LNG exports would boost NM economy

Exports of liquefied natural gas shouldn’t be held up by a slow permitting process

Thanks to the application of new drilling and completion techniques in New Mexico and around the country, American energy producers have unlocked massive supplies of natural gas from shale rocks previously inaccessible.

As a result New Mexico has become the seventh-largest natural gas-producing state in the country and saw oil and gas production jobs double between 2003 and 2013 to an estimated 21,000.

Across the country the development of energy resources from shale has created over 2.1 million jobs, helping America to become the global leader in natural gas production.

In additional to stimulating economic growth, America’s development of natural gas has also delivered important environmental benefits. When burned for electricity, natural gas is the cleanest fossil fuel available, emitting far less carbon dioxide and local air pollutants than other options.

As natural gas use has increased, the U.S. has seen a significant drop in greenhouse gas emissions. According to an Environmental Protection Agency report, domestic greenhouse gas emissions fell to their lowest level in 17 years at the height of the gas boom in 2012.

As we all know, climate change is a global issue but making progress through increased use of natural gas doesn’t have to stop at our shores. Innovative companies in the U.S. have plans to create liquefied natural gas (LNG) and export it to our allies and trading partners. Increasing our exports of LNG would not only continue to help grow our economy, it would also allow us to pass along the environmental benefits of increased natural gas usage.

A new report commissioned by the Center for Liquefied Natural Gas shows that U.S. LNG exports would help to reduce global greenhouse gas emissions. The study measures greenhouse gas output during every part of the LNG process, from wellhead to shipping to enduse for power generation, and compares them with a similar assessment of the coal life cycle. It concludes that in every scenario considered, exporting LNG to any of the international markets studied will create significantly less emissions than continued use of coal.

This report is the latest addition to a body of international research confirming the environmental advantages of natural gas. A 2014 report by the United Nations Intergovernmental Panel on Climate Change touts natural gas as an important tool in reducing global greenhouse gas emissions and says that “increased and diversified the gas supply … allowed for a more extensive switching of power and heat production from coal to gas.”

America’s opportunity to export LNG will not only help other nations reduce air pollution and greenhouse gas emissions, but also grow the New Mexican and American economies. As the President’s Council of Economic Advisers put it in a February 2015 report, “an increase in U.S. exports of natural gas, and the resulting price changes, would have a number of mostly beneficial effects on natural gas producers, employment, U.S. geopolitical security, and the environment.”

However, despite our abundant supply of natural gas and the clear benefits of exporting some of our excess supply, there remain significant policy barriers to American LNG exports. Over the last five years dozens of permit applications have been filed to export LNG to our allies and trading partners but only six have been approved.

Streamlining the LNG export permitting procedure at DOE to give investors and project developers certainty will allow the United States and our trading partners to take advantage of the environmental and economic opportunities that come with LNG exports.

Thankfully both of New Mexico’s senators understand this unique opportunity and have been at the forefront of attempts to improve the permitting process. Sen. Martin Heinrich, D-NM, is a co-sponsor of legislation to place a deadline on the DOE decision-making process, while Sen. Tom Udall, D-NM, has also advocated for streamlining the regulatory burdens on LNG export projects.

As states and countries seek new ways to grow their economies while reducing their climate impacts, New Mexicans should thank Heinrich and Udall for their leadership and call on all lawmakers to recognize the important role that American-produced natural gas can play.