The More We Export, the More U.S. Benefits Economically
Western producers can increase production to meet export demands
(DENVER) – Western Energy Alliance applauded the Department of Energy's study, released yesterday, on the macroeconomic impacts of Liquid Natural Gas (LNG) exports. In all scenarios, NERA Economic Consultants, which conducted the study for DOE, finds that the United States benefits economically, with more exports resulting in higher GDP.
"Western producers are able to increase production as natural gas is exported abroad," said Kathleen Sgamma, Vice President of Government & Public Affairs. "We have the capability in the West to meet the growth in demand that would result, as indicated by the current oversupply of natural gas. Western producers are able to ramp up production to meet export demands, while maintaining an abundant supply of affordable energy for the domestic market as well.
"In fact, the DOE report shows only modest increases in natural gas prices with exports, even though the economists may not have fully appreciated how available spare capacity today, constant improvements in technology, and new discoveries into the future will likely maintain the downward pressure on price. We have the potential, just in the West, to meet new demand while continuing to supply affordable, clean and reliable energy for domestic consumers."
The full report is available on the DOE website.
About Western Energy Alliance
Western Energy Alliance, founded in 1974 as the Independent Petroleum Association of Mountain States, is a non-profit trade association representing more than 400 companies engaged in all aspects of environmentally responsible exploration and production of oil and natural gas in the West. More information on Western Energy Alliance and its members is available at www.westernenergyalliance.org.