Americans Shell Out Or Shiver While Biden Ships Our Energy Off To Europe

A trend is emerging in the Biden administration’s foreign policy, a perpetual obsession with supporting Europe above and even at the expense of U.S. needs at home.

In response to attacks on the Nord Stream natural gas pipeline system, Secretary of State Antony Blinken called the situation in Europe a “tremendous opportunity to once and for all remove the dependence on Russian energy.” Blinken went on to tout the ability of U.S. liquefied natural gas (LNG) producers to meet heightened European demand, conveniently forgetting it was the Biden administration’s executive actions that stifled production capacity within its first 100 days in office. Careful, Mr. Secretary, with too much premature boasting.

Blinken’s naïve comments, practically salivating at the idea of saving Europe, indicate just how much the Biden administration does not want the war in Ukraine to end. The conflict has become the administration’s sacred cow, allowing it to cover up domestic political blunders and receive heaps of praise from European elites, perhaps the toughest crowd globally for the U.S. post-Trump. What goes unsaid is that all this European love comes at the expense of the interests and bank account balances of American households.

U.S. LNG exporters are, for the moment, enjoying a hefty payday. Data from the first half of 2022 show the U.S. became the world’s leading exporter of natural gas, with a 12 percent increase from the second half of 2021, according to the Energy Information Administration. Compounded by disruption in Russia’s ability to export to Europe, the U.S. sent 70 percent of its exports last month alone to Europe. Compared with the same timeframe last year, exports to Europe hovered at only about 20 percent of overall U.S. exports. As New England competes with Europe for LNG supply, the region’s power grid operator has warned of possible blackouts this winter. Meanwhile, energy companies have been profiting approximately $200 million per shipment to Europe thanks to record prices there. With a continued influx of U.S. supply, Europe’s prices are likely to start to come down.

But let’s not forget that American producers haven’t had the best relationship with the Biden administration. Almost immediately upon entering office, President Joe Biden canceled the Keystone XL pipeline and mandated numerous new environmental rules and regulations with executive orders. American producers may be getting a fat payday thanks to Europe, but sustainable long-term production at home remains in jeopardy.  

Price Increases at Home

But what about prices for American households this winter? U.S. energy prices have reached 14-year highs, sparking calls domestically for a freeze on exports abroad heading into winter to ensure a strong U.S. supply that will directly benefit U.S. consumers. The Biden administration said no thanks. Reuters reports the White House has “ruled out any ban or curbs on exports this winter” with a senior administration official quoted as saying “because of the steps we and our partners have been taking, gas storage in Europe is at a significantly higher level than last year. More work remains”