A long-awaited report on natural gas exports was finally released by the Department of Energy (DOE) last week. Unsurprisingly, it concluded that exporting natural gas would bring a net economic benefit to the U.S. economy, with most benefits being realized as economies of scale in gas production increase.
With the benefits of free trade—both imports and exports—so obvious, the necessity of this report is questionable. More than a dozen liquefied natural gas (LNG) export projects across the nation have been delayed because of it. In order to export LNG to non-free-trade-agreement countries, companies must get approval from the DOE, approvals that the Obama Administration refused to issue until the release of this report.
The International Energy Agency recently predicted that by the mid-2020s the U.S. would surpass Saudi Arabia as the world’s largest energy producer. If the U.S. doesn’t start legalizing the exports of its energy resources—both oil and natural gas—it will have squandered an opportunity to capitalize on billions of energy consumers across the world. As emerging market automobile use explodes and Japan switches from nuclear to natural gas power, the U.S. should put itself in a position to take advantage of these opportunities.
This foot-dragging on sensible trade policies simply confirms the true lack of leadership on trade issues in the United States. According to The Heritage Foundation’s forthcoming 2013 Index of Economic Freedom, trade freedom in the U.S. has stagnated since 2011 because of slow implementation of trade pacts with Panama, Colombia, and South Korea, as well as the obvious stonewalling on natural gas exports. It’s time for a change: Trade should again be at the top of the policy agenda.
Now that the DOE has had its say on natural gas exports, it’s time for the Administration to start approving the export projects that U.S. companies have been waiting on for months. If exports are critical to “winning the future,” as the Administration claims, then expediting these approvals just seems like plain common sense.
US should take advantage of competitive advantage in low natural has prices. That is, bring down transportation and energy prices here. Which cause our manufacturing and good exporters to compete globally. Bring down food costs. Not allow natural gas prices to rise to global prices.
We can not export crude oil unless it is converted to something else. Why would we do something different with Natural Gas. If we export natural gas, the price will become the world commodity price vs. the domestic price. I am normally against government intervention of the market but energy resources should be used for domestic use before we start sending overseas. No shortage of natural gas in qatar, trinidad etc. Turn the natrual gas into a product and keep the manufacturing in this country. One of the few advantages we have in the world market and we don't need to give it away.
I wonder what excuse Obama will use to continue stonewalling approval of these export permits?
We should encourage 'upgrading' the natural gas to fertilizer, plastics, and other products. In my own area (Grays Harbor County, WA), we have a natural gas potential the exploration company is trying to decide whether to go into production with the value of natural gas so low.
Pete
Why not apply the same principal to exports of corn and soybeans?
So only export chickens? Or only fried chickens? Or only take away fried chicken dinners?
The US is the principal producer of all the "oil service" commodities and products in the world.
Pete would subsidize the production of fertilizer and effectively the production of oil rigs.