Energy Consultants with Charles River Associates (CRA) Release Study on the Economic Trade-Offs between LNG Exports and Manufacturing in the US Economy
BOSTON--(BUSINESS WIRE)--Mar. 11, 2013-- Charles River Associates (NASDAQ: CRAI), a worldwide leader in providing management, economic, and financial consulting services, today announced that consultants in the firm’s Energy Practice released the report “US Manufacturing and LNG Exports: Economic Contributions to the US Economy and Impacts on US Natural Gas Prices.” CRA was retained by The Dow Chemical Company to examine the economic trade-offs between LNG exports and manufacturing in the US economy.
The report focuses primarily on the anticipated growth in the gas-intensive manufacturing industry and how it may contribute to GDP, employment and the trade balance relative to LNG exports. The report finds the following:
• US manufacturing contributes more to GDP, employment, and to the reduction of the trade deficit as compared to LNG exports at a commensurate level of natural gas use.
• A global LNG supply shortage of 20-35 billion cubic feet per day by 2030 is projected, and US exports would likely play a major role in filling the gap, which in turn could lead to a tripling of natural gas prices from current levels by 2030.
• Manufacturing is highly sensitive to natural gas prices, and a significant portion of the US manufacturing sector is exposed to impacts from projected increased natural gas prices.
• Current expectations for a low cost, gas-driven electricity economy and significant deployment of natural gas vehicles could be foregone due to LNG exports.
“CRA is pleased to lend its energy economics expertise to the national evaluation of US LNG exports,” said CRA's President and Chief Executive Officer Paul Maleh. “Consultants in our Energy Practice employed our advanced, proprietary gas and electricity models, combined with additional economic tools, to produce a valuable contribution to the LNG export debate.”
CRA's project team was led by consultants in the Energy Practice, including report co-authors Ken Ditzel, Jeff Plewes and Bob Broxson.
The report is available on CRA’s website at: http://www.crai.com/uploadedFiles/Publications/CRA_LNG_Study_Feb2013.pdf
About CRA's Energy Practice
CRA's Energy Practice provides expert economic and business consulting services to a range of energy industry clients around the world. With years of industry experience and exceptional strength in analytics, the practice's consultants offer management and economic expertise in every phase of the energy cycle as well as hands-on experience helping clients manage market power, environmental policy, and regulatory issues. CRA has pioneered techniques and models that have become industry standards.
About Charles River Associates (CRA)
Charles River Associates® is a global consulting firm specializing in litigation, regulatory, financial, and management consulting. CRA advises clients on economic and financial matters pertaining to litigation and regulatory proceedings, and guides corporations through critical business strategy and performance-related issues. Since 1965, clients have engaged CRA for its unique combination of functional expertise and industry knowledge, and for its objective solutions to complex problems. Headquartered in Boston, CRA has offices throughout the world. Detailed information about Charles River Associates, a registered trade name of CRA International, Inc., is available at http://www.crai.com.
Source: Charles River Associates
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