Comment of Sierra Club under CP14-119, et. al.

W. David Montgomery Senior Vice President NERA Economic Consulting 1255 23rd Street NW, Suite 600 Washington, DC 20037 Tel: 202-466-9294 Fax: 202-466-3605 w.david.Montgomery@NERA.com www.nera.com Office of Fossil Energy U.S. Department of Energy 1000 Independence Avenue, SW Washington, DC 20585 December 3, 2012 Attn: Deputy Assistant Secretary Christopher Smith Dear Mr. Smith I am transmitting with this letter a clean copy of NERAs report on the macroeconomic impacts of LNG exports from the United States that was contracted for by the Department of Energy. Sincerely, W. David Montgomery Senior Vice President Enclosure document8 This page intentionally left blank Macroeconomic Impacts of LNG Exports from the United States Project Team1 W. David Montgomery, NERA Economic Consulting (Project Leader) Robert Baron, NERA Economic Consulting Paul Bernstein, NERA Economic Consulting Sugandha D. Tuladhar, NERA Economic Consulting Shirley Xiong, NERA Economic Consulting Mei Yuan, NERA Economic Consulting NERA Economic Consulting 1255 23rd Street NW Washington, DC 20037 Tel: +1 202 466 3510 Fax: +1 202 466 3605 www.nera.com 1 The opinions expressed herein do not necessarily represent the views of NERA Economic Consulting or any other NERA consultant. Contents EXECUTIVE SUMMARY ...........................................................................................................1 I. SUMMARY ........................................................................................................................3 A. What NERA Was Asked to Do ............................................................................................3 B. Key Assumptions .................................................................................................................5 C. Key Results ..........................................................................................................................6 II. INTRODUCTION............................................................................................................13 A. Statement of the Problem ...................................................................................................13 B. Scope of NERA and EIA Study .........................................................................................14 C. Organization of the Report.................................................................................................15 III. DESCRIPTION OF WORLDWIDE NATURAL GAS MARKETS and NERAs ANALYTICAL MODELS ..............................................................................................16 A. Natural Gas Market Description ........................................................................................16 B. NERAs Global Natural Gas Model ..................................................................................20 C. NewERA Macroeconomic Model .......................................................................................20 IV. DESCRIPTION OF SCENARIOS ..