DOE Study Finds Increased LNG Exports Would Drive Production, Prices Higher

The economic impacts of increased U.S. liquefied natural gas (LNG) exports would be “marginally positive,” according to a study released Monday by the U.S. Department of Energy (DOE). The report, commissioned by DOE and authored by researchers from Oxford Economics and Rice University in Houston, modeled the macroeconomic impacts of global demand for U.S. LNG exports rising from 12 Bcf/d to 20 Bcf/d over various scenarios projected out to 2040. The researchers found that the increase in LNG exports corresponded to higher domestic natural gas prices and an increase in domestic production, with some tradeoffs related to higher energy prices for U.S. manufacturing.