Motion to Intervene, Protest, and Comments, and associated exhibits of Sierra Club and Gulf Restoration Network under CP13-25-000 and CP13-27.

Executive Summary The United States faces a critical decision about whether to export natural gas following the rapid expansion of domestic production in recent years. The Department of Energy has already approved one export application and is currently considering eight others. If these applications are approved and the companies export at full capacity, the United States could soon be exporting more than 20 percent of current consumption. The Energy Information Administration has estimated that exporting even less natural gas than what is currently under consideration could raise domestic prices 24 to 54 percent, which would substantially increase energy bills for American consumers and could potentially have catastrophic impacts on U.S. manufacturing. In a February 24th letter to Massachusetts Congressman Edward J. Markey, Department of Energy (DOE) official Christopher Smith made clear that no additional export permits will be approved by the Department at least until an additional evaluation of the macroeconomic impact of these prospective exports is completed and reviewed by DOE this spring. 1 This decision represents an important deliberative step that ensures deeper consideration will be given to the ramifications of energy exporting. In examining energy markets and the impacts of higher natural gas prices, the House Natural Resources Democratic Staff found that: Unlike the oil market, natural gas prices are not determined on a global market. Natural gas prices in Europe and Asia are 3 to 7 times higher than in the United States. This provides the American economy with a competitive advantage in the manufacture of energy-intensive goods. From 2000 to 2008, the price of natural gas rose more than 400 percent, and was a major contributor to the U.S. manufacturing sector losing 3.7 million jobs. While larger macroeconomic forces were also at work during this period, it is clear that the cost of natural gas for industries like steel, plastics, chemicals, paper, glass, fertilizer, cement, and refining is a very significant determinant in whether facilities are sited domestically or overseas. Keeping American natural gas resources in America and keeping prices low will support a more diversified domestic economy and provide greater domestic job benefits than pursuing an export strategy. Keeping natural gas resources at home will allow greater amounts of natural gas to be used in the domestic electric power and transportation sectors. Greater natural gas utilization in these sectors could lead directly to a 1.2 million barrel per day reduction in 1 Included as an appendix to this report. 1 foreign oil imports and a 9 ...