WASHINGTON - A report on natural gas exports by a consulting firm released today by the Department of Energy as part of their analysis of expanded exports of the fuel confirms that prices for American and manufacturers will rise from expanded exports, and constitute a massive transfer of wealth from working Americans to natural gas production and export companies. Rep. Ed Markey (D-Mass.) the Ranking Democrat on the House Natural Resources Committee, had pressed DOE to conduct such a review and today called on the Obama administration to consider the interests of America’s working families and national and economic security interests as they analyze the report.
Rep. Markey has called for a time out on licensing of natural gas export facilities while all ramifications of large-scale exports of the fuel are analyzed.
Below is the statement of Rep. Markey, the Ranking Member of the Natural Resources Committee:
“For the last year I have said that we must have a debate about natural gas exports before we approve wholesale exports of the fuel to foreign countries. This report will now continue that vital debate.
“This report confirms that exporting our natural gas will lead to some big winners and many big losers in our economy. American consumers and manufacturers will be the losers, as exporting natural gas will increase domestic prices by up to 30 percent, and reduce domestic investment and wages by $45 billion per year by 2030. If exports are approved, the winners are mainly those in the natural gas business and those holding their stock. This report confirms that if natural gas exports move forward on a large scale there will be a massive wealth transfer from working Americans to oil and gas companies."
“I will continue to review this report and provide input to the Department of Energy as it analyzes these findings to determine America’s policy on exports. The Obama administration should not rush to export our natural gas abroad to foreign nations, and we should ensure that our natural gas is available at a reasonable price in America to keep our manufacturing competitive and consumer prices reasonable and affordable."
“I am also concerned that the negative impacts on American workers and manufacturing could be vastly underestimated in this analysis because it is based on old data that may understate industrial demand by 30 percent."
According to the EIA 2013 Annual Energy Outlook, projections for U.S. industrial demand have increased dramatically due in part to the $80 billion in new manufacturing investments that have been announced.
