71 Billion Reasons to Not Export Natural Gas


Those who have opposed natural gas exports are starting to know what it feels like to be on the losing side of a fight. But it looks as though they'll go down swinging. This week, the American Chemical Council reported that the U.S. chemical manufacturing industry is poised to make $71.7 billion in investments to take advantage of cheap, domestic natural gas that could lead to 500,000 jobs in the United States.

If those numbers seem too good to be true, then consider that proponents of natural gas exports claim that exporting cheap natural gas will result in 150,000 more jobs as well. Ultimately, though, neither of these goals will be attained. In this video, Fool.com contributor Tyler Crowe talks with Aimee Duffy to look at these numbers and explains that the truth is probably somewhere in the middle of these two outcomes. With both needing cheap natural gas to get a leg up, investors should look for a balance between the two.

With domestic natural gas production growing faster than consumption, the United States is expected to become a net exporter of natural gas by the end of the decade. Cheniere Energy will become the first LNG exporter approved to ship to high-margined countries that aren't members of a free-trade agreement. With natural gas prices expected to rest in the $4 to 0$5 range per MMbtu, Cheniere is primed for solid gains once the initial LNG trains start chugging in the first half of 2015. Don't wait until then -- this 2013 darling continues to outperform the broad markets. Be sure to read all the details in this premium research report.

The article 71 Billion Reasons to Not Export Natural Gas originally appeared on Fool.com.

Fool contributors Aimee Duffy and Tyler Crowe have no position in any stocks mentioned. You can follow them both on Twitter, @TMFDuffy and @TylerCroweFool, respectively.The Motley Fool recommends Nucor. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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