API President and CEO Jack Gerard has called new coalition efforts to restrict exports of LNG misguided and warned that restricting trade would have negative impacts on the US economy and American families.
‘Short sighted efforts by a few industrial users to restrict exports in an apparent attempt to control prices would deprive American families of the wider benefits of lower costs and increased job creation,’ said Gerard. ‘America’s newfound abundance of natural gas resources is a boon to all domestic manufacturing through lower energy costs, lower costs on raw materials and reduced heating bills. Restricting exports of energy as ‘strategic resource’ makes no more sense than unnecessarily restricting the export of chemicals, agriculture products or cars, and such a backward move could violate international trade rules.
‘Our vast resources have allowed us to become the world’s biggest producer of natural gas. Misguided economic theories and ill considered policies could have disastrous consequences, disrupting the benefits to the wider economy, the trend of bringing manufacturers back home, and imperilling the billions of revenue energy investments bring to our government.’
LNG exports would be a net benefit under every cost scenario analysed, according to a recent NERA Economic Consultancy study that was carried out for the US Department of Energy. The research found that GDP could increase from between US$ 5 billion to US$ 47 billion as a result of LNG exports, with every scenario showing improvement in GDP over scenarios where no exports were allowed.
Adapted from press release by Claira Lloyd.
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