Energy Tomorrow Blog
Posted April 19, 2013
Although some say exporting U.S. natural gas would increase domestic prices, a Deloitte analysis says “the impact domestically is small in terms of upward price movement, and the impact (of exports) on the economy is very large… So exporting should be a good idea.”
Wall Street Journal – Rise in U.S. Gas production fuels Unexpected Plunge in Emissions
Last year, the paper reports, 30 percent of power in the U.S. came from natural gas, up from 19 percent in 2005, driven by hydraulic fracturing and horizontal drilling that have unlocked large and inexpensive new supplies of the fuel. This increase in natural gas production has helped drop U.S. CO2 emissions to their lowest level since 1994.
Posted April 11, 2013
New York Post – Gov. Cuomo’s Ugly Message to Businesses
Gov. Andrew Cuomo likes to declare that New York is “open for business,” but his prolonged refusal to OK hydraulic fracturing sends the opposite message, John Krohn writes in a guest op-ed.
Rockland County Times – Exports Grow Our Economy, Lift Ban on Natural Gas
In an op-ed, Margo Thorning writes that “the United States should capitalize on the comparative advantage it has over other countries with natural gas. In fact, respected economic consulting firm NERA recently analyzed LNG exports for the Energy Department and found that across every market scenario, increased exports would benefit the U.S. economy.”
Posted March 21, 2013
Posted March 15, 2013
Opponents of a free market for natural gas have been trumpetinga new study which purports to show that LNG exports would be an economic negative for the United States. This flies in the face of analysis done by the Department of Energy, The Brookings Institute, ICF International and others which showed that to boost economic activity open markets are the way to go. So we took a look at the study to figure out why their conclusions are not consistent with other industry or government projections. We found some serious biases and inconsistent assumptions added up to a fatally flawed report. Here are a few specifics.
The employment impact analysis is flawed because it assumes no incremental natural gas production.
Posted February 25, 2013
New analysis by the consulting firm ICF International indicates significant potential economic benefits from the export of U.S. liquefied natural gas (LNG):
- An average across the studied cases of 213,000 new jobs supported by LNG exports from 2015 to 2035.
- An average across the studied cases of 24,000 new jobs in the manufacturing sector over the same period.
- More than $720 billion in cumulative economic growth over the same period.
- An additional 291,000 barrels per day in natural gas liquids – the critical feedstock for chemicals and other industrial sectors – by 2035.
Posted February 22, 2013
A bipartisan group of U.S. senators has written Energy Secretary Steven Chu, urging the government to support liquefied natural gas (LNG) exports for the good of our economy and to improve our trade balance. Key points in their reasoning:
- Increasing demand for U.S. natural gas will be easily met by increases in production. The letter cites U.S. Energy Information Administration projections that a 20 percent increase in domestic natural gas demand between now and 2040 will be fully offset by a 40 percent increase in production.
- Domestic production will be stimulated if producers have greater access to U.S. natural gas reserves onshore and offshore – as well as greater access to “consumption markets.” This will bring job creation, economic growth and generate an in-flow of revenue from abroad.
- Artificial restraints on the marketing of U.S. natural gas tend to inhibit future investment in development.
Posted February 12, 2013
OK, so here’s the deal: Seldom is the annual State of the Union message going to be confused with the Gettysburg Address for lyric quality. Historically, presidents use the speech to set out detailed policy agendas. As listeners seek focus during an oration that might stretch an hour or more, we’re here to help.
Posted February 4, 2013
Why isn’t the world’s leading producer of natural gas also its leading exporter – or at least among the world’s top exporters? The answer is nearly as simple as the first two: Because so far we’re not taking full advantage of our resources by recognizing the export opportunities out there and working to supply them.
Posted January 28, 2013
The campaign against the free trade of U.S. liquefied natural gas (LNG) generally goes down a few of tracks:
- Consumers will be hurt as “excessive” LNG exports stretch demand, making natural gas more expensive here at home.
- Blocking or restricting LNG exports will best fuel U.S. economic growth.
- The federal government needs to prevent “unrestricted” or “unlimited” LNG exports.
Fortunately, this doesn’t have to be one opinion against another. The U.S. Energy Department has a recent, comprehensive study on these issues in hand, in addition to reports and studies by other reputable organizations. The conclusions, based on scholarly research, should guide the federal decision on licensing the construction of LNG export facilities – more than a dozen of which are awaiting approval.
Posted January 25, 2013
This week API, on behalf of the U.S. oil and natural gas industry, furnished comments on the Energy Department’s 2012 study of the impact of exporting U.S. liquefied natural gas (LNG). You can read them in full here, but let’s cover some of the main points.