This low-cost energy to new factories
With America’s new wealth of natural gas comes the welcome potential for lower prices for consumers, more manufacturing jobs, increased global competitiveness and energy security — but it also presents new challenges, particularly when it comes to infrastructure. Our infrastructure has simply failed to keep pace with America’s stunning turnaround in production. We can’t sustain growth or take full advantage of this energy abundance without a proper distribution network. For example, we can’t attract investment for new manufacturing if there isn’t a way to ensure we can transport this low-cost energy to new factories.
Consumers in the Northeast and Midwest are perhaps most keenly aware of natural gas infrastructure problems as they continue to be hit with painfully high heating bills every winter. Far too often, natural gas pipelines fill to capacity, leading to record high natural gas prices and spikes in the price of electricity. Last year, natural gas spot prices in New York City rose to nearly 30 times higher than the national average.
Currently, there just isn’t a workable network in place to transport the gas from the place of production to homes and businesses that are desperate for affordable energy. This difficult situation could get much worse, especially with the Environmental Protection Agency’s new power plant regulations coming down the pike.
Instead of working to improve the situation, the federal government is actually standing in the way of new energy infrastructure. Our antiquated permitting process is contributing to delays and bottlenecks. Getting a simple permit for a new natural gas pipeline can take several years.
The story is much the same for liquefied natural gas export terminals, which are now in high-demand thanks to our excess in supply. With our abundance of natural gas, we have the chance to help our allies across the globe by providing an alternative source of safe and secure energy. The prospect of America’s expanding LNG market is especially good news for our friends in Eastern Europe who are currently forced to rely on nations such as Russia to meet their energy needs. LNG exports also contribute to job creation and economic growth here at home.