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DOE Macroeconomic Study on LNG Exports: Key Findings

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DOE MACROECONOMIC STUDY ON LNG EXPORTS: KEY FINDINGS

LNG AN ECONOMIC WINNER FOR THE ENTIRE U.S. ECONOMY

  • “[F]or every one of the market scenarios examined, net economic benefits increased as the level of LNG exports increased. In particular, scenarios with unlimited exports always had higher net economic benefits than corresponding cases with limited exports.” (DOE report, p. 1)
  • “In all of these cases, benefits that come from export expansion more than outweigh the losses…” (DOE report, p. 1)
  • “In all of the scenarios analyzed in this study, NERA found that the U.S. would experience net economic benefits from increased LNG exports.” (DOE report, p. 6)
  • “Even with the highest prices estimated by EIA for these hypothetical cases, NERA found that there would be net economic benefits to the U.S., and the benefits became larger, the higher the level of exports.” (DOE report, p. 12)
  • “In conclusion, the range of aggregate macroeconomic results from this study suggests that LNG export has net benefits to the U.S. economy.” (DOE report, p. 78)

 

EXPORTS BENEFIT CONSUMERS

  • “The net result is an increase in U.S. households’ real income and welfare.” (DOE report, p. 6)
  • “All export scenarios are welfare-improving for U.S. consumers…” (DOE report, p. 55)
  • “[The] additional sources of income for U.S. consumers outweigh the loss associated with higher energy prices. Consequently, consumers, in aggregate, are better off as a result of opening up LNG exports.” (DOE report, p. 55)

 

MINIMAL PRICE IMPACTS, NO LINKAGE TO OIL PRICES

  • “Natural gas price changes attributable to LNG exports remain in a relatively narrow range across the entire range of scenarios.” (DOE report, p. 2)
  • “In particular, the U.S. natural gas price does not become linked to oil prices in any of the cases examined.” (DOE report, p. 6)
  • “However, the effects of higher price do not offset the positive impacts from wealth transfers and result in higher GDP over the model horizon in all scenarios.” (DOE report, p. 56)