AUSTIN – Texas Oil & Gas Association (TXOGA) President Todd Staples today issued this statement following the release of the U.S. Department of Energy’s (DOE) report on the impact of LNG exports:
“The DOE’s latest report affirms what we have long known—that U.S. LNG exports are essential to meeting the world’s growing energy needs. The Biden Administration’s pause on new LNG export approvals has only undermined global energy security at a time when it is needed most.
“The report highlights that robust economic growth in developing economies across Asia Pacific—where energy demand is expanding faster than in developed economies and coal remains a dominant fuel source—represents greatest market potential for U.S. LNG exports, even as domestic U.S. natural gas prices remained at historic lows in 2024.
“Contrary to claims by the DOE that U.S. LNG exports could raise prices for domestic consumers, independent studies—including an analysis by TXOGA’s Chief Economist Dean Foreman, Ph.D.—have shown that U.S. LNG exports have not had any sustained and significant direct impact on U.S. natural gas prices and have, in fact, spurred production and productivity gains, which contribute to downward pressure on domestic prices. These exports not only strengthen the U.S. economy but also advance environmental progress and deliver critically needed energy security to our allies abroad.
“We again call on the Administration to lift the pause on new LNG export approvals. Texas and the U.S. must remain a reliable and growing provider of the affordable, reliable energy that fuels modern life and ensures energy security for our nation and its allies.”
Since the Administration announced the LNG export permit pause in January, TXOGA has raised concerns about the action. TXOGA joined other trade associations in sending a letter to the DOE, published a statement and an op-ed, testified before the Texas House Select Committee on Protecting Texas LNG Exports and released an analysis by Dr. Foreman showing that U.S. LNG exports have not had any sustained and significant direct impact on U.S. natural gas prices. Instead, exports have spurred production and productivity gains, benefitting the U.S. economy and energy leadership.
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Founded in 1919, TXOGA is the oldest and largest oil and gas trade association in Texas representing every facet of the industry.