WASHINGTON - In response to reports that oil and natural gas giants BP, ConocoPhillips and ExxonMobil are planning to build an export pipeline in Alaska to allow for the export of American natural gas to China, Rep. Ed Markey (D-Mass.) today decried the plans as a threat to American manufacturers, farmers and families.
“When we bought Alaska from the Russians for only $7 million, we got a great deal. If America now turns around and allows the big oil companies to sell off America’s natural gas resources in Alaska and elsewhere to the Chinese, Uncle Sam really would deserve to be called Uncle Sucker," said Rep. Markey, the top Democrat on the Natural Resources Committee. “This is America’s natural gas, not BP’s and certainly not China’s. If we export America’s natural gas to China, we might as well export our manufacturing jobs with it."
The Department of Energy has said that if all eight applications submitted for LNG export terminals in the lower 48 states are approved, natural gas prices could rise by up to 54 percent. Exporting Alaskan gas could further increase domestic prices in the future.
Increased exports would also link America’s current stable domestic natural gas market to a pricier, more volatile international market. Right now, natural gas prices in Asia are six times higher than prices in the United States. Current low prices for American natural gas are also helping to reinvigorate key American manufacturing industries like steel, plastics, chemicals and fertilizer, which depend on natural gas to produce their products.
Rep. Markey has introduced two bills in Congress that would stem the flow of natural gas to foreign markets. One bill would require that any natural gas extracted from taxpayer-owned federal lands would have to be resold to American consumers. The other bill would prevent the Federal Energy Regulatory Commission from approving new terminals that would export domestic natural gas. More information on those bills can be found HERE.
Republicans are currently allying themselves with oil and gas companies who seek to export America’s natural gas. When House Republicans passed their legislation to open the Arctic National Wildlife Refuge to drilling, Rep. Markey offered an amendment to keep the natural gas extracted - should the area be opened to drilling - here in America. Republicans voted against that amendment, even though their own bill required that any oil extracted from the Refuge stay in the United States. Republicans also voted down similar Markey export limitation amendments to their bills to open up America’s coasts to drilling. More information on those votes can be found HERE.
Rep. Markey concluded, “If the big oil companies are seeking customers for Alaskan natural gas -- or any other domestically produced natural gas -- I would welcome them to send it to Massachusetts and keep it here in America. We have three LNG import terminals in our state, and we’d welcome more and lower priced natural gas. I’m sure other natural gas consuming states feel the same way."
In February, the U.S. Geological Survey released an assessment of shale gas resources on the Alaskan North Slope. They found that there could be nearly 80 trillion cubic feet of undiscovered, technically recoverable shale gas in three deposits on the North Slope.
