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U.S. Natural Gas Prices Unlikely to Jump with LNG Exports

oil_gas_production

Industry Segment: Production | Word Count: 1108 Words

SUGAR LAND--August 21, 2012--Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--Ken Medlock would probably like to see more lawmakers in his class on energy economics. If so, there probably would be less hand-wringing in Washington and elsewhere over how potential exports of liquefied natural gas (LNG) from the U.S. could affect the domestic price of natural gas. Medlock, who teaches economics at Rice University, is the author of a new study that pooh-poohs the potential for LNG exports to meaningfully push up the price for gas paid domestically. The study, "U.S. LNG Exports: Truth and Consequence," pointedly noted the difference between a policy decision to authorize a particular level of LNG exports, and making an assumption that exports will automatically rise to their authorized level. The global market for LNG, which is not a lawmaker or policymaker, will make that decision.

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