On Bauer Business Focus — A conversation on natural gas exports with Andrew Schneider, business reporter for KUHF 88.7 FM.
Phillips 66 recently announced plans to build a liquid natural gas export terminal at its Freeport facility outside Houston, potentially bringing thousands of jobs to the area.
John Felmy, chief economist at the American Petroleum Institute in Washington D.C., stopped by Bauer Business Focus recently to discuss the future of natural gas in Houston and how exporting would affect the local economy.
“If you have imports of between four and 16 billion cubic feet a day, it can generate 10 to hundreds of thousands of jobs,” Felmy said. “In the short run, you’ve got construction jobs in place, but then also because we feel it will have a positive impact on the supply of natural gas, you’ll have jobs created in terms of producing natural gas.”
The natural gas boom has played a major role in the revival of American manufacturing, but many trade groups and manufacturers have expressed concerns that expanding liquid natural gas exports would raise the cost of domestic natural gas.
“We’ve studied [the impact on domestic gas prices] and contracted with a firm called ICF International, and they looked at several different scenarios on it and all the scenarios show a relatively modest impact on price,” Felmy said. “That’s because if you look at the supply and demand for natural gas, it looks as though the supply curve is relatively flat.”
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