When it comes to exporting natural gas, America needs to proceed with caution.
That’s the message being urged by Sen. Ron Wyden, who serves on the Senate Energy and Natural Resources Committee, and Rep. Ed Markey, who is the ranking member of the House Natural Resources Committee.
Writing in USA Today, the two elected officials singled out the historic opportunity posed by America’s newly discovered glut of natural gas:
After years of price spikes and uncertainty, the unprecedented growth in supply has Americans paying ultra-low prices for what is now a reliable source of fuel. American manufacturers are hiring and building new facilities. Finally, U.S. energy consumers are getting out from under the thumb of a Middle East oil cartel and the world’s volatile oil market.
But Sen. Wyden and Rep. Markey are concerned. If the U.S. begins to export its shale gas, “the same market forces that govern the cost of oil around the globe will take hold of natural gas.” And that means pushing the price Americans pay higher to a level consistent with global pricing.
In other words, the cost of natural gas for American consumers will skyrocket and the United States will sacrifice a once-in-a-lifetime competitive advantage.”
Wyden and Markey are not opposed to exports. But they see natural gas as far more than a typical product. It has strategic implications for America:
Safely tapping the America’s natural gas reserves will reduce U.S. dependence on foreign oil and bring jobs back to America. Americans shouldn’t be in a rush to give up these advantages. We have called for a “timeout” on the rush to export America’s natural gas, so that we can fully evaluate and understand the economic consequences of exporting this resource before export terminals are built, not after.
It’s time to look past the immediate payday and think this through.
Read more HERE.