DOE report encourages LNG export - KFDA - NewsChannel 10 / Amarillo News, Weather, Sports

DOE report encourages LNG export

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Amarillo, TX -- Increased natural gas production both in our area and across the nation could be a significant boost to the U.S. economy despite higher fuel costs.

The Department of Energy recently released a report that says if we exported more natural gas, the revenue would far outweigh the rise in fuel costs - and some of that revenue could make its way to west Texas.

The report says if and when world demand rises, U.S. production could rise along with it to meet that demand.  And although the law of supply and demand says more exports would mean higher domestic prices, the increased revenue would far outweigh those increases.

The U.S. is the world's largest producer of natural gas, and Texas is the largest producer in the nation.

Texas produces about 23 percent of the nation's natural gas, but the lion's share of that is sold off.  So until we find more ways to use natural gas, it can still serve a purpose as a relatively lucrative commodity that creates both jobs and revenue.

Vice Executive Director of the Panhandle Royalty Owners Association Wayne Hughes explains, "When that market price comes up, it increases the drilling activity, that increases the number of people employed on drilling rigs, and that money that they take home in the form of wages flows through the economy about four times before it's absorbed."

The arguments against selling our gas are higher prices here at home and national security issues by selling to more foreign countries, but Representative Mac Thornberry disputes that argument, saying, "I don't think anybody that we would sell to would pose a future national security issue; among other things, it is making them vulnerable to us if we were to cut it off."

Keep in mind this report is only a report - but research like this is used in legislative decisions.

If you'd like to see that report for yourself, follow the link attached to this story.