Our Energy Moment

Stay Informed

    Reports and Studies

    Reports and Studies

    Independent studies confirm that LNG exports would benefit the U.S. economy and consumers.

    A wide range of experts – including the Department of EnergyDeloitte, and ICF International – have concluded that expanded LNG exports would result in economic, strategic and environmental benefits for America and the U.S. economy with minimal impact on prices for American consumers.

    Center for Liquefied Natural Gas, LNG and Coal Life Cycle Assessment of Greenhouse Gas Emissions

    • The Center for Liquefied Natural Gas’ “LNG and Coal Life Cycle Assessment of Greenhouse Gas Emissions” report quantifies the environmental benefits of replacing coal with U.S. exported liquefied natural gas (LNG) in five key international markets. The study measures the emissions from every part of the LNG process – from wellhead, to liquefaction plant, during export by tanker, at the LNG receiving terminal, and as end-use for power generation – and compares them with a similarly comprehensive assessment of the entire coal life-cycle. This lifecycle analysis found that in every scenario considered, exporting U.S.-produced natural gas to Germany, Japan, South Korea, China, or India creates significantly less emissions than continued use of coal.

    NERA Economic Consulting, Updated Macroeconomic Impacts of LNG Exports from the United States

    • The NERA Consulting report updates the 2012 Department of Energy study with recent market data, and confirms all major findings: LNG exports provide net economic benefits in all scenarios investigated, and the greater level of exports, the greater the benefits. The United States can be expected to produce more LNG exports at a lower price than was estimated in the 2012 DOE study. Increased LNG exports will add up to 45,000 American jobs by 2018. Expanding the markets for US LNG exports also has the potential to reduce America’s trade deficit by up to $60 billion and add up to $86 billion to the U.S. economy. (March 24, 2014)

    The Brookings Institute, Liquid Markets: Assessing the Case for U.S. Exports of Liquefied Natural Gas

    • The Brookings Institute report addresses the feasibility of exporting U.S. natural gas as LNG. It concludes that LNG exports are both technically and commercially feasible, and that LNG exports from the U.S. are likely to be competitive in global markets. Possible challenges to exports, including potential constraints on physical and labor resources and competing domestic market needs, can be surmounted by industry in its effort to build export capability. (May 2, 2013)

    ICF International, U.S. LNG Exports: Impacts on Energy Markets and the Economy

    • The ICF International study examines the U.S. economic impacts of LNG exports, and finds that exports would significantly expand employment and economic growth. The U.S. is projected to gain up to 452,300 jobs by 2035 owing to LNG exports, including up to 76,800 net jobs in the manufacturing sector. U.S. GDP is expected to grow between $15.6 billion and $73.6 billion per year by 2035 as a result of expanded markets for U.S. natural gas. (May 15, 2013)

    Department of Energy/ NERA Economic Consulting, Macroeconomic Impacts of LNG Exports from the United States

    • The NERA study was commissioned by the Department of Energy to evaluate the macroeconomic impacts of LNG exports on the United States. The NERA study concludes that there are net benefits to the U.S. economy across every scenario in which global markets would take LNG exports from the U.S., up to $47 billion in economic gains. Moreover, for every market scenarios examined, net economic benefits increase as the level of LNG exports increases. (April 23, 2013)

    American Security Project, The Geopolitical Implications of U.S. Natural Gas Exports

    • The American Security Project study finds that exporting LNG to America’s allies can improve their energy security, erode the grip of oil-indexed gas contracts in global LNG markets, and reduce the influence of nations frequently hostile to U.S. interests. The study also highlights the climate benefits that have occurred in the United States owing to the transition from coal to natural gas for power generation, and notes that helping our allies do the same would contribute to broader reductions in global greenhouse gas emissions. In addition, there are significant geopolitical benefits if exports of LNG proceed in large volumes – allowing American natural gas to reach world markets will lower the price, offer energy diversity, and undermine expensive oil-indexed contracts. This will enhance our allies’ energy security, and weaken the grip of their adversaries. (March 2013)

    Deloitte, Exporting the American Renaissance: Global impacts of LNG exports from the United States

    • Deloitte Center for Energy Solutions finds that the greatest market impact of LNG exports from the U.S. would be a reduction in the price paid for natural gas by our allies. The Deloitte study finds that the use of market-based rates for U.S. LNG exports could hasten the transition away from the use of oil as a price linkage in international gas supply contracts, providing economic benefits to America’s gas-importing allies by lowering their payments to large incumbent suppliers such as Russia. (2013)

    IHS, America’s New Energy Future: The Unconventional Oil and Gas Revolution and the U.S. Economy

    • IHS asserts that the revolution in unconventional oil and gas production is fundamentally changing the energy and economic outlook of the United States, generating significant job creation, economic growth and government revenues in both the near- and long-term. IHS estimates that nearly $5.1 trillion in capital expenditures will be invested by 2035 for upstream unconventional oil and gas activity, creating nearly 3.5 million jobs by 2035. (October 2012)

    The Hamilton Project, A Strategy for U.S. Natural Gas Exports

    • The Hamilton Project assesses the merits of LNG exports through six considerations, including macroeconomic, distributional, energy security, climate change, foreign and trade policy, and environmental impacts. The paper concludes that the expected benefits of allowing LNG exports outweigh the costs of constraining them, provided that appropriate environmental protections are in place. Based on these findings, the paper proposes that the Department of Energy approve applications to export natural gas. (June 2012)

    Massachusetts Institute of Technology, Future of Natural Gas

    • MIT addresses the role that U.S. natural gas can play in achieving carbon reduction targets. The MIT report concludes that domestic natural gas supplies are abundant and affordable owing to new extraction technologies, and that natural gas can have a positive impact at relatively low costs in addressing climate challenges. The current supply outlook for natural gas will contribute to greater competitiveness of U.S. manufacturing, while the use of more efficient technologies could offset increases in demand and provide cost-effective compliance with emerging environmental requirements. Natural gas use in the transportation sector is likely to increase, with the primary benefit being reduced oil dependence. (June 6, 2011)

    American Council for Capital Formation, Liquefied Natural Gas: Why Rapid Approval of the Backlog of Export Applications is Important for U.S. Prosperity

    • The American Council for Capital Formation (ACCF) asserts that the Obama administration has an opportunity to advance the President’s goal to double exports within five years by exporting natural gas. Supplies are plentiful, and exports would create comprehensive benefits for our economy today and into the future. The report argues that the Department of Energy should allow free markets to determine how much LNG is exported and allow free trade to aid the recovering U.S. economy. (July 2013)

    McKinsey Global Institute, Game changers: Five Opportunities for US growth and renewal

    • The McKinsey study identifies energy as one of five catalysts that can generate rapid job growth in the United States and boost economic activity by 2020. The study finds that the U.S. shale boom could add up to $690 billion a year to GDP and create up to 1.7 million jobs by 2020. The positive impacts will extend from the industry to energy-intensive manufacturing industries and beyond. McKinsey asserts that the United States has the potential to reduce net energy imports to zero—but only if it can successfully address the associated environmental risks. (August 2013)

    The Aspen Institute, Responding to Change: The New World of Oil and Gas

    • The Aspen Institute publication discusses oil and natural gas production challenges and opportunities; the potential demand for natural gas in various sectors; the environmental costs of energy; and global economic and political impacts of the North American boom. The publication concludes that the slow permitting process for LNG exports threatens to limit the economic and employment benefits of the natural gas boom for the U.S. economy while tarnishing America's free trade credentials. (September 2013)

    The Center for a New American Security, Energy Rush: Shale Production and U.S. National Security

    • The Center for a New American Security study examines the ongoing shale boom in the United States and its implications for U.S. energy and national security. According to the report, the three key factors in the promotion of energy security are increasing energy efficiency, diversifying supply and investing in energy production for the future. Moreover, the report finds that the energy boom will have a profound impact on energy markets and calls for a reassessment of U.S. strategy to seize opportunities and manage challenges associated with maintaining energy security. Estimates from IHS and McKinsey and Company suggest that the unconventional boom could boost the U.S. gross domestic product by an impressive $380 billion to $690 billion annually and create up to 1.7 million permanent jobs by 2020. (February 2014)