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DOE study examines impacts of US LNG exports

The US Department of Energys office of Fossil Energy (DOE/FE) recently completed
a study on the impact of exporting LNG on the US energy market. There are many
supporters, as well as opponents, on the issue of exporting natural gas (NG) from the
US. Using a 20-Bcf export volume, the study published several findings: 1) Increased
LNG exports will raise domestic NG prices by 2% to 5%. 2) US NG markets are balanced
in response to higher LNG exports through higher production rates. Most of the new
NG demand will be satisfied by shale gas production. 3) End-user costs for NG and
electricity will increase modestly with added LNG exports. Residential, commercial and
industrial sectors should expect an increase of 1% to 8% in NG costs. 4) Added LNG
exports will boost economic growth and domestic consumption of goods and services
that will outweigh higher energy costs due to LNG exports.
Photo courtesy of Bechtel