The Dow Chemical Company (DOW), Cheniere Energy, Inc. (LNG): Exxon Mobil Corporation (XOM) Wins Either Way With Natural Gas Exports

The real winner
Despite Exxon’s preference to export natural gas, it could also directly benefit from natural gas staying on U.S. shores as well. Not only is Exxon Mobil Corporation (NYSE:XOM) a premier producer of natural gas in the United States, it is also one of the premier petrochemical manufacturers.

Exxon has a new ethylene production facility that will be coming on line in 2016. This new facility, which will use natural gas liquids as a feedstock for building an essential building block for most plastics, is expected to produce about 1.5 million tons per year of ethylene, which adds up to about 666 million cubic feet per day of natural gas equivalent. The company also has proposed an LNG export terminal for the Sabine Pass in Texas that could move 2.6 billion cubic feet per day. So while the company is publicly advocating for natural gas exports, it does have a hedging strategy in place in the form of its chemical production facility just in case natural gas exports never come to fruition.

What a Fool believes
Either way you look at the natural gas export debate, there will be a gain in jobs and a reduction in the trade deficit. The only subtle difference between the two is where those jobs and increased exports come from. If we decide to export, then natural gas prices will most likely rise and producers will see the largest benefit. If natural gas needs to stay within our borders, then the benefit moves downstream to consumers of natural gas who will export their products thanks to cheap feedstocks and cheap energy sources in the U.S. The debate on whether to export or not depends upon picking who will benefit the most.

The article ExxonMobil Wins Either Way With Natural Gas Exports originally appeared on Fool.com and is written by Tyler Crowe.

Fool contributor Tyler Crowe has no position in any stocks mentioned. You can follow him at Fool.com under the handle TMFDirtyBird, on Google +, or on Twitter, @TylerCroweFool.The Motley Fool recommends Nucor.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.