The US Department of Energy (DOE) released an updated study confirming that increased US LNG Exports will significantly benefit the US economy. The study, released in late 2015, was conducted by Rice University’s Baker Institute and Oxford Economics. This is the latest in a growing body of research showing the great benefit of increasing US LNG exports.
The study confirmed and elaborated on a December 2012 study conducted by National Economic Research Associates (NERA), which concluded:
“Across all [studied] scenarios, the U.S. [is] projected to gain net economic benefits from allowing LNG exports. Moreover, for every one of the market scenarios examined, net economic benefits increased as the level of LNG exports increased. In particular, scenarios with unlimited exports always had higher net economic benefits than corresponding cases with limited exports.”
Exporting natural gas would directly support thousands of U.S. jobs in engineering, manufacturing, construction, and operation of the export infrastructure, as well as others indirectly along the equipment supply chain. Contrary to claims that LNG exports would reduce domestic supply, LNG exports will drive additional U.S. natural gas production and support thousands of additional jobs created through increased production: An IHS report on the economic impacts of shale gas estimates that for every 1 Bcf/d of shale gas production, approximately 32,000 total jobs are supported throughout the economy
An October 2014 report from the EIA confirmed previous findings that higher levels of LNG exports would yield greater economic gains for the U.S. The report found that higher levels of exports prompt more U.S. growth and increase investment in American energy security. Across the board, demand for exports was met with higher domestic production, showing that America has the resources to supply affordable energy here at home, while lowering the trade deficit, creating new jobs, and supporting our allies overseas. Even in a pessimistic scenario the EIA called ‘particularly implausible’, the economic gain for America far outweighed a modest increase in natural gas prices. In more likely scenarios, the potential change in prices was marginal, with an impact on electricity bills near zero. More importantly, America’s economy will grow as exports grow, providing more jobs and more income here at home.
– For more information on the greater impact of US LNG Exports go to: http://www.lngexports.com
Find the 2012 study online here.
Find the 2015 study online here.