Reactions Vary to DOE Study on Macroeconomic Effects of LNG Exports

The reactions to the U.S. Department of Energy’s release yesterday of the NERA study on the macroeconomic effects of LNG exports on the U.S. economy have been varied. Reuters provides a general overview of the study and reactions.

Senator Ron Wyden (D-OR), the incoming chair of the Senate Energy and Natural Resources Committee, released a statement that the study appears to confirm that exports of LNG will raise the domestic price of natural gas and that he will continue to call on the U.S. Department of Energy to ensure that unfettered natural gas exports do not harm U.S. consumers and manufacturers.

Senator Lisa Murkowski (R-AK), ranking Republican on the Senate Energy and Natural Resources Committee, issued a press release applauding the study’s findings that exporting LNG would be beneficial to the U.S. economy, adding that it may be time to revisit the federal approval process for exporting LNG to countries that do not have a Free Trade Agreement with the United States, where such exports can be limited or blocked if not found in the public interest.

Senator Jim Inhofe (R-OK) also issued a press release supporting the study’s conclusions.

Sierra Club issued a press release noting that the study omits consideration of increased hydraulic fracturing and increased domestic gas prices which could result from increased gas exports.