ICF study outlines LNG exports’ benefits to US economy

LNG exports could create at least 73,100-145,100 and up to 220,100-452,300 new US jobs over 20 years while having a minimal impact on US gas prices, a new ICF International study commissioned by the American Petroleum Institute concluded.

The study, US LNG Exports: Impacts on Energy Markets and the Economy, also found LNG exports would increase US gross domestic product by $15.6-73.6 billion/year from 2016 to 2035. The projection included the impacts of liquids that would be produced with the gas, greater petrochemical (olefins) production from more abundant natural gas liquids feedstock, and all economic multiplier effects.

As many as 25,000 of the new jobs would be in manufacturing, the study indicated. “You’re going to see a corresponding growth in manufacturing as LNG exports take off,” said US Rep. Bill Johnson (R-Ohio), who chairs the recently formed House LNG Export Working Group, which released the report at its first public meeting on May 15.

“I find that when I mention exporting natural gas, I get calls from other countries asking when we’re going to decide to do it,” added Rep. James Lankford (R-Okla.), another member of the group who also chairs the Oversight & Government Reform Committee’s Energy, Policy, Health Care, and Entitlement.

Harry Vidas, an ICF International vice president who directed the study, said ICF used a base-case scenario with 4 bcfd of exports, a medium case with 8 bcfd, and a high case with 16 bcfd.

An 8-25% market share

“There are many countries which are trying to market their excess gas,” he noted, pointing to 63 foreign LNG projects that potentially could export 50.5 bcfd. The US could wind up with an 8-25% incremental share of the potential market, he indicated.

The study also found that 79-88% of US LNG exports would be offset by new domestic production. “This would have a more positive economic impact than taking the gas from other uses,” Vidas said.

Gas liquid volumes would grow because they would be stripped out of the gas before it is liquefied, he indicated. “[Natural gas liquids] such as ethane and propane are important to the petrochemical industry,” Vidas said.

“A lot of manufacturing jobs associated with more LNG exports would be created,” Vidas said, adding, “In order to drill wells to produce the gas, you need manufactured goods. There also would be a small net jobs gain in the petrochemicals sector.”

Vidas said ICF’s study basically confirmed conclusions National Economic Research Associates reached when it study LNG export impacts for the US Department of Energy, which is considering whether authorizing them to countries which don’t have a free trade agreement with the US would be in the national interest.

Both found that LNG exports would produce net economic benefits which would grow as volumes increased, he said.

Lankford said the Natural Gas Act presumes that LNG exports would be allowed. “We need to make sure arbitrary limits aren’t imposed,” he maintained.

Contact Nick Snow at nicks@pennwell.com.

Related Articles

EPP kills plans for Bakken-to-Cushing crude oil pipeline

12/15/2014 Enterprise Products Partners LP (EPP) has elected not to proceed with development of its proposed crude oil pipeline that would have extended 1,200...

Woodside to buy Apache’s interests in Wheatstone, Kitimat LNG for $2.75 billion

12/15/2014 Woodside Petroleum Ltd. has agreed to acquire interest in the Wheatstone LNG and Kitimat LNG projects, respectively in Western Australia and Britis...

Gas agreement seen firming China-Russia energy ties

12/15/2014 A Nov. 9 framework agreement for another large gas-supply deal between OAO Gazprom and China National Petroleum Corp. remains far from concluded bu...

Falling prices may pose new test for China oil policies, speakers say

12/15/2014 China, which successfully revised its oil strategy in response to new technologies since 2008, could face fresh tests if prices stay low for a prol...

Watching Government: Russia: On the ropes?

12/15/2014 Russia's Dec. 1 cancellation of its South Stream natural gas pipeline was not surprising. European nations have signaled for years that they intend...

ExxonMobil forecasts 35% higher world energy demand by 2040

12/15/2014 A significantly bigger global middle class, expanded emerging economies, and 2 billion more people will contribute to 35% higher world energy deman...

API: Producers reducing methane emissions already

12/15/2014 US oil and gas producers are reducing wellhead methane emissions already and don't need ill-conceived, overly prescriptive federal regulations, Ame...

West Cornwall Township hears from Sunoco Logistics

12/12/2014

Sunoco Logistics Partners outlined its safety systems during a West Cornwall Township meeting in Pennsylvania on Nov. 10.

ETP eyes larger capacity for planned Bakken pipe

12/12/2014 Energy Transfer Partners LP has launched a binding expansion open season to boost capacity on a planned pipeline system that would move oil from th...

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