The oil and gas industry is applauding the U.S. Department of Energy’s recent authorization of liquefied natural gas (LNG) exports from Louisiana’s Cameron Parish. The American Petroleum Institute (API) is urging the DOE to expedite the processing of more than 20 remaining applications.
“It’s a positive sign for the U.S. economy that the Department of Energy has continued to work through these export applications,” said Erik Milito, API’s director of upstream and industry operations. “The faster these terminals are approved, the faster Americans can enjoy the full benefits of the U.S. energy revolution brought about by advancements in hydraulic fracturing and horizontal drilling. LNG exports represent an immediate opportunity to create thousands of jobs, grow the economy, and reduce our trade deficit. This facility alone promises a potential investment of over $4 billion, and each export approval strengthens our competitive position in the international market. We urge Energy Secretary Moniz to ensure that 2014 is the year we lock down America’s trade advantage as the world’s leading producer of natural gas.”
Milito noted that the DOE’s analysis used the latest projections from the U.S. Energy Information Administration, which show that expectations for U.S. LNG exports have jumped by 160 percent since last year. According to the EIA’s 2014 Early Release Annual Energy Outlook, the U.S. will be a net exporter of LNG in 2016, as rising production creates new export opportunities while keeping domestic prices low.
Milito also cited a recent study of U.S. job gains and economic growth associated with future exports of LNG. According to the report, by ICF International, the economic benefits of LNG exports will extend far beyond natural gas-producing states, driving national job growth and increasing demand for U.S. steel, cement, equipment and other goods.