Moves to export some of the Lower 48's rising supply of natural gas have sparked debate about the wisdom of allowing that gas to leave the country, according to a new Congressional Research Service report.
"With today's natural gas prices relatively low compared to global prices and historically low for the United States, producers are looking for new markets for their natural gas," says the report titled "U.S. Natural Gas Exports: New Opportunities, Uncertain Outcomes."
"Producers contend that increased exports will not raise prices significantly as there is ample supply to meet domestic demand, and there will be the added benefits of increased revenues, trade, and jobs, and less flaring. Consumers of natural gas, who are being helped by the low prices, fear prices will rise if natural gas is exported."
The report centers on a half dozen pending proposals to export Lower 48 gas as liquefied natural gas, or LNG, noting that if they all go forward at full capacity they would export the equivalent of 12 percent of today's U.S. gas production.
"What effect exporting natural gas will have on U.S. prices is the central question in the debate of whether to export or not to export," the report says. "A significant rise in U.S. natural gas exports would likely put upwards pressure on domestic prices, but the magnitude of any rise is currently unclear. There are numerous factors that will affect prices: export volumes, economic growth, differences in local markets, and government regulations, among others."
Bill White is a researcher/writer for the Office of the Federal Coordinator for Alaska Natural Gas Transportation Projects.