Rent seekers look to slow LNG exports
A lobbying group representing U.S. manufacturers says the Department of Energy's continued approval of new LNG export terminals could significantly deplete American natural gas supplies within a little more than three decades.The group also opposed the initial LNG facilities used to cool the gas for export. These exports have had little effect on the price of natural gas, and if anything has increased the supply. They appear to be relying on old data which significantly understated the existing supply of natural gas.
In a letter to Energy Secretary Rick Perry Wednesday, the Industrial Energy Consumers Alliance asked he stop approving new LNG export terminals that will send American natural gas to countries without which the United States has a free trade agreement - as it does with Mexico and Canada.
But estimates on domestic reserves are notoriously conservative, and executives in the natural gas industry believe that as they continue to hone hydraulic fracturing techniques and explore more shale deposits they will tap way more gas than the current federal estimate of 2,214 trillion cubic feet of gas reserves.
"In fact, if the 1966 estimate of 600 Tcf had remained static, the U.S. would have run out of natural gas 10 years ago," reads a report on the topic by the Potential Gas Committee, a research group funded by the American Petroleum Institute and other oil and gas interests.