House vote hints at less opposition to LNG exports

By Jennifer Dlouhy, San Antonio Express
November 21, 2013

WASHINGTON — The controversy surrounding exports of U.S. natural gas hasn't disappeared, but recent congressional votes suggest the tide may be turning on the issue, as the Energy Department authorizes more companies to sell the fuel overseas.

Late Wednesday, the House of Representatives voted 142-276 to reject a plan from Rep. Peter DeFazio, D-Ore., that would block exports of natural gas produced on public lands. The vote, compared with three last year, revealed a slight uptick in the number of lawmakers who support energy exports — or at least don't want to ban them outright.

DeFazio said the foreign sales threaten a resurgence in domestic manufacturing, as companies move operations back to the United States to take advantage of cheap power supplies and feedstocks from surging U.S. natural gas production.

Many analysts believe that exports of liquefied natural gas could cause the domestic price to rise by expanding the marketplace for U.S. natural gas, but opinions vary widely on just how much.

“We have manufacturing companies bringing production back to the U.S. because of our plentiful natural gas and saying it is to our advantage, our energy is cheaper here, our feed stocks are cheaper here,” DeFazio said on the House floor.

Exports to the international market, he said, would cause a surge in natural gas prices. “We will lose our competitive advantage for domestic manufacturing,” DeFazio said.

But Rep. Michael Turner, R-Ohio, said the idea of hoarding U.S. natural gas is “ill-conceived.”