DOE releases report on LNG exports' broader economic benefits

Increased natural gas exports would broadly benefit the US economy, a Dec. 3 report commissioned by the US Department of Energy concluded. “Moreover, for every one of the market scenarios examined, net economic benefits increased as the level of LNG exports increased,” the report by Washington, DC-based NERA Economic Consulting said.

The new report followed one that DOE’s Fossil Energy Office released in January. This report by the department’s Energy Analysis Office suggested that US LNG exports could lead to higher prices, more production, less consumption, and more imports from Canada. FEO asked for it in August 2011.

It commissioned the second study to determine how LNG exports could affect the public interest, particularly the nation’s energy and manufacturing sectors, FEO said on Dec. 5. It posted the new report into 15 pending LNG export applications DOE is reviewing, and will accept public comments on it until Jan. 24, 2013.

Officials at several organizations responded immediately. “Today’s DOE report highlights the game changing benefits of exporting energy,” said Erik Milito, the American Petroleum Institute’s upstream and industry operations group director. “This is a big opportunity for the administration to bolster job creation and economic growth and to address the backlog of LNG export applications.”

Bill Cooper, president of the Center for Liquefied Natural Gas, said, ”The report’s key finding is that across all export scenarios, the United States will experience ‘net economic benefits from allowing LNG exports’.”

Cooper said, “DOE also finds that LNG exports would increase American households’ real income at a time when millions of families are struggling financially. In addition, and as this latest report from DOE clearly shows, we can export LNG without adversely affecting the availability or affordability of our abundant gas supplies.”

Paul N. Cicio, president of the Industrial Energy Consumers of America, also considered the report an important step and said IECA would analyze it thoroughly. Initially, however, he found four weaknesses:

• There is no comparison of LNG exports and using US gas to create manufacturing and industrial jobs.

• The report relied on demand projections from EIA’s 2011 Annual Energy Outlook, which predicted that demand for gas to generate electricity would decrease by 2010, and there would only be a short-term industrial gas demand increase.

• The report did not adequately address potential impacts from US Environmental Protection Agency and US Bureau of Land Management regulations on domestic gas drilling.

• The report did not address a potential one-third drop in US gas production if Congress and the Obama administration repealed the intangible drilling costs federal tax provision.

“Once export applications are approved, there is no putting the genie back in the bottle,” Cicio warned. “The export application approvals are for 20-30 year time periods, and a lot can happen. For this reason, it is important that policymakers thoughtfully evaluate the implications.”

Contact Nick Snow at nicks@pennwell.com.

Related Articles

Kinder Morgan to deliver natural gas to Corpus Christi Liquefaction

12/11/2014 Kinder Morgan Inc. (KMI) companies Kinder Morgan Texas Pipeline, Kinder Morgan Tejas Pipeline, and Tennessee Gas Pipeline Co. (TGP) have entered in...

Pipeline leak dampens Atlantic LNG production

12/01/2014 Atlantic LNG (ALNG) reported a 35% reduction in LNG production because of insufficient natural gas supply from Trinidad and Tobago’s National Gas C...

Freeport LNG nears construction phase

11/19/2014 Freeport LNG Expansion LP expects later this month to close on financing and begin construction on the first two trains of its natural gas liquefac...

ANGA president calls for sharper focus on gas transportation issues

11/17/2014 America’s Natural Gas Alliance Pres. Martin J. Durbin called for a stronger focus on transportation as he outlined issues that the US gas industry ...

DOE permits LNG exports to non-FTA countries from Freeport terminal

11/14/2014 The US Department of Energy authorized LNG exports to countries not having a free-trade agreement with the US from Freeport LNG Expansion LP and FL...

Santos group releases draft EIS for Gladstone LNG expansion

11/14/2014 A group led by Santos Ltd. Has released a draft environmental impact statement (EIS) for a proposed expansion of a gas field development that would...

Bear Head LNG applies for NEB export license

11/07/2014 Bear Head LNG Corp., a wholly owned subsidiary of Liquefied Natural Gas Ltd. (LNGL), filed an application with Canada’s National Energy Board (NEB)...

Better transportation seen as key to North American energy promise

11/07/2014 Significant transportation improvements will be essential for North America to fully realize its dramatically brighter oil and gas future, speakers...

Santos completes first gas processing hub for Gladstone LNG project

11/04/2014 The first of three Santos Ltd.-operated gas processing hubs for the Gladstone LNG (GLNG) project has been completed in the Surat-Bowen basin fields.

White Papers

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Plant Design for Lean Construction - at your fingertips

One area which can provide improvements to the adoption of Lean principles is the application of mobil...
Sponsored by

How to Keep Your Mud System Vibrator Hose from Getting Hammered to Death

To prevent the vibrating hoses on your oilfield mud circulation systems from failing, you must examine...
Sponsored by

Duty of Care

Good corporate social responsibility means implementing effective workplace health and safety measures...
Sponsored by

Available Webcasts


On Demand

Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


Utilizing Predictive Analytics to Optimize Productivity in Oil & Gas Operations

Tue, Nov 18, 2014

Join IBM on Tuesday, November 18 @ 1pm CST to explore how Predictive Analytics can help your organization maximize productivity, operational performance & associated processes to drive enterprise wide productivity and profitability.

register:WEBCAST


US HYDROCARBON EXPORTS Part 3 — LNG

Fri, Nov 14, 2014

US LNG Exports, the third in a trilogy of webcasts focusing on the broad topic of US Hydrocarbon Exports.

A discussion of the problems and potential for the export of US-produced liquefied natural gas.

These and other topics will be discussed, with the latest thoughts on U.S. LNG export policy.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected