New Report from the National Center for Energy Analytics Outlines Pathways to Preserve and Expand U.S. Dominance in Global LNG

WASHINGTON, Oct. 23, 2024 /PRNewswire/ -- Today, National Center for Energy Analytics (NCEA) Senior Fellow Tristan Abbey published a report examining the politicization of liquid natural gas (LNG) exports and recommending three pathways to ensure the United States maintains, even expands the economic and geopolitical benefits from its dominant position in the global LNG market. Abbey explores the history of LNG exports, the mechanisms by which the U.S. ascended to primacy, and the urgency in pursuing reform to capture a "once-in-a-generation" opportunity.

Scott Tinker, an NCEA Advisor, Director Emeritus of the Bureau of Economic Geology at the University of Texas, and founder and chair of the Switch Energy Alliance observed: "Natural gas consumption is growing in every major geopolitical region in the world. It has a fundamental role to play in our energy future to reduce emissions, provide molecules for everything from fertilizers to plastics, provide heat for everything from cement to steel, provide fuel for vehicles as methane or hydrogen, to make electricity, and much more. LNG is the only way to move natural gas across the oceans, making it globally fungible. To politically limit U.S. LNG is silly."

Terrence Keeley, another NCEA Advisor, chairman of 1PointSix LLC and the Impact Evaluation Lab, and former managing director at BlackRock, said about the report: "Abbey aptly highlights the incongruity between global market realities and the counterproductive politicization of LNG export regulation. This crucial market demands stability anchored in symbiotic, long-term relationships. The U.S. is uniquely positioned to be the reliable trade partner LNG consumers demand –– and many of these consumers are U.S. allies. Washington policymakers should heed the recommendations in this critical and timely study."

Abbey's report offers a fresh look at the maturing global LNG market, how American exporters were able to meet increased demand from Asia and especially Europe following the Russian invasion of Ukraine. Abbey also highlights the problems created by recent political actions that threaten the U.S.'s ability to meet future global demand growth. The report identifies three paths for LNG export reform: 1) Reversing the export pause; 2) revising the Department of Energy's export authorization process; and 3) establishing the Federal Energy Regulatory Commission as a more independent entity focused mainly on technical reviews of energy infrastructures.

Mark P. Mills, Executive Director of NCEA, added, "That the global market will consume far more LNG is clear to all serious observers. We have a choice of letting American companies serve that demand or throttling them, thus allowing others to do so, not least OPEC and Russia."

The report, "A Generational Opportunity: Achieving U.S. Dominance in Global LNG," is available on the NCEA's website.

About NCEA:
The National Center for Energy Analytics is a think tank devoted to data-driven analyses of policies, plans, and technologies surrounding the supply and use of energy essential for human flourishing. Through objective analyses of energy policies and their implications, NCEA aims to inform policymakers, industry leaders, and the public on critical energy issues.

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SOURCE National Center for Energy Analytics