WASHINGTON – Legislation scheduled to be considered by the House Energy and Power Subcommittee on Tuesday would raise natural gas costs and utility bills for American consumers and businesses, and immediately approve exports of up to 46% of current U.S. natural gas production (LNG) to all members of the World Trade Organization (WTO). The legislation would also undermine efforts by U.S. trade negotiators to negotiate more competitive market access Free Trade Agreements (FTAs) with key trading partners such as the European Union and Japan.
“Exporting such a large volume of this strategic commodity will raise domestic natural gas and electricity prices for every American, undermine manufacturing competiveness and cost the nation good-paying jobs. Equally troubling is the fact that the legislation would prevent the Department of Energy from mitigating or even reviewing the impacts of unlimited LNG exports on domestic prices, consumers, electricity markets, manufacturers or the economy. The results would be a less competitive US economy, less leverage in our FTA negotiations, AND more dependency by allied countries. The fact is that the US would benefit far more from helping allies to tap their own natural resources, using American exports and technology, to satisfy their long-term energy competitiveness,” said America’s Energy Advantage.
In order to maximize the full potential of this newfound bounty and create a broadly shared prosperity, policymakers should pursue a cautious, thoughtful and deliberative approach to the question of LNG exports:
- Use American natural gas to negotiate ground-breaking, high standard Free Trade Agreements, increase exports of all American goods and services, open markets, create jobs and raise living standards for all Americans.
- The current TPP negotiations are a tangible example, where the promise of LNG access is a useful tool to win hard-fought concessions from negotiating partners, such as Japan.
- America’s natural gas advantage presents a once-in-a-generation opportunity to create market access opportunities for American companies, exporters and workers. Why give it away for free to our overseas competitors and get nothing in return?
- What is the public interest consideration to raise the cost for American consumers and workers by approving exports that can’t physically be delivered, since the export infrastructure doesn’t exist?
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.