U.S. LNG Exports: Truth and Consequence

A decade ago, market players were making large capital investments to facilitate the import to the United States of liquefied natural gas (LNG) from distant locations, such as the Middle East, Africa, and Russia. This was predicted on the consensus at the time that U.S. domestic supply was becoming increasingly scarce. However, innovations involving hydraulic fracturing and horizontal drilling subsequently let to the dramatic growth of domestic production from shale gas. In fact, domestic production growth has been so strong that the U.S. is considered a possible exporter of LNG—an unthinkable notion just a few years ago. This new consensus is fueled by the current reality—one that features abundant supplies…

• UD
  U.S. Department of Energy
• CE
  California Energy Commission