The Industrial Energy Consumers of America’s (IECA) President, Paul N. Cicio, today issued the following statement following the release of the association’s letter to Secretaries Rick Perry, Department of Energy and Wilbur Ross, Department of Commerce which recommends five public interest policy recommendations.
“According to the DOE, total LNG export approvals to free trade agreement (FTA) and non-free trade agreement (NFTA) countries now equals a stunning 71.2 percent of U.S. 2016 natural gas demand. This breathtaking amount of natural gas is committed under agreements for 20 to 30 years to foreign countries, and has exceedingly large negative potential implications for the U.S. economy, especially given the relatively small economic gains due to potential LNG exports. Using natural gas in manufacturing creates eight times more jobs than exporting the gas.
“The EIA AEO 2017 is forecasting NYMEX natural gas prices will rise 87 percent by 2020, due in large part to LNG exports. If future prices rise to global levels, the U.S. will have lost its competitive advantage and the incentive to invest in the U.S. would be gone, and onshoring by natural gas consuming manufacturing industries would also stop.
“DOE approved LNG export volumes of 20.6 Bcf/d to NFTA countries alone, which equals 170 percent of today’s total residential demand. The EIA AEO 2017 demand forecast to 2050, only 33 years away, which includes only 12 Bcf/d of LNG exports, indicates that 56 percent of all U.S. natural gas resources in the lower 48 states will be consumed. The 100-year supply is a myth.
“It is prudent to put common-sense safeguards in place now so that consumers will not be damaged.”