Liquified Natural Gas Pause Is Hurting The U.S. Economy

According to the National Association of Manufacturers (NAM), the Biden administration’s decision earlier this year to pause liquified natural gas (LNG) export permits has stifled an important growth driver within the U.S. economy. In fact, a recently-released NAM and PricewaterhouseCoopers report  found the LNG industry is a huge source of jobs and profit. Specifically:

• U.S. LNG exports support 222,450 jobs, resulting in $23.2 billion in labor income;
• The LNG industry contributes $43.8 billion to U.S. economy; and
• Federal, state, and local governments receive $11 billion in tax and royalty revenues due to U.S. LNG exports.

While impressive, those numbers pale in comparison to the industry’s potential over the next two decades. The study also found:

• The industry could sustain between 515,960 and 901,250 jobs, resulting in $59 billion to $103.9 billion in labor income between now and 2044;
• The ban would stifle between $122.5 billion and $215.7 billion in contributions to U.S. economy over the next 20 years; and
• Through 2044, a continued ban could put at risk between $26.9 billion and $47.7 billion in tax and royalty revenues that could benefit communities across the country.

Clearly, the ban on LNG exports needs to be overturned, and Americans seem to support that idea. For example, a NAM survey taken in March 2024 found 87 percent of respondents believe the United States should continue to export natural gas and 76 percent agree it is time to build more energy infrastructure, including export terminals.