Economic Impact
The U.S. is having a natural gas boom, right?
Many people think that the U.S. has a surplus of natural gas production, but this isn't true. This chart shows that the U.S. uses more natural gas each year than it produces.
So why is LNG being exported?
Natural gas prices are lower in the U.S. than in Asia and Europe. Fracking natural gas is expensive, and there is a better profit to sell natural gas in Asia and Europe.
Supply and demand: more gas exports = less supply and greater demand
If LNG export facilities are approved and built, natural gas corporations will take advantage of higher overseas prices and export more gas. Several industry leaders have estimated that LNG exports will raise domestic natural gas prices.
Much of Brownsville's electricity comes from natural gas fired power plants
Household electricity bills will increase, but so will the cost to produce goods and services. This will mean higher prices everywhere.
What about jobs?
Permanant jobs are estimated to be in the low hundreds for each facility. These will likely be high-trained positions and not locally hired. Construction jobs will be minimal as most LNG companies are proposing "plug and play" systems where the LNG equipment is made overseas and would be moved to Brownsville on a barge.
Our existing $300 million/year beach industry would be threatened
People come to South Padre Island because it has some of the cleanest air and beaches on the Texas Coast. Pollution from LNG would change that. Any LNG accident could have devastating consequences.
Our existing fishing and shrimping industry could be threatened
The RGV has 38% of all Texas shrimping permits and is the 7th largest commericial fishing port. LNG tankers would disrupt the flow in and out of the shipping channel. Any accident would be devastating to these industries.
