A report from Public Citizen and Symons Public Affairs explains why Americans are paying more than ever before on our energy bills — even though domestic energy production is surging?
One crucial reason is that big oil and gas companies are sending more American energy overseas than ever before. In particular, the rapid growth of natural gas exports has been a leading driver of energy inflation and price volatility in the United States.
Since 2016, when the United States first started exporting liquefied natural gas, domestic gas production has increased 45 percent. Despite the surge in domestic production, American households and businesses have seen their gas bills go up, not down. The United States has been exporting more and more natural gas, and is now the leading LNG exporter in the world.
By tying America’s natural gas prices to overseas markets, LNG exports have made U.S. natural gas consumers vulnerable to global market volatility and price shocks similar to fluctuating gasoline prices at the pump. As a result, oil and gas companies have reaped record-breaking windfall profits at the expense of U.S. households and businesses.
The results were particularly damaging in 2022, when U.S. natural gas price spikes reflected global price shocks after Russia invaded Ukraine. All told, American consumers spent $142 billion more on natural gas in 2022 ($269.5 billion) than they did in 2016 ($127.6 billion), according to federal data.
Across the country, the price households paid for natural gas has increased 52% since 2016, according to the U.S. Energy Information Administration.
The price of natural gas was up 31% for industrial customers nationwide over the same time frame.