Capitalize on Robust U.S. Natural Gas Supply
DOE’s decision to allow Freeport LNG to export liquefied natural gas to countries that do not have a Free Trade Agreement(FTA) with the U.S. is to be commended. However, in order to ensure that the U.S. receives the maximum benefit from our vast supplies of natural gas, DOE and FERC should rapidly approve the remaining 20 export applications. New research shows that allowing larger amounts of LNG to be exported will generate an average of 73,100 to as many as 452,300 new jobs in the U.S. over the 2016-2035 period, thus a slow DOE/FERC approval process will hinder economic recovery (see http://www.api.org/news-and-media/news/newsitems/2013/may-2013/~/media/Files/Policy/LNG-Exports/API-LNG-Export-Report-by-ICF.pdf Furthermore, by moving slowly in reviewing permit applications, the U.S. is likely to reduce its global influence and share of natural gas markets since our potential customers abroad may seek other suppliers. In addition, U.S. companies seeking export permits face increased uncertainty and higher hurdle rates for the large investments in export facilities required if permits are not approved expeditiously since global natural gas markets can change rapidly. Finally, the language of the DOE order (see page 7 at http://energy.gov/fe/downloads/fe-docket-no-10-161-lng) suggests that DOE may monitor natural gas prices as it considers export applications rather than letting markets determine…