LNG Exports: A Sacrifice for Millions
Have you seen the new Purdue University study on LNG exports?
Wallace Tyner, the University’s James and Lois Ackerman Professor and accomplished energy economist, questioned the methods and findings of the NERA study on LNG exports, so he and his team conducted a study of their own. They used more accurate models and data sets, and found that increasing natural gas exports will actually result in a decline in GDP.
Tyner’s report stressed that the most important thing to know when considering LNG exports is that they will cause an increase in U.S. natural gas prices (which the NERA study found as well), and this increase will have negative impact on the economy. In that sense, LNG exports are effectively a transfer of money out of the pockets of U.S. manufacturers and American consumers and into the pockets of natural gas asset owners. This is why this issue needs a cautious, thoughtful approach.
What’s more is that LNG exports would reduce energy costs in foreign countries while simultaneously increasing energy costs here at home. This would erode our country’s competitive advantage, threatening to stall the great manufacturing resurgence that is just beginning to bring significant benefits to the U.S. economy.
For the millions of Americans who are not directly involved in the energy production, unchecked LNG export would be a sacrifice on behalf of those who are. We simply cannot let that happen under our watch.