Nod to Gas Exports in U.S. Study Seen Downplaying Consumer Cost

A U.S. Energy Department report that supports expanded exports of natural gas cheered drillers wanting to sell overseas while drawing warnings from opponents that it may have underestimated the potential costs to consumers.

The study, which was conducted by NERA Economic Consulting, is an almost unqualified endorsement of exports, a win for energy producers such as Sempra Energy and Dominion Resources Inc. looking to alleviate a domestic natural gas glut that earlier this year pushed prices down to a decade low. Energy stocks and gas prices rose yesterday, when the report was released.