Morning everyone the committee will come to order, we are meeting this morning to examine the evolving Global Natural gas markets, the increasingly Important Role of u. S. Liquefied natural gas as well as the Competitive Outlook for elegy. America natural Gas Production has literally change the game, we say that a lot around here about that, but, it has been a game changer. Our production has started to the levels that many never even thought possible a decade ago. This in turn is boosting our economy as well as our National Security. It is providing a longterm low cost low emissions source of energy for our manufacturers and residential consumers alike. We have such a massive Resource Base and that we can send substantial values abroad. We are now leading the world and natural Gas Production, hopefully soon we will also lead in exports. Mobile demand for lng, we know is increasing. More u. S. Lng export facilities are coming online and more of our friends and allies around the world are building import facilities. For the First Time Since the 1950s we are now a net exporter of this abundant resource and our production is driving the formation of a Global Market for natural gas. Again, the dynamic around natural gas, around lng is extraordinary. The consensus among experts is that experts elegy will continue to be a major driver of demand growth well into the next decade and developed countries in europe, the fast growing economies like india. A few of those experts are with us on todays panel there here to tell us what is driving these trends and where they may be headed and how u. S. Lng fits into the equation. We know that we are dealing with a competitive Global Market. What i have referred to as a narrowing window of opportunity. I use the term quite frequently and it seems that i have been using it for a long period of time. It is, i believe a narrow window of opportunity to establish leadership in the global gas trade. I hope your courtier some ideas this morning on how to make our expertise more competitive. I am particularly excited coming from alaska about the roles of my state complaint. They have just released the draft for the alaska elegy project and move through reserves of gas on the slope market. A pretty important milestone for any federal permitting process and we continue to remark that alaskas gas is a remarkable resource that will add to the security of the u. S. Import bank is nearing the sunset of its current authorization in september. The spray work about you have in front of you will guide my participation in that discussion this report is for those of sitting out there with reports available on our Committee Website and i would be happy to refer you to energy. Senate. Gov so stay tune for more. I think that this conversation proceeds i think we will have an uptick in interest on these very important matters what you think are witnesses for joining us i thank you for your testimony as well as your insight on this important topic. Binky madam chairman i want to thank each and everyone the panelists were trying to help us through this. There has been a growth in domestic Gas Production in the last decade driven in large bite research and development in the department of energy. There is potential for more including opportunity in my home state of West Virginia which sits on top of an ocean of energy, the marsalis of utica and now we find the rogersville shelter. Production has increased, as has the volume of natural gas exports. In fact the United States became a natural gas exporter in 2017 for the first time in 60 years which is pretty special. That is important for our economy and for geopolitical balance around the world. Was completed, he was elegy export is expected to reach 9 billion can defeat. Will continue to use these resources and infrastructure in times of conflict. And try to divide us. It is unacceptable to me that our european allies could be held hostage because of another nation. U. S. Natural gas is abundance and much more attractive for our allies to buy from a democracy than it is from our authoritarian regime. China is purchasing Natural Resources around the world, and large parts of africa to asia. For certain commodities including Energy Technology china has become the price setter and exerts enormous influence. Most strategically to integrate manufacturing interceptor such as solar panels for economic value before selling them to u. S. And other markets. That is why i support the appalachian storage hub. Here at home, i just dont believe we should be granting the Chinese Government unfettered access to Natural Resources, when that access is not reciprocated. Ensure willingness to manipulate u. S. Energy resources to advance the longterm strategic positions. In a time when all countries need to focus on solutions for the use of natural gas. For gas emissions, gaining the Global Energy economy only benefits our adversaries. With that madam chairman, i look forward to hearing from our witnesses today. And having this important discussion. And to thank you senator. In our invitation, we will lead off the panel this morning with Stephen Lindbergh who is the assistant secretary for fossil energy at department of energy. Its good to have you here the executive Vice President in the group, president for the energy, thank you for being here. The senior fellow and director of the China Program at the center for american progress, we look forward to your input this morning. The executive director at the center for lng, and finally the senior fellow for the center for strategic and international csi us as we know around here, we think each of you for your participation here this morning. For your information we were scheduled to have a series of three votes at 11 00 this morning. The time is less than certain around here so we will see how that goes. What we would like to do is get your testimony here and have an opportunity to ask questions, i think you will see members coming and going. Do not take this as an indicator of interest or lack of interest as theres a lock going on this morning. We will continue to move the committee through those votes but we will give you more updates as those come. So again, we will begin with you mr. Wind bird and ask you try to keep your comments to five minutes with statements included. Thank you chairman, ranking mentioned, its good to be here with you and it is my pleasure to appear before you today to discuss the status of the Natural Gas Market and the work done by the office of fossil energy to support recordsetting u. S. Natural Gas Production i had the opportunity this morning to read the power so disposed and where the department stands ready to assist in whatever way we can. As the senator mentioned saying the United States is now the Worlds Largest producer of both natural gas and crude oil, each month we are setting a new record level of production, the surgeon natural Gas Production amounts to the increase of over 60 from 2009. This years production is on pace to exceed last years by nearly 10 . The exports that we are now in our third Consecutive Year as the exporter of natural gas and we estimate the United States will be a overall exporter of energy next year. These exports are reducing our trade deficit by billions of dollars each year and increasing the National Security. Cargoes have landed in europe, asia, africa, the middle east, south america, north america, and the caribbean, 36 countries in total. So far in 2019, they have exceeded 65 cargoes through april of this year asia has been the top importing region over the last three years but much of the this year has been going to europe and at the same time natural gas has become the primary fuel used in Electricity Generation responsible for fueling over 45 of the power generated in the United States in 2018. The increased use of natural gas has helped lower Energy RelatedCarbon Emissions to a level not seen since the late 1980s, u. S. Energyrelated Carbon Dioxide emissions will be 4 below 2018 levels in 2050 as the use of natural gas in the United States continues to increase. Fossil energy works on both research and development of natural Gas Technologies as well as the regulatory space. We strive to enhance u. S. Economic and Energy Security by managing and performing research that maximizes the efficient and environmentally sound production and the use of natural gas and other fossil fuels. In our regulatory program, we support the development of policy options that benefit the u. S. Public by ensuring access to adequate supplies of affordable and clean energy. The administration ideally has also made this a top priority to highlight the economic benefits of the appalachian petrochemical industry made possible by the surge in natural Gas Production in the region. Industry is estimated that the appalachian petrochemical industry would support a total of five methane crackers, 100,000 jobs, contributing to the revitalization of the region. These petrochemical plants would also bring in tax revenues to communities, provide opportunities for hard working americans, to fundamentally transform their lives and give the opportunity to diverse and patrick amo production. We remain committed to working with stakeholders at all levels of government, industry, and academia to promote these developments. There is no doubt that natural gas has transformed our nation and the world for the better. It has grown the economy and created countless american jobs and made our air cleaner. Further increased exports have given our allies the secure source of energy, natural gas has proven to be and will continue to be a vital part of the Trump Administrations commitment to the all of the above approach to energy. I thank you for the opportunity to appear before you today and look forward to your questions and finally, i want to thank my wife and our daughter for being here with me today. Its always good to have family backing you up. Thank you. Thats great, thank you. We welcome you and your family. Good morning and thank you chairman and ranking members. Im the executive Vice President for simpor energy. Weve been in the natural gas business for over 150 years. We are one of the largest Utility Holding companies in the United States with nearly 20,000 employees serving more than 40 million customers worldwide. Such as leaders in north americas growing export market representing five strategic export opportunities in north america with access to both the atlantic and the pacific basins. Our projects include two in louisiana and one in texas and two on the west coast of mexico that together could export 45 million tons of american lng in the future and this morning i would like to spend a couple of minutes on the u. S. Natural gas supply and how we see its impact in the American Economy and how exports could reduce trade deficits and benefit Foreign Relations and the environmental benefits of lng. As mentioned, the u. S. Became a net exporter of natural gas in 2017, for the First Time Since 1957. That is really thanks to American Ingenuity and to the gas revolution, the supply of inexpensive natural gas is expected to increase to 90,000,000,000 ft. 3 per day in 2020. This is a 30 increase from 2017. The growth in natural gas is good for American Consumers, our industries, for electric generation and for International Buyers of lng. The u. S. Accounts for about 22 of the global Gas Production and is on track to be the largest exporter of lng by 2024 or maybe sooner. Growing natural Gas Production and lng exports are having a strong positive impact on our country with the potential to add millions of jobs throughout the entire value stream. We seen this firsthand. The economic benefits on the export facility in louisiana. On may 14, we produced our first lng at our cameron facility with the honor of being joined by the president of the United States, diplomats from the eu and japan as well as by some of your colleagues senator cassidy was able to attend as well. On may 31 the first tanker departed cameron with american lng for the world market so we were proud of this moment. The u. S. Economic impact from cameron lng estimated to be 336 billion over the life of the project and should generate about 53,000 direct and indirect jobs annually over 20 years which is equal to 1. 1 million job years. At the port arthur project in texas which we are developing, we estimate the Economic Contribution at nearly 290 billion. Or slightly over 11 billion annually over 25 years with the average of nearly 5700 direct and indirect jobs in texas and about 41,000 nationally through 2043. So it is clear, lng exports create a lot of jobs, good paying jobs here in our country. Today, asia accounts for 70 75 of lng demand and in europe about 15 . While most, not all, but most of the u. S. Export capacity exists today or is developed in the Gulf Coast Region which takes the lng tanker about 21 days to travel to asia through the panama canal, that is impacting our competitiveness. However, separate expects to cut that to 12 days or even last by developing more in our facility in Baja California and mexico and when they are completed, they will connect with pipelines from texas to form what we are calling, the pacific highway. The american lng will be more competitive as a result. Of the 10 Asian Countries this accounts for 80 of the trade deficit which happened to be countries that need lng, exporting this not just to china which is the largest importer in the world, but the countries like japan, south korea, vietnam, india and others, this could be a true game changer for our trade deficit and since they all purchase lng, why not buy from the United States as long as we are competitive . Now, at the same time lng trade could strengthen our relationships with foreign governments by providing alternatives to russian gas and so, simpor has signed a 20 Year Agreement with an oil and gas company with preliminary agreements for Major Natural Gas Companies in europe and asia. As a result of the contracts, the u. S. Will benefit and lng exports will benefit our partners as well. More than half of the countries in asia have air quality challenges and need cleaner natural gas to displace less clean resources and combat climate change, so the trend obviously is to phase out coal fire power, natural gas is a logical substitute because it is comparatively low cost with environmental benefits and emits 50 of the Carbon Dioxide and incompetence the growth of Renewable Resources like wind and solar, as part of the overall portfolio, natural gas makes sense. In conclusion, the role of the exports in the u. S. Global energy leadership, i think this is larger than any of us could actually imagine and will continue to grow and this is focused on helping our country realize its full Energy Potential by being a leader in the Energy Export market. I appreciate the opportunity to be here and look forward to your questions. Thank you mr. Arriola. Doctor hart welcome. Thank you. Thank you for the opportunity testify today. I work as a china analyst for two decades and im here to weigh in as chinas role as a potential expert destination for lng. There is tremendous speculation for the potential of further the large export. Some analysts argue that exporting u. S. Lng will help rebalance the trade deficit and generate american jobs and help china transition away from coal. Im here today to share a different view. Arguments calling for the u. S. To export large volumes of lng to china reflects some deep misunderstandings about the way global lng markets work and deep understandings about chinas National Interest and how beijing intends to pursue the interest. I would like to focus my opening remarks on four key points. First, transporting u. S. Lng to china is prohibitively expensive, theres currently not a strong commercial Business Case to do so and in large volumes. China does not desperately need u. S. Lng, they are already exporting this from 17