Macroeconomic Impacts of LNG Exports from the United States

Abstract

New technologies have transformed the U.S. from an importer of natural gas to a potential exporter. The commercialization of new exploration and production (E&P) technologies (hydraulic fracturing “fracking”, horizontal drilling, and 3D seismic) have created the opportunity to economically develop natural gas from shale formations on a very large scale. This new source of domestically produced natural gas has resulted in more abundant supplies and lower natural gas prices than were thought possible ten years ago when it was anticipated that the U.S. would need to import liquefied natural gas (LNG) to meet demand. Instead the U.S. is now in a position to export LNG and compete in the global LNG market.