“The approval of the Freeport LNG export application marks a good day for America.  The overwhelming evidence supports LNG exports as good for our economy, our workforce, our industries, and our trading partners.  Now that DOE has had a considerable amount of time to examine the issues, it needs to focus its efforts on the approval process so Americans may realize the benefits LNG exports can bring to our economy.”

To learn more about the benefits of LNG exports, download CLNG’s fact sheet HERE.

The post CLNG Commends DOE on Latest LNG Export Approval, Calls for More appeared first on CLNG.

“The overwhelming support shown yesterday is a testament to the qualifications Dr. Moniz will bring to the Department of Energy (DOE). With his confirmation complete, Dr. Moniz is now in a position to conclude the extensive review of all pending LNG export permits and accelerate the approval process. LNG exports will help to revitalize U.S. manufacturing by creating jobs and generating substantial government revenue.” 

To learn more about the benefits of LNG exports, download CLNG’s fact sheet HERE.

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 T. Boone Pickens, chairman of BP Capital Management, voiced support for natural gas exports during an interview on CNBC’s “Squawk on the Street.” Mr. Pickens pointed out that the U.S. enjoys the cheapest energy prices in the world, with natural gas selling at steep discounts compared to global prices.

Here’s what Mr. Pickens had to say when asked if the United States should allow natural gas to be sold overseas:

“Well, sure. I mean, the producers have gone out and drilled for the natural gas. They should be entitled to get into the best markets in the world. So let them have it. Why should you keep natural gas prices down to favor other industries? It doesn’t make sense. When you export natural gas you’re going to create a lot of jobs. And if you look at the industry, the industry has created a lot of jobs. So, go ahead and move it out, sell it.”

Watch the full interview HERE.

The post T. Boone Pickens speaks in support of LNG exports appeared first on CLNG.

-Ken Ditzel, principal, energy practice, Charles River Associates (CRA)

-David Montgomery, senior vice president, NERA Economic Consulting

-Claude Barfield, AEI Resident Scholar, former consultant to the Office of the United States Trade Representative

-Wallace Tyner, energy economist and James and Lois Ackerman Professor of Agricultural Economics at Purdue University

Ken Ditzel opened the discussion by running through a series of criticisms that Dow Chemical commissioned CRA to study regarding the NERA macroeconomic study on LNG exports.

David Montgomery responded, noting the bias of the CRA analysis and flaws in its approach of using ammonia as an example industry scenario:

“I thought we were going to be debating the analysis, not hearing a presentation of Dow Chemical’s point of view on why it should be receiving more of the rents from natural gas production in the United States than the market would normally assign to it.

“What you’ve just heard is just simply plain bad economics.  It misrepresents what was in our study, it makes claims that are simply untrue about how markets work, it perpetuates both labor and energy theories of values that I thought we had been educated out of decades ago and it holds up as an example of the chemicals industry, the one part of the industry that we know is highly susceptible to natural gas prices, always has been, appears and disappears with every fluctuation in natural gas prices, and has never mattered to the U.S. economy, which is ammonia…it is not in any way representative of the chemicals industry as a whole.”

Montgomery expressed his surprise that LNG exports are controversial and found it especially mind-boggling as an economist.

Additionally he stated, “The usual result of rent-seeking is: when the rent-seeker wins, they gain, but the loss to the part of the economy that would [have] gain[ed] from free trade is always larger.  And that’s simply what we’re looking at today that providing a benefit, subsidizing one narrowly chosen part of the U.S. economy at the expense of allowing the U.S. to exploit its comparative advantage, is not a contributor to economic growth.  As a matter of fact it has been the ability of the U.S. economy to shift internally, and in terms of its exports, in the direction of comparative advantage, that has been the driver of economic growth.

The entire panel discussion including the other panelists’ remarks can be viewed HERE.

For more on the net benefits of LNG exports, download CLNG’s fact sheet HERE. 

The post NERA’s Montgomery Defends LNG Export Macroeconomic Study, Criticizes Dow Chemical’s “Rent-seeking” at AEI Panel Event appeared first on CLNG.

“The more hearings Congress holds on the proposed LNG export projects and Department of Energy’s approval process, the more we hear from energy policy experts that LNG exports would be a positive development for the United States. It is now overwhelmingly clear that LNG exports will be a net positive for the country.  DOE needs to start issuing permits. Opportunity is knocking. The U.S. should open the door of opportunity to grow American exports, increase the use of clean-burning natural gas, and create jobs here at home.”

In addition to emphasizing net economic benefits, hearing witnesses and committee members discussed the geopolitical benefits of exporting LNG as well as the history and current state of the federal government’s role in regulating energy.

A distinguished panel of executives and energy experts testified on the positive impact of LNG exports. Here is what the panelists had to say:

The Honorable Bennett Johnston, Former U.S. Senator and current Chairman of Johnston and Associates: “The free market might not always lead to everyone’s definition of the sweet spot, but experience has shown that it is a better allocator and regulator than bureaucrats and politicians…. Allow the free market to allocate the nation’s newfound energy bounty.”

Amy Jaffe, Director of Energy at UC Davis Graduate School of Management: “The United States has for many decades been the leading nation in championing open markets and free trade in energy. Open trade and investment in energy is important to U.S. vital interests for many reasons. First and foremost, artificial restrictions on energy flows can be a source of international conflict and, in fact, has been a major factor contributing to armed conflict in modern history. Moreover, the United States, by virtue of both its superpower role and its position as the largest oil consuming country, has a direct interest in preventing energy supply from being used as a strategic weapon.”

The Honorable  Byron Dorgan, Former U.S. Senator and Co-Chair of the Bipartisan Policy Center: “After reviewing several recent studies on the impacts of LNG exports, the BPC Energy Board concluded that domestic gas prices are more likely to drive export levels than exports are likely to determine domestic prices… we believe the federal government should allow LNG exports […] In sum, we conclude that restricting international trade in fossil fuels is not an effective policy to reduce global greenhouse gas emissions or to advance domestic economic interests, and we recommend against any such restrictions.”

For more on the net benefits of LNG exports, download CLNG’s fact sheet HERE.

The post Latest House Hearing Confirms Benefits of Increased U.S. LNG Exports appeared first on CLNG.

“Liquefied natural gas, or LNG, will be the big driver for Chart, he said, both abroad and in North America, because the switch to LNG-powered cars, trucks and even rail locomotives and ships will grow rapidly once LNG fueling stations are built.

[...]

“Chart will also be building several of the more than 20 proposed U.S. plants to liquefy natural gas for export, where gas prices are three to six times higher than current U.S. prices.”

Read more HERE.

The post The Plain Dealer: Shale gas and LNG is good business for Chart Industries appeared first on CLNG.

-Small Business & Entrepreneurship Council

Download the study HERE.

The post SBE: The Benefits of Natural Gas Production and Exports for U.S. Small Businesses appeared first on CLNG.

“Thursday’s hearing adds to the growing understanding that LNG exports are a huge opportunity for the United States economy, our workers and our geopolitical relationships. But we must act soon. As the witnesses stated, numerous economic studies have concluded that LNG exports will create jobs, increase government revenue and benefit consumers. CLNG urges the U.S. Department of Energy to seize the opportunity to grow American exports by selling a small percentage of our clean-burning natural gas to our trading partners abroad, which will create further economic growth here at home.”

Subcommittee members and witnesses from National Economic Research Associates, Labor International Union of North America, Council on Foreign Relations and Congressional Research Service recommended that the United States capitalize on the widespread economic benefits that LNG exports would bring to the nation.

Here’s what they had to say:

W. David Montgomery, National Economic Research Associates:

“…economic theory and practical experience clearly support the conclusion that free trade in natural gas is better for the U.S. economy than any system that restricts natural gas exports.”

David Mallino Jr., Laborers International Union of North America:

“The export of LNG can help drive additional U.S. natural gas production and support hundreds of thousands of additional U.S. jobs in engineering, manufacturing, construction, and operation of the export infrastructure, as well as others indirectly along the equipment supply chain.”

Michael Levi, Council on Foreign Relations:

“Allowing LNG exports would avoid doing damage to U.S. relations with allies and to U.S. leverage in trade organizations and negotiations more broadly. Actual LNG exports would also provide some security to U.S. friends, particularly in Asia.”

Michael Ratner, Congressional Research Service:

“As a member of the World Trade Organization (WTO), the United States could be subject to cases under the General Agreement on Tariffs and Trade’s General Prohibition Against Quantitative Restraints if exports were limited. While certain exemptions from this prohibition may be granted, export restrictions may put the United States in a contradictory position vis-à-vis cases it has brought to the WTO.”

Watch the video of the full hearing HERE.

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Read the full letter HERE.

The post Fuel Fix: It’s time to export US natural gas (LTE by Bill Cooper) appeared first on CLNG.

Here is what they’re saying:

“There are numbers out there that suggest that we can go from 25 importing countries today to 45 importing countries in the next 10 or 15 years, because people see the flexibility in using LNG. There’s great new supply out there, but there are also great new potential markets.”

Jay Copan, Executive Director of LNG17, (April 2013)

“Allowing American LNG to reach world markets will enhance the energy security of our allies, providing geopolitical benefits to the U.S.”

American Security Project, “The Geopolitical Implications of U.S. Natural Gas Exports,” (March 2013)

“Recommendation: Restricting international trade in fossil fuels is not an effective policy to reduce global greenhouse gas emissions or to advance domestic economic interests, and we recommend against any such restrictions.”

Bipartisan Policy Center, “America’s Energy Resurgence: Sustaining Success, Confronting Challenges,” (Feb. 2013)

“At a more fundamental level, the USA has a responsibility as a principal advocate for and beneficiary of free trade.”

Charles Ebinger, Brookings Institute, (Feb. 2013)

“Exporting LNG, particularly to allies that face emergency or chronic shortages, but with whom we do not have free trade agreements, is in the public interest – helping ensure that the United States moves toward improved trade balance and energy security.”

Sen. Lisa Murkowski (R-AK), (Jan. 2013)

“How can America, having asked Japan to reduce Iranian oil imports, turn around and prohibit the export of surplus natural gas to this key ally?”

Daniel Yergin, Chairman, Cambridge Energy Research Associates, and Pulitzer Prize winning author, (Oct. 2012)

“Creating more opportunities to sell natural gas into global markets and access overseas customers could help the goals of increasing natural gas use and smooth out historical boom-bust cycle.”

Letter from 16 members of the U.S. House of Representatives to U.S. Department of Energy Secretary Steven Chu, (Sept. 2012)

“The U.S. should sustain North American energy market integration and support development of a global ‘liquid’ natural gas market with diversity of supply. A corollary is that the U.S. should not erect barriers to natural gas imports or exports.”

Massachusetts Institute of Technology (MIT) Energy Initiative, “The Future of Natural Gas,” (June 2011):

The post The Global Benefits of U.S. LNG Exports: What They’re Saying appeared first on CLNG.