Natural gas exports could add $73 billion to U.S. economyStaff Writer | October 5, 2017
Higher natural gas exports from the U.S. in the years to 2040 could add between $50 billion and $73 billion to the economy and create 220,000-452,000 new jobs, American Petroleum Institute (API) said.
Energy Impact of LNG Exports
The report is a revision of an earlier one compiled in 2013, and the revision suggests the situation in U.S. natural gas has changed for the better.
First, there is a greater resource base thanks to tech advances in production.
Today, ICF says, the Lower 48 and Canada can produce 1,798 trillion cu ft of gas at $5 per mmBtu in 2016 dollars. This compares with 1,250 trillion cu ft for the same price four years ago.
As regards the global natural gas market, the study suggests that the market for U.S. LNG exports has grown substantially since 2013 and now the country can export between 8 and 24 billion daily versus earlier projections of 4-16 billion cu ft daily.
The reason the U.S. can export more, besides ample supply, is also lower cost. In 2013, ICF projected that if exports rise, natural gas prices will increase by $0.11-0.12 per mmBtu.
Now, the market researcher says the price increase will be in the range of $0.05-0.06 per mmBtu. ■