ExxonMobil President Calls for Urgent Action on U.S. Liquefied Natural Gas (LNG) Exports
April 20 2015 - 12:30PM
Business Wire
- U.S. could miss out on widely
acknowledged economic and environmental benefits associated with
LNG exports
- Bureaucracy is stalling legislation and
issuance of export permits
- U.S. role as world’s leading energy
producer is at stake
The United States is at risk of losing economic opportunity and
the ability to solidify its role as a global leader in energy
production unless the government moves to approve liquefied natural
gas (LNG) exports, Rob Franklin, president of ExxonMobil Gas &
Power Marketing Company, said today.
“If policymakers don’t revisit and redress some significant
legal and regulatory problems…then the U.S. could be left behind
during one of the great, historic developments in global energy and
trade,” Franklin said in a speech at the Johns Hopkins School of
Advanced International Studies in Washington D.C.
The U.S. has long embraced open and free markets. Free trade
benefits Americans in the form of more choices, higher wages, and
better jobs. Franklin said that the export of LNG should be treated
no differently from other exports such as agricultural goods,
automobiles and computer products.
”LNG exports can provide the spur to further increase America’s
natural gas production, providing all the attendant benefits that
would generate,” he said.
ExxonMobil has embarked on a $10 billion project to convert the
LNG regasification terminal at Golden Pass, Texas, into an LNG
export terminal. In support of this effort, an application to
export to non-Free Trade Agreement countries was submitted to
federal officials more than two years ago, but no decision has been
made. Permit applications for some two dozen other projects are
also in the same state of bureaucratic limbo.
“If we are serious about having a U.S. LNG industry and
capturing the tremendous opportunities in front of us then we need
to ensure that the case of LNG exports does not become just another
casualty of bureaucracy,” Franklin said.
Global LNG demand is expected to triple between 2010 and 2040.
To put this into perspective, it means that the amount of
incremental gas needed to meet global demand by 2025 will be almost
double the size of the entire U.S. gas market today. Most of the
new demand for LNG will come from existing and emerging markets in
the Asia Pacific as well as the Middle East.
Franklin noted that the February 2015 report by the President’s
Council of Economic Advisors concludes that LNG exports would
increase U.S. GDP, create jobs, promote cleaner energy worldwide,
while maintaining the competitive cost advantage for U.S.
manufacturers. He also cited various other studies, which have
generally reached the same conclusion that allowing LNG exports
would benefit the American economy, and the greater the level of
exports, the greater the benefit.
From an environmental perspective natural gas is the cleanest
burning conventional fuel. When used for power generation it emits
up to 60 percent less greenhouse emissions than coal – which have
helped return emissions levels in the U.S. to where they were in
the 1990s, despite the fact that the U.S. economy is six times
larger now than it was then. The export of LNG will help manage
emissions and the risk of global climate change.
CAUTIONARY NOTE: Statements of future events or conditions in
this release are forward-looking statements. Actual future results,
including project plans and LNG demand growth, could differ
materially due to changes in long-term oil and gas price levels and
other market conditions affecting the oil, gas, and petrochemical
industries; political or regulatory developments; changes in
economic growth rates around the world; reservoir performance;
timely completion of development projects; the outcome of
commercial negotiations; the actions of competitors; technical or
operating factors; and other factors discussed under the heading
"Factors Affecting Future Results" in the Investors section of the
company’s website, www.exxonmobil.com, and in Item 1A of its most
recent Form 10-K filed with the Securities and Exchange
Commission.
The term “project” as used in this release does not necessarily
have the same meaning as in any government payment transparency
reports.
About ExxonMobil
ExxonMobil, the largest publicly traded international oil and
gas company, uses technology and innovation to help meet the
world’s growing energy needs. ExxonMobil holds an industry-leading
inventory of resources, is the largest refiner and marketer of
petroleum products, and its chemical company is one of the largest
in the world. For more information, visit www.exxonmobil.com or
follow us on Twitter www.twitter.com/exxonmobil.
ExxonMobilMedia Relations, 972-444-1107
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