OPINION: Rep. David Mckinley in Charleston Daily Mail: Encourage natural gas markets here and abroad

With America’s success in tapping into its vast natural gas deposits trapped in shale formations, our nation is awash with an abundance of natural gas.

Improvements in hydraulic fracturing and advances in horizontal drilling have made the United States the leading producer of natural gas in the world and are finally providing a pathway to energy independence.

Seeking a competitive source of gas and a desire to avoid unpredictable dependency on Russia and Middle Eastern countries, consumers around the world are knocking on America’s door.

But these global customers are confronting an administration in Washington that has no national energy policy, an anti-fossil fuel attitude, and regulators who are delaying virtually every application to construct gas export terminals.

Consequently, the question facing the Obama administration is whether to finally begin processing the 20-plus pending applications to permit shipping natural gas overseas.

To export natural gas, it needs first to be liquefied; hence, the term Liquefied Natural Gas or its acronym LNG. No export terminals currently exist in America.

As one can imagine, there are two sides to this debate.

Opponents of LNG exports fear that exporting LNG could inflate the cost of natural gas and increase prices for businesses and consumers.

Since gas is a critical component in their operations, some manufacturers and petrochemical facilities are also concerned that their gas supply could be diverted elsewhere.

Not having access to a dependable stream of natural gas could impact their decisions to expand operations or construct new plants.

Environmentalists argue that increasing the supply of gas to other parts of the world will only contribute to climate change and they would lose their ability to influence policies on the use of gas.

Advocates of exporting LNG focus primarily on the potential for newly created jobs and argue that benefits will far exceed the potential for higher domestic prices.

According to a recent study by the University of Illinois, there already have been 45,000 new construction jobs created in West Virginia, Ohio, and Pennsylvania associated with shale gas development. Economists predict an additional 60,000 jobs could be create nationally with LNG adding as much as $4 billion to the country’s gross domestic product.

Increased demand usually leads to increased production, which would benefit West Virginia, where a significant amount of shale gas is produced. Adding more gas to the supply through expanded production also enhances the likelihood of one or more cracker facilities for the state.

Approving LNG exports could also lift up America’s moribund ship building efforts. Reportedly the industry will need to construct as many as 90 massive new tankers to ship the gas overseas.

Each new exporting LNG terminal would also involve billions of dollars and add thousands of construction jobs to the local economy.

There is another aspect of LNG exports that hasn’t been discussed much – diplomacy. Many European countries depend on either Russia or the Middle East to provide them with gas.

Allowing America to export LNG could be a means to thwart Russia’s aggressiveness. In the face of competition from America, perhaps Putin would stop his aggressive posture and return to the bargaining table.

Middle Eastern countries are unquestionably paying attention to whether President Obama will allow LNG exports, and reduce their stranglehold on the global energy market.

How President Obama deals with LNG will have a profound effect on charting an energy policy for America’s future.

Exporting LNG could be another positive game changer for West Virginia and our nation, and would encourage even more gas production and the jobs that come with its development.

McKinley, a registered professional engineer and Republican, is West Virginia’s 1st District representative in the U.S. House.

To read the article, click HERE. 

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