Study: USLNG Exports and Prices

R. Dean Foreman—formerly API’s Chief Economist—prepared a statistically valid framework to examine the impact of USLNG exports on Henry Hub prices. Foreman conducted an exhaustive correlation analysis and the constructed a holistic, fundamentals-drive framework that accurately forecasts U.S. natural gas prices. The key finding is that, with exception of brief periods, USLNG net exports have not had any sustained and significant direct impact on natural gas prices at the Henry Hub. As Foreman states: “The simple fact behind this conclusion is that USLNG exports have spurred incremental new U.S. natural gas production and led to improvements in technology and resource recoveries, which in turn have generally added to estimated domestic recoverable gas resources.” Link to LNG Allies Report