• 2 hours LNG Glut To Continue Into 2020s, IEA Says
  • 4 hours Oil Nears $52 With Record OPEC Deal Compliance
  • 7 hours Saudi Aramco CEO Affirms IPO On Track For H2 2018
  • 9 hours Canadia Ltd. Returns To Sudan For First Time Since Oil Price Crash
  • 10 hours Syrian Rebel Group Takes Over Oil Field From IS
  • 3 days PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 3 days Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 3 days Syrian Rebels Relinquish Control Of Major Gas Field
  • 3 days Schlumberger Warns Of Moderating Investment In North America
  • 3 days Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 3 days Energy Regulators Look To Guard Grid From Cyberattacks
  • 3 days Mexico Says OPEC Has Not Approached It For Deal Extension
  • 3 days New Video Game Targets Oil Infrastructure
  • 3 days Shell Restarts Bonny Light Exports
  • 3 days Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 4 days Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 4 days British Utility Companies Brace For Major Reforms
  • 4 days Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 4 days Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 4 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 4 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 4 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 4 days Rosneft Signs $400M Deal With Kurdistan
  • 4 days Kinder Morgan Warns About Trans Mountain Delays
  • 5 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 5 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 5 days Russia, Saudis Team Up To Boost Fracking Tech
  • 5 days Conflicting News Spurs Doubt On Aramco IPO
  • 5 days Exxon Starts Production At New Refinery In Texas
  • 5 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 6 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 6 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 6 days China To Take 5% Of Rosneft’s Output In New Deal
  • 6 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 6 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 6 days VW Fails To Secure Critical Commodity For EVs
  • 6 days Enbridge Pipeline Expansion Finally Approved
  • 6 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 6 days OPEC Oil Deal Compliance Falls To 86%
  • 7 days U.S. Oil Production To Increase in November As Rig Count Falls

Breaking News:

LNG Glut To Continue Into 2020s, IEA Says

Nat Gas Exports Could Add $73B To U.S. Economy

natural gas pipeline

Higher natural gas exports from the U.S. in the years to 2040 could add between US$50 billion and US$73 billion to the economy and create 220,000-452,000 new jobs, ICF said in a press release from the American Petroleum Institute.

The authors of the report, titled Impact of LNG Exports on the U.S. Economy: A Brief Update, note that its purpose was to check whether there is really a cause for worry that raising LNG exports would lead to higher natural gas prices at home as well as other, related negative consequences.

The report is a revision of an earlier one compiled in 2013, and the revision suggests the situation in U.S. natural gas has changed for the better. First, there is a greater resource base thanks to tech advances in production. Today, ICF says, the Lower 48 and Canada can produce 1,798 trillion cu ft of gas at US$5 per mmBtu in 2016 dollars. This compares with 1,250 trillion cu ft for the same price four years ago.

As regards the global natural gas market, the study suggests that the market for U.S. LNG exports has grown substantially since 2013 and now the country can export between 8 and 24 billion daily versus earlier projections of 4-16 billion cu ft daily.

The reason the U.S. can export more, besides ample supply, is also lower cost. In 2013, ICF projected that if exports rise, natural gas prices will increase by US$0.11-0.12 per mmBtu. Now, the market researcher says the price increase will be in the range of US$0.05-0.06 per mmBtu.

Related: Scotland To Permanently Ban Fracking

Factors such as a drive for cleaner energy sources will support demand for U.S. natural gas, and so will the delays and production outages at non-U.S. LNG projects, ICF noted in its report. Lower terminal construction coasts on the Gulf Coast will also support U.S. LNG’s competitiveness.

On the other hand, slower economic growth globally will act as a head wind for natural gas demand, Also, floating production, storage, and offloading vessels are starting to be deployed by international competitors, encroaching on the competitiveness of U.S. supplies.

Despite these challenges, the ICF study suggests growth in natural gas exports will ultimately be beneficial for the economy at no great additional cost.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • John Machowicz on October 06 2017 said:
    How much it adds to the economy does not matter when we are in the midst of a Climate Crisis caused by the reckless pursuit of extracting fossil fuels. Who will be profiting from this is really the issue? Follow the money. https://www.thedailybeast.com/how-congress-makes-regular-taxpayers-foot-the-bill-for-oil-pipeline-fat-cats
  • Refman on October 04 2017 said:
    Best be careful we don't follow Australia's example and let these companies export so much that Natural Gas prices sky rocket here at home.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News