LNG Exports: A View from the E&P Community
The laws of supply and demand, rather than artificially imposed limits, should determine how much liquefied natural gas (LNG) the United States exports, according to Chris Faulkner, CEO of Dallas-based Breitling Oil and Gas Companies.
In fact, Faulkner – whose company has been active in major shale plays throughout North America – finds the evidence for curbing exports lacking. Faulkner makes the case for his position below.
Rigzone: How would you counter the argument that LNG from the United States should only be sold to customers in countries that have free trade agreements with the United States?
Faulkner: Suggesting that we should only export LNG to countries with free trade agreements is just another way of suggesting that exports should be limited. And there’s actually no logical, rational, or analysis-based reason that LNG exports should be limited at all. We have an opportunity to help our allies while at the same time strengthening our negotiating power. We should be leveraging the prospect of preferential access to LNG exports in our trade negotiations, but we should not set regulatory limits.
Rigzone: How would you respond to those opposed to all exports of LNG from the United States, specifically those who assert that keeping all of our natural gas within our borders would help to keep electricity rates stable and affordable?
Faulkner: It’s another red herring to imply that electricity rates will go up if LNG exports are allowed. The fact is, supported by many analysts, the United States has plenty of supply for both domestic use and exports, especially since even the highest estimates for future exports represent a drop in the ocean of domestic supply.
Rigzone: How would you allay the concerns of those who fear that exporting LNG threatens U.S. energy security?
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