With the boom in new natural gas extraction techniques, America suddenly finds itself with more supply than the domestic market requires and prices depressed to levels that are hindering the development of additional wells. However, there is a solution that adds jobs, brings money to the U.S. and offsets our trade imbalance: exporting the excess to international markets.
I have seen how energy exports have made countries in the Middle East incredibly wealthy. However the federal government of the U.S. has ruled against allowing American companies to export natural gas despite stockpiles that far exceed historical averages. (See links below)
This export ban means lost money to our country and a reduction in energy sector jobs.
Why would the government ban exports? The government and large chemical companies want to suppress demand to keep American natural gas prices low. How big would the impact on domestic prices be if we begin exporting natural gas?
According to a recent Deloitte Research paper, the cost increase would be a minor 1.7% between 2016 and 2035. However how much export revenues would America lose? $10-$50+ Billion.