The United States has decided to permit exports of its liquefied natural gas (LNG) to countries with which it has not concluded free trade agreements. As part of the move, the U.S. has approved exporting LNG to Japan, one of the countries that have not signed FTAs with the U.S.
The U.S. decision has a potentially huge impact on Japan's economy, promising lower prices and assured supply. Equally significant, a long-term arrangement of this nature can transform the Japan-U.S. relationship, more tightly coupling our two countries and ensuring continuing U.S. engagement in East Asia.
Rising prices and the development of new technologies have transformed global energy markets. With the use of techniques such as hydraulic fracturing and horizontal drilling, once unusable reserves of oil and gas are now being tapped.