In a paper released this week, Severin Borenstein finds that the United States has enough gas reserves to supply both domestic and international markets, but that the nation could also end up paying more for its energy in the long run.
"There are a lot of factors to consider when it comes to natural gas exports," Borenstein said. "But, at this point, it's not clear that the benefits outweigh the costs."
Borenstein's analysis comes at a time when the federal government is considering whether to approve new natural gas export terminals. The Energy Department has already approved six such terminals, and more than two dozen others are pending.
Supporters of natural gas exports argue that they will create jobs and boost the economy. They also say that exports will help reduce America's reliance on foreign oil.
Opponents of exports say that they will raise natural gas prices for domestic consumers. They also argue that exports will contribute to climate change by increasing greenhouse gas emissions.
Borenstein's analysis suggests that both sides are right. He finds that exports will create jobs and boost the economy, but that they could also raise natural gas prices for domestic consumers.
Borenstein's research found that building and operating export terminals will cost billions of dollars. That cost will be passed on to consumers in the form of higher utility rates.
Borenstein also found that exports could lead to an increase in natural gas prices in the long run. This is because exporting gas will reduce the supply of gas available to domestic markets, which could drive up prices.
Borenstein's analysis is a valuable contribution to the discussion about natural gas exports. It provides evidence that both the potential benefits and costs of exports should be carefully considered before any decisions are made.
