, commercial, and industrial sectors combined increase 3 to 9 percent over a comparable baseline case with no exports… while increases in electricity bills paid by end-use customers range from 1 to 3 percent.” January 2012 57
  58. 58. ICF International LNG exports help reduce emissions  “Based on current information, LNG exports would have GHG emissions 43 to 52% lower than coal.” February 2014 58
  59. 59. Congressional Research Service report: Restricting exports has risks  “Restricting LNG exports may put the United States in a contradictory position vis-à-vis cases it has brought to the WTO, specifically against China for limiting the export of rare earths and other metals.  “The position of the United States as a promoter of free trade may also be challenged.” April 2013 59
  60. 60. MIT Study: LNG Exports Good for America  “A global ‘liquid’ natural gas market is beneficial to U.S. and global economic interests.... advances security interests through diversity of supply and resilience to disruption.” The fourth in a series of reports on energy issues Massachusetts Institute of Technology June 6, 2011 60
  61. 61. Rice University Study: LNG export concerns overstated  “The impact on U.S. domestic prices will not be large if exports are allowed.  “The long-term volume of exports from the U.S. will not likely be very large given expected market developments abroad.” August 10, 2012 61
  62. 62. Brookings Energy Security Initiative study: Plenty for all economic sectors  “The domestic U.S. natural gas resource base is large enough to accommodate the potential increased demand for natural gas from the electricity sector, the industrial sector, the residential and commercial sectors, the transportation sector, and exporters of LNG.” May 2012 62
  63. 63. American Security Project report: LNG can help America’s allies  “Exporting liquefied natural gas to American allies can improve their energy security… and reduce the influence of unfriendly nations using energy as a political weapon.” March 2013 Recent/former ASP board members include Secretary of Defense Chuck Hagel and Secretary of State John Kerry 63
  64. 64. Peterson Institute for International Economics report: Restricting LNG exports – bad idea  “Restrictions on LNG exports as a device for shifting income between sectors are no more justified than restrictions on exports of coal, timber, cotton, and a long list of other commodities.” February 2013 64
  65. 65. Heritage Foundation backgrounder: Net gains favor LNG exports  “In reality, the concerns regarding American natural gas exports are unsubstantiated and exaggerated and do not outweigh the broad economic benefits for America.” February 2013 65
  66. 66. Manhattan Institute report: Exports will help America’s Economy  “Over the coming decade, private investment in the American energy renaissance is projected to grow to a cumulative $5 trillion—without subsidy or taxpayer assistance.” May 2013 66
  67. 67. Canadian Energy Research Institute study: Many global challenges ahead  “Aside from the internal challenges to North American LNG export projects, external factors could also limit LNG exports from the US and Canada.  “Natural gas discoveries made around the world over the past few years have resulted in a growing number of proposals for new natural gas liquefaction terminals or expansions of existing terminals.” January 2013 67
  68. 68. Intelligence report: LNG is a tool to help allies  “Russia’s budget needs are rising and its revenues are stagnating…  “U.S. LNG exports… will help diversify market supplies – particularly in Asia – and result in modest price pressure on Russia as other supplies are freed up for Europe.” 68 Securing America’s Future Energy (SAFE) and Roubini Global Economics April 2014
  69. 69. What the Editorials Say
  70. 70. Natural gas exports: A boon to the economy  “USUALLY, OPPONENTS of freer trade argue that Americans shouldn’t be buying so many cheap products from abroad… But when it comes to exporting some of this nation’s abundant supplies of natural gas, those who oppose opening up to the world turn that logic on its head…  “The government should permit energy companies to sell as much of the fuel as the economics warrant, whether in Germany or Germantown.” December 07, 2012 70
  71. 71. Exporting natural gas would help America  “Blocking exports of natural gas might hold prices down a bit, but it would dampen production...  “Export demand will create more drilling-related jobs at home and give suppliers more incentive to produce.  “The best solution to this nice-to-have problem is to do what the U.S. usually does best, which is to let the free market work.” Editorial June 20, 2012 71
  72. 72. Energy Economics in One Lesson: Natural gas exports are good for America  “The same folks who complain about America's trade deficit now want the U.S. government to ban the export of liquefied natural gas (LNG). This is one way to ruin what has been a very rare piece of good U.S. economic news.” Editorial December 6, 2012 72
  73. 73. Natural Gas Exports: A Boost the U.S. Economy Needs  “It's painful to watch politicians and narrow interests block legitimate business opportunities, to see lawmakers pit consumers against producers, granting favored status to one while handicapping the other….  “Rather than obstruct, Washington should approve the liquefied natural gas facility applications without delay.” February 11, 2013 73
  74. 74. Export natural gas: Lift U.S. Economy & Help Allies  Nov. 25, 2012:“Liquid natural gas exports could add billions to the U.S. economy, create tens of thousands of long- term jobs and help narrow the trade gap.”  May 8, 2013: “Imports from the U.S. could also give European countries greater power to bargain on prices with Russia… All that’s missing are the U.S. facilities to liquefy gas for export.” By the Editors Nov 25, 2012 & May 8, 2013 74
  75. 75. Latest editorials – March 2014  Denver Post: “Speeding up U.S. natural gas export was a good idea even before the crisis in Crimea, but it’s an even better idea now.” March 10, 2014  NY Times: “Increasing natural gas exports could serve American foreign-policy interests in Europe.” March 6, 2014  USA Today: “The United States could export 12 billion cubic feet a day, equal to about 15% of current production, while hardly breaking a sweat. The Energy Department estimates that this would have only a modest impact on domestic prices, more than offset by the economic gain.” March 20, 2014  Washington Post: “DEBATE HAS raged over whether the United States can fight Vladimir Putin on the Russian president’s most favorable ground: energy politics. It can, and it should, particularly because there’s an obvious path forward that coincides with the United States’ — indeed, the world’s — economic interests. That path is lifting irrational restrictions on exports and making it easier to build natural gas export terminals.” March 22, 2014 75
  76. 76. Thanks 76
  77. 77. Questions? Jeff Schrade Director of Government Affairs Natural Gas Supply Association 1620 Eye Street, NW, Suite 700 Washington, DC 20006 Jeff.Schrade@ngsa.org Direct: (202) 326-9316 Cell: (202) 870-3277 About NGSA: The Natural Gas Supply Association was formed in 1965 and represents the major producers of natural gas on issues of importance in Washington, DC. The United States is now the world's largest producer of natural gas, and NGSA's member companies explore, drill for and supply approximately one-third of the natural gas used nationwide. 77

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