What are the benefits or consequences involved with liquefying natural gas in order to export gas acquired from the Marcellus and Utica shales?
Environmental Benefits of LNG. Natural gas is the cleanest burning fossil fuel and the increased use of natural gas can significantly improve local air quality and public heath as well as reduce carbon dioxide (CO2) emissions.The push for exports makes sense for producers who have become the victims of their own success. U.S. Natural gas prices have plummeted in recent years due to increased production in gas plays like the Marcellus Shale. The price of natural gas in the U.S. now hovers around $3.50 per million British thermal units. But in Europe that same amount of gas fetches more than $10. So exports would help producers by reducing domestic supply and increasing prices. The report, conducted for the DOE by the economic consulting firm NERA, says exports make sense as long as there’s a glut of natural gas with low production costs in the U.S. and a high demand overseas. The study concludes that new LNG export terminals would result in just slight increases in the price of natural gas. The consequences of liquefying natural gas is air pollution. Cleaner burning than other fossil fuels, the combustion of natural gas produces negligible amounts of sulfur, mercury, and particulates. Burning natural gas does produce nitrogen oxides (NOx), which are precursors to smog, but at lower levels than gasoline and diesel used for motor vehicles.
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