• 5 minutes Global Economy-Bad Days Are coming
  • 8 minutes IT IS FINISHED. OPEC Victorious
  • 14 minutes Venezuela continues to sink in misery
  • 17 minutes Could Tesla Buy GM?
  • 1 hour Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 6 hours OPEC Cuts Deep to Save Cartel
  • 6 hours Rage Without Proof: Maduro Accuses U.S. Official Of Plotting Venezuela Invasion
  • 9 hours U.S. Senate Advances Resolution To End Military Support For Saudis In Yemen
  • 2 hours How High Can Oil Prices Rise? (Part 2 of my previous thread)
  • 18 hours Price Decline in Chinese Solar Panels
  • 4 hours What will the future hold for nations dependent on high oil prices.
  • 2 hours Sleeping Hydrocarbon Giant
  • 2 hours USGS Announces Largest Continuous Oil Assessment in Texas and New Mexico
  • 7 hours And the War on LNG is Now On
  • 5 hours Air-to-Fuels Energy and Cost Calculation
  • 19 hours Rigs Down
OPEC+ Gives Oil Bulls Hope

OPEC+ Gives Oil Bulls Hope

OPEC+ has given oil bulls…

2019: A Pivotal Year For OPEC

2019: A Pivotal Year For OPEC

2019 is shaping up to…

U.S. LNG Export Industry to be Worth $47 Billion a Year by 2020


A recent study carried out by NERA Economic Consulting on behalf of the US Energy Department has found that the economic benefits of exporting its cheap and abundant natural gas in the form of LNG far outweigh the negative potential of an increase in prices for domestic consumers.

Already more than a dozen LNG projects have been proposed by various energy companies across the US, all planning to export to Europe and Asia where gas commands a far higher price, however the White House has always been very reluctant to approve any of these projects and create a huge natural gas export market for fear of causing domestic utility bills to increase.

Related Article: Former Enemies Japan and Russia to Trade LNG?

Yes domestic prices are bound to increase a little, but the investment and jobs created by building large LNG terminals, along with the export earnings more than make up for a small increase in price.

Most Americans would be much better off.

Of all of the applications, only one LNG export terminal has been approved, that of Cheniere Energy (LNG) in Louisiana. Now that the report has been published many more projects are expecting to receive approval.

It was predicted that natural gas exports could generate $47 billion of economic activity in 2020, by which time several new LNG terminals would be in operation.

By. Joao Peixe of Oilprice.com



Join the discussion | Back to homepage

Leave a comment
  • Doug Sheridan on December 06 2012 said:
    Having worked in the natural gas industry in the early 2000s, I recall that it was perceived as an almost "certainty" that the U.S. was going to have to import LNG to meet future demand. Import and regasification terminals were built. Long-term contracts were signed. Then the shale revolution hit. Now it looks like, almost with the same "certainty", that the U.S. is going to be awash in natural gas for decades. Now those terminals and plants are now being rebuilt to liquify gas. But the rest of the world might end up awash in gas in 10 years as well, as it seeks to exploit its own shale-gas reserves. So, exporting may therefore not even be an opportunity. But our free enterprise system allows persons and companies that what to risk their own money positioning themselves for a possible export boom to do so. As long as public money is not used to subsidize natural gas exports, I say let them knock themselves out. And if they are right, let them keep the spoils.

Leave a comment

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