Last week, the American Petroleum Institute (API) released a study demonstrating how increased exports of liquefied natural gas (LNG) could support an additional 220,000 to 452,000 jobs and up to $73 billion to the economy by 2040.
The study, conducted by ICF International, provided an update to two reports issued in 2013 on the potential impacts of US LNG exports. The report lists major changes in the last four years that can affect the economic. The study concludes that increased LNG export would have minimal impact on natural gas prices and can reduce global greenhouse gas emissions.
Looking out to 2040, the report suggests that increased LNG exports of up to 16 billion cubic feet per day (bfc/d) would support up to 452,000 additional jobs and provide up to an additional $73 billion to the US economy. Due to efficiency gains and technological advances, projected impacts of LNG export prices are lower than estimated in the 2013 report, supporting the minimal impact on natural gas prices.
Since the 2013 report, the potential global market of LNG is estimated to be 32 trillion cubic feet (Tcf) by 2040, an increase in 10 TCF from the earlier report. The study revised the US natural gas resources to 3700 Tcf, up 150 Tcf from the earlier report.
“The U.S. is the world’s leader in producing clean and abundant natural gas and today’s study demonstrates that the U.S. can export additional supplies of U.S. natural gas without sacrificing our competitive advantage here at home”, stated Marty Durbin, API Executive Vice President and Chief Strategy Officer.
The full report, read: “Impacts of LNG Exports on the US Economy: A Brief Update”.