America's Energy Advantage Calls on Department of Energy to Use New Data From Charles River Associates (CRA) Consultants to Overcome Rebuttable Presumption for LNG Exports ~ New study finds that U.S. economy is better off using natural gas in manufacturing than exporting natural gas as LNG PR Newswire WASHINGTON, March 12, 2013 WASHINGTON, March 12, 2013 /PRNewswire/ -- America's Energy Advantage (AEA) today called on the Department of Energy to use a new report from consultants at Charles River Associates (CRA) to overcome the rebuttable presumption for LNG exports created by the Natural Gas Act. The report examines the economic trade-offs between LNG exports and manufacturing in the U.S. economy, and concludes that LNG exports could lead to lower employment and stifle the nascent manufacturing renaissance, hurting our balance of trade. America's Energy Advantage (AEA) is a group of businesses and organizations dedicated to helping raise the awareness of the emerging renaissance in American manufacturing made possible by our country's new abundant and affordable supplies of natural gas. Charles River Associates (NASDAQ: CRAI) is a leading management, economic and financial consulting services firm. The Department of Energy is required by the Natural Gas Act to determine if exports of LNG are in the public interest and these data from CRA are designed to help the Department make these decisions, and overcome the "rebuttable presumption" contained in the law. "The U.S. government must ensure that we can meet the present and rapidly growing future demand for natural gas in our country before we launch blindly into massive exports of LNG," said Peter Huntsman, President and CEO of Huntsman Corporation. "The data in this report quite clearly indicates that our nation has much more to gain from using this abundant resource to manufacture value-added products, than from merely exporting this resource as LNG." The report's findings are summarized as follows: oThe U.S. economy stands to benefit more if natural gas is used in manufacturing than if it is exported as LNG. oMore than $90 billion of gas-intensive U.S. manufacturing investment has been announced as a result of the abundance of inexpensive natural gas. +Relative to LNG exports at the same level of gas consumption, these investments could contribute annually: oAt least twice as much GDP oMore than eight times the amount of permanent jobs oMore than four times the amount of construction jobs +However, if unchecked exports are allowed, these investments and their contributions to the U.S. economy will be jeopardized. oU.S. manufacturing reduces the trade deficit by $52 billion annually, compared to $18 billion for exporting the same level of natural gas as LNG. oA global LNG shortage of 20-35 Bcf per day is projected by 2030. oU.S. LNG exports would likely play a major role in remedying this, causing a supply shortage and a significant increase in domestic natural gas prices. oDomestic natural gas prices could triple under a high export scenario. oWhile other reports have conservative demand forecasts for domestic natural gas consumption and LNG exports, this report shows a case for: +Resurging manufacturing demand +Significant electricity switching from coal to gas due to EPA mandates +Compelling economics of switching to natural gas vehicles (NGV) +Strong international pressure to export U.S. LNG at prices up to $12-14/MMBtu oThe NERA report, commissioned by the DOE, had severe methodological flaws. oNERA overestimated the costs of delivering U.S. exported LNG to Asian markets and the price elasticity of Asian importers. oNERA did not separately represent each of the gas-intensive components of the manufacturing sector and instead used an averaging approach which mutes their impact on the U.S. economy. "On behalf of our membership, which consists of 700 not-for-profit, publicly owned natural gas utilities across the U.S., the American Public Gas Association (APGA) wants policymakers to know that we are concerned about the increased price of gas caused by unchecked LNG exports that would elevate consumers' energy bills," said Bert Kalisch, President and CEO of the American Public Gas Association. "As the Department of Energy follows its legal obligation to determine what is in the national interest, it must study the findings of this report. Abundant supplies of low-cost natural gas give the U.S. a major competitive advantage in manufacturing that will create high-paying jobs. Using domestic natural gas to grow our manufacturing sector and our exports of manufactured goods will create far more value for our economy than exporting natural gas alone. A policy of unlimited exports could jeopardize a once-in-a-lifetime opportunity to rebuild the U.S. manufacturing sector and our middle class," said Jennifer Diggins, Director of Public Affairs for Nucor Corporation. "We believe America deserves a thoughtful, balanced natural gas policy," said Kevin Kolevar, Vice President, Government Affairs and Public Policy at The Dow Chemical Company. "One that encourages rules-based international exports, protects U.S. consumers and continues to foster robust domestic investment in the nation's manufacturing sector." About America's Energy Advantage America's Energy Advantage, Inc. is a 501(c)(6) not for profit organization that 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. The group believes that domestic natural gas should be used to further the national interest by creating the most jobs and providing the most benefit to the American economy and to the American people. This means encouraging the federal government to move cautiously on permitting natural gas exports in order to measure impact on price, security, and jobs. America's Energy Advantage believes in rules-based free trade and living up to trade commitments made to the World Trade Organization. It believes that the U.S. needs a comprehensive national energy narrative that takes into consideration the consequences of unfettered natural gas exports on American industry. The natural gas advantage has made the U.S. manufacturing sector more competitive, which has created jobs, spurred capital investment and increased exports of value-added products. Outside of industry, America's Energy Advantage strives to protect the benefits affordable natural gas has bestowed on the American consumer, including low utility bills for homeowners. SOURCE America’s Energy Advantage Contact: Press@americasenergyadvantage.org
America's Energy Advantage Calls on Department of Energy to Use New Data From Charles River Associates (CRA) Consultants to
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