The U.S. LNG Boom Could Make Energy More Expensive for Americans

Core Insights - The U.S. natural gas price has been on an upward trend since April 2024, driven by record LNG exports and planned increases in export capacity, which the EIA forecasts will double by 2029, limiting domestic supply for consumers [1] - Rising natural gas consumption is primarily due to the expansion of natural gas-fired power plants, which have nearly tripled electricity generation from natural gas since 2001, making it the leading fuel source for electricity in the U.S. at 43% [4] - The shale revolution has led to significant growth in the chemical industry, utilizing natural gas for producing agricultural chemicals and plastics [5] Industry Trends - The current administration's "energy dominance" policies aim to maximize production and exports while reducing energy costs, but the latter is facing challenges as rising consumption leads to increased costs for consumers [3] - The natural gas industry projects continued growth in domestic production, but independent analyses suggest a plateau and eventual decline in production, creating a supply squeeze as LNG exports rise [7] - The chemical industry, particularly in agricultural chemicals and plastics, has expanded significantly due to the availability of cheap natural gas, which has been a key driver of growth in this sector [5]