Wisconsin Senator Ron Johnson yesterday voted for a measure that experts say could increase the cost of energy for consumers, even potentially tripling the price of natural gas. A report from the U.S. Energy Information Administration found that increased exports meant price increases here at home.
A separate study found that unchecked natural gas exports could additionally harm domestic employment and manufacturing.
“By voting to increase the cost of gas and jeopardize our economic recovery, Ron Johnson has shown once again that he would rather protect the special interests than the wallets of seniors and working families,” said Justin Barasky, Communications Director for the Democratic Senatorial Campaign Committee. “Even in the dead of winter, as millions rely on natural gas to heat their homes, Ron Johnson has his priorities in the wrong place – looking out for wealthy, powerful millionaires and billionaires instead of his constituents.”
BACKGROUND
Increased Natural Gas Exports Lead To Increased Natural Gas Prices Across The U.S. A 2012 report from the U.S. Energy Information Administration found that larger export levels lead to larger domestic price increases. Moreover, even while consuming less, consumers will see an increase in natural gas and electricity expenditures. [U.S. Energy Information Administration, January 2012]
Study Found That Exporting Natural Gas Could Lead To A Tripling In Natural Gas Prices. A report from Charles River Associates finds that allowing unchecked natural gas exports would negatively impact U.S. employment and manufacturing. Specifically, the report found that a global natural gas supply shortage of 20-35 billion cubic feet per day by 2030 is projected. U.S. exports would likely play a major role in filling that gap, leading to a tripling of natural gas prices. [AmericasEnergyAdvantage.org, accessed 10/13/14]
A Surge In LNG Exports Could Increase U.S. Natural Gas Prices Between 4 And 11 Percent. “The EIA concluded that a surge in LNG exports would cause U.S. natural gas supply prices to rise between 4 percent and 11 percent, on average, over its current projections for the 2015 to 2040 period, depending on how much LNG is exported.” [Center for American Progress, 1/27/15]
- Residential Consumers Could Face Up to 4.8 Percent Increase in Natural Gas Prices. “The EIA estimates that residential consumers would pay prices that are 2.1 percent to 4.8 percent higher than currently projected over the 2015 to 2040 period.” [Center for American Progress, 1/27/15]
- Commercial Consumers Could Face Up to 5.7 Percent Increase in Natural Gas Prices. “The EIA estimates that commercial consumers would pay prices that are 2.5 percent to 5.7 percent higher than currently projected over the 2015 to 2040 period.” [Center for American Progress, 1/27/15]
- Industrial Consumers Including Manufacturing Establishments Could See Natural Gas Price Increase of Up To 8.8 Percent. “Industrial consumers include those who use natural gas for heat, power, or chemical feedstock. They include “manufacturing establishments or those engaged in mining or other mineral extraction as well as consumers in agriculture, forestry, and fisheries.” The EIA estimates that industrial consumers would pay prices that are 3.6 percent to 8.8 percent higher than currently projected over the 2015 to 2040 period.” [Center for American Progress, 1/27/15]
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