The Department of Energy’s continued pause on permitting U.S. LNG export facilities jeopardizes 900,000 American jobs, according to a new report released today by the National Association of Manufacturers (NAM).
Prepared by PricewaterhouseCoopers, the report highlights the economic benefits of U.S. LNG exports, finding:
“US LNG exports supported an estimated total of 222,450 jobs in 2023. These jobs earned $23.2 billion in labor income, added $43.8 billion to GDP, and contributed more than $11.0 billion of tax and royalty revenues to the federal, state, and local governments in 2023.”
As NAM President and CEO Jay Timmons told FOX Business:
“With an all-of-the-above energy strategy, we don’t have to choose between national security, economic growth, and environmental protection—they go hand in hand. Today’s research highlights the massive potential we unlock when we embrace American energy production.”
.@MorganLBrennan: “You’re talking about LNG exports as a matter of national security.”@SullyCNBC : “100%”
New @ShopFloorNAM data is clear: the LNG pause puts nearly a million jobs at risk while leaving our allies—particularly in Europe—out in the cold. https://t.co/OxzGiZa3NN pic.twitter.com/bIPIosDFgh
— Jay Timmons (@JayTimmonsNAM) October 16, 2024
The Biden Administration’s Policies Threaten U.S. Jobs, Economy, and Communities
The economic contributions of the LNG industry are undeniable, yet the Biden administration’s stance on restricting LNG exports approvals to non-free trade agreement countries is threatening to undo these gains. NAM’s analysis shows just how much is at stake if these policies persist.
Under the Department of Energy’s continued export pause, 900,000 jobs could vanish, wiping out $103.9 billion in labor income. That’s not just a blow to workers – it threatens the livelihood of American families and entire communities across the country.
Not only are American jobs at risk, but the greater U.S. economy is threatened by the . NAM estimates that an LNG export pause would stifle over $215 billion in contributions to U.S. GDP. This is a threat to economic stability in America, and undermines historic progress achieved in the industry by American manufacturers.
At the local level, communities that rely on tax and royalty revenues from LNG exports are also in jeopardy. As the study details:
“Including the direct, indirect, and induced effects, the US LNG export sector’s total fiscal support to the federal government, state, and local governments in 2044 is projected to be $46.0 billion.”
Consequences Beyond Our Borders
The impact of limiting LNG exports isn’t just domestic. Curtailing LNG exports doesn’t just harm American workers and communities – it forces U.S. allies to turn to riskier, less reliable energy sources. According to EIA, in 2023, the United States cemented its position as the world’s largest LNG exporter, with exports averaging 11.9 billion cubic feet per day—a 12% increase compared with 2022. The United States has become a critical supplier of cleaner-burning natural gas to nations seeking to reduce their reliance on dirtier alternatives from countries like Russia.
Jay Timmons made the stakes clear:
“Our new research makes clear that clamping down on LNG exports jeopardizes jobs and economic growth. It also forces other nations to rely on dirtier alternatives from adversarial nations like Russia, which exacerbates national security risks. By expanding LNG export facilities, increasing natural gas production, and supporting clean energy initiatives, we can power manufacturing, improve the quality of life, boost our security and reduce emissions across the globe.”
Unleashing America’s Energy Potential
The message from NAM’s study is crystal clear: LNG exports hold vast potential for the U.S. economy, energy security and the environment. But realizing this potential requires the right policies – ones that support domestic energy production and ensure that U.S. LNG can compete on the global stage.
Policymakers have an opportunity to embrace these benefits, making it possible for the LNG industry to drive U.S. energy goals forward, including the transition to cleaner energy sources. The Biden Administration must reconsider its current approach and lift the restrictions holding back American energy.
As Timmons emphasizes:
“This study provides policymakers—present and future—a clear path to create jobs and hundreds of billions of dollars in economic growth by harnessing America’s abundant supply of LNG.”
Bottom Line: The future of U.S. LNG export industry promises expanded benefits, including hundreds of thousands of jobs and billions in economic growth. But to fully tap into this potential, the Biden Administration must end its pause on LNG export approvals and allow American energy to thrive.
The post Report: American Jobs and Economic Growth At Risk With LNG Pause appeared first on .
This post appeared first on Energy In Depth.
