Washington, D.C. – March 24, 2014 – America’s Energy Advantage today issued the following statement in response to the Department of Energy’s (DOE) conditional approval of the Jordan Cove LNG Application.
Statement of America’s Energy Advantage
“As Americans are paying the highest natural gas prices in four years, the Administration continues to send American natural gas to countries that have not signed a free trade agreement with the U.S. This marks the seventh consecutive approval that will allow the export of more than 13 percent of domestically produced natural gas. America’s Energy Advantage strongly disagrees with this policy, but it is unarguable that the U.S. is now fully committed to exporting large volumes of this strategic commodity to our overseas competitors.
This is a grievous error that puts billions of dollars of investment and millions of jobs at risk. Stable and affordable natural gas is powering an American manufacturing comeback. According to IHS Chemical, more than $125 billion of new manufacturing investments are planned. This latest export approval will raise domestic natural gas, electricity, home-heating and propane prices for every American, undermine our manufacturing competiveness and cost the nation good-paying jobs. America’s Energy Advantage renews its call for the Administration to take an immediate ‘time out’ from further LNG export approvals until a new, comprehensive review of current market conditions is completed.”
- LNG exports will not help Ukraine but will harm U.S. consumers and economy.
- A shortage of propane – a byproduct of natural gas production – has sparked a national and regional emergency, with crippling prices for consumers, business and agriculture. 30 states declared propane emergencies. Propane exports have quadrupled in the last five years to a record 20 percent of U.S. production, outstripping the growth in supply causing massive price spikes and shortages.
- Propane costs have risen from $2.30/gallon in February, 2013 to $3.89/gallon in February, 2014, an increase of nearly 70%, according to EIA reports.
- In an analysis of the DOE NERA study that was used to justify all of the export applications to date, Charles Rivers Associates warned in March, 2013 that unchecked exports of U.S. natural gas could lead to a tripling of natural gas prices from current levels by 2030. Their research went on to conclude that such an increase will have disastrous trickle down effects for the consumers, the manufacturing sector, employment and overall GDP.
- Last year, ConocoPhillips projected domestic natural demand will exceed DOE’s projections by 30 percent in 2017 – just three years from today.
- A September, 2013 JP Morgan research note projects that natural gas prices will spike to $8.00 per million BTUs by 2016 — more than doubling its current price in three years.
- In January, 2013, Purdue University found that whether LNG export levels are at 6Bcf/day or 12Bcf/day (NERA’s low and high scenarios), it will result in a decline in GDP and higher electricity prices for all Americans. Put simply in their conclusion, foreign companies and consumers stand to gain while American companies and consumers lose.
About America’s Energy Advantage
America’s Energy Advantage (AEA) is a trade association representing many of the world’s leading manufacturers and commodity producers, as well as the United States’ publicly-owned natural gas distribution companies. Our organization is a strong supporter of rules-based free trade and believes that open markets create new opportunities for economic growth and higher standards of living for all Americans. AEA is dedicated to educating the American public about the growth in American manufacturing that has been made possible by our country’s abundant and affordable supply of natural gas.