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America's Energy Advantage Calls on Department of Energy to Use New Data From Charles River Associates (CRA) Consultants to

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
 
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