America's Energy Advantage

Powering Manufacturing.
Fueling Jobs.
Igniting Growth.


America’s Energy Advantage (AEA), today issued the following statement in response to a House Energy and Commerce Committee Policy Paper arguing for expedited approval of all 20 export applications pending at the Department of Energy (DOE).
Statement of America’s Energy Advantage:

“It makes no sense to rush more U.S. LNG overseas to countries that haven’t signed free trade agreements with the U.S. at the same time millions of Americans are getting crushed by massive gas and propane bills from supply shortages and this brutal winter.  It may very well help our global competitors, but it will hurt families, job creation and our economy here at home.” 

Respected independent energy market analysts predict natural gas demand to dramatically exceed DOE projections:

• In an analysis of the DOE NERA study that the Committee used to justify most of its conclusions about economic benefits to the U.S., Charles Rivers Associates warned in March, 2013 that unchecked exports of U.S. natural gas could lead to a tripling of natural gas prices from current levels by 2030.  Their research went on to conclude that such an increase will have disastrous trickle down effects for the consumers, the manufacturing sector, employment and overall GDP.

• Last year, ConocoPhillips projected domestic natural demand will exceed DOE’s projections by 30 percent in 2017 – just four years from today. 

• A September, 2013 JP Morgan research note projects that natural gas prices will spike to $8.00 per million BTUs by 2016 — more than doubling its current price in three years. 

• In January, 2013, Purdue University found that whether LNG export levels are at 6Bcf/day or 12Bcf/day (NERA’s low and high scenarios), it will result in a decline in GDP and higher electricity prices for all Americans.  Put simply in their conclusion, foreign companies and consumers stand to gain while American companies and consumers lose.

About America's Energy Advantage
America’s Energy Advantage (AEA) is a trade association representing many of the world’s leading manufacturers and commodity producers, as well as the United States’ publicly-owned natural gas distribution companies.  Our organization is a strong supporter of rules-based free trade and believes that open markets create new opportunities for economic growth and higher standards of living for all Americans.  AEA is dedicated to educating the American public about the growth in American manufacturing that has been made possible by our country's abundant and affordable supply of natural gas.


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