Antiquated law used to slow exports of natural gas

William O'Keefe:

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In 1938, Congress passed the Natural Gas Act of 1938 to control the interstate price and transmission of natural gas. Under the act, companies had to demonstrate “public convenience and necessity” to the Federal Power Commission before they could make an interstate sale. And, now, 76 years later, this law is being used to stifle free trade and to continue the heavy hand of government in controlling market forces.

For over six years it has been abundantly clear that the United States was blessed with an abundance of natural gas and that private sector technology had the means to produce it economically in large quantities. US reserves are estimated to be large enough to meet our needs for at least a century. As the global implications of the shale gas renaissance became ever more clear, companies began planning for the construction of LNG export facilities to begin exporting natural gas to other countries.

Unfortunately, before construction can begin, they must obtain DOE permission and DOE has been slow-walking the approval process in keeping with the Obama Administration’s hostility toward fossil energy.

Not only is the Natural Gas Act an anachronism but so is the prevailing mindset in Washington. Over two centuries ago, Adam Smith demonstrated the benefits of free trade in advancing the Wealth of Nations and the economic penalties of protectionism. Unfortunately, there are some “business leaders” who are attempting to subordinate the nation’s economic best interests for shortsighted opportunism.

The case for natural gas exports is compelling. In late 2012, DOE released a report by a leading economic consulting firm—NERA—that concluded that the more natural gas that the US exports, the greater the economic benefits that we will realize. Allowing unfettered exports will stimulate greater domestic investment in production, distribution, storage, facility construction and operation, and improve our balance of trade as money from foreign purchases flowed into the country. As just one example, a planned facility in southwest Louisiana—Cheniere Sabine Terminal– represents an $11 billion investment that would employ 3000 workers during construction and create about 150 permanent jobs in a community of 6800. Other projects would have similar benefits.
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The anti energy left is using the bureaucracy  to try to keep US energy in the ground in the vain hope that less energy will be used.  All they are really doing is exporting US jobs and empowering thugs like Putin and Chavez.  The same amount of energy will be used either way, but it is strategic insanity not to produce and export our own energy.