America’s Energy Advantage (AEA) has released a statement in response to the recent approval of the FLEX II liquefied natural gas (LNG) export application, granted by the Department of Energy (DOE).
Jennifer Diggins, chair of AEA, issued the following statement:
"The benefits of America's newfound natural gas abundance to our economy – robust job creation, manufacturing investment, affordable consumer prices and lower utility bills – are in the public interest of all Americans, and the export volume of this valuable national resource should be considered in this light. The Department of Energy continues to rely on obsolete data and ill-defined standards to justify continued LNG exports. Unchecked LNG exports will threaten America's manufacturing renaissance, double or even triple prices for consumers, and negatively impact investment and job creation.
“Why is the Department of Energy moving so quickly to give away America's natural gas to our global competitors when there are so many Americans still looking for good work here at home? Why is the Department of Energy giving away this strategic commodity to countries that refuse to open their markets to other American made goods and services? We should not reward protectionist behaviour.
“Foreign and domestic companies are investing in new US manufacturing because of America's energy advantage. With sound LNG policy, we import jobs. We renew our call for a full DOE review of the cumulative market impacts of its decisions to date before any additional approvals are granted."
Demand will exceed projections
Research undertaken by a number of independent energy market analysts has predicted that the demand of natural gas will dramatically exceed DOE projections.
- In March 2013, Charles Rivers Associates reported that unchecked exports of US natural gas could lead to a tripling of prices from current levels by 2030.
- In September 2013, ConocoPhillips reported domestic natural gas demand will exceed DOE projections by 30% in 2017.
- JP Morgan also noted in September that natural gas prices will more than double current prices over the next three years, reaching US$ 8 per million Btu by 2016.
Adapted from press release by Katie Woodward
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/20112013/aea_response_to_export_approval_467/