I'm sure everyone immediately finished this little saying I was reminded of when I read this news release.

I have read the EIA study. The only 36% I found was in wellhead prices -- not consumer prices. And it was based on export volums soaring to 6 billion cubic feet a day in 2018, just two years after starting. That is a volume well beyond the most optimistic projections.

According to the Energy Information Administration (EIA) study entitled, “Effect of Increased Natural Gas Exports on Domestic Energy Markets” released today, exporting liquefied natural gas may increase U.S. consumer prices for the fuel from as low as 36 percent to as much as 54 percent in 2018.  Natural gas exports would also increase electricity costs between 2 and 3 percent on the low end to as much as 9 percent.  There was no evaluation of how higher energy costs would impact the economic growth of the economy or impact manufacturing jobs.  “By anyone’s measure, these are substantial cost increases”, said Paul Cicio, President of the Industrial Energy Consumers of America.

IECA is grateful to the Department of Energy (DOE) for their decision to require the EIA to conduct the study.  Decisions to approve export terminals must be on an informed basis.  Not a rubber stamp approval process. 

The DOE has the responsibility to protect the interest of the public in this matter and the EIA study is a good step.  It would be irresponsible for the DOE to approve export applications without first doing an economic analysis of the impact, but in fact, that is what has occurred.  A flaw in the statutory defined process that the DOE must adhere to - does not require the DOE to conduct a study on each export application to determine its impact to natural gas and electricity prices or the economy.  We encourage the Congress to change the law and require such studies.  It is the only way to truly protect the interest of the public and make informed decisions on export applications.