Biden halts natural gas projects, risking 70k job loss
White House Temporarily Pauses LNG Exports, Raising Concerns
In a move that could have far-reaching consequences, the White House announced on Friday a temporary pause on pending decisions regarding the export of Liquefied Natural Gas (LNG) to non-FTA countries. The Department of Energy will update the underlying analyses for authorizations before any further action is taken.
This decision has sparked criticism, with opponents arguing that it will hinder Europe’s ability to power its economy independently of Russian gas. Major projects worth billions of dollars are now at risk of disruption.
Bloomberg reports that more than a dozen proposals, including ventures in Louisiana by Commonwealth LNG and Energy Transfer LP, are currently awaiting review at the Energy Department and could be affected by the pause.
The White House took the opportunity in its announcement to criticize Republicans, accusing them of denying climate change and attempting to strip Americans of the benefits of President Biden’s climate investments. They emphasized their commitment to ambitious climate action while ensuring a strong American economy.
Opponents of the pause argue that the ongoing conflicts in the Middle East could threaten the flow of natural gas through the Strait of Hormuz, which accounts for a quarter of global supplies. They warn that halting LNG export projects could have negative consequences.
Marty Durbin, president of the US Chamber of Commerce’s Global Energy Institute, expressed concern, stating that the decision “betrays our allies” and could slow down the energy transition.
Neil Chatterjee, former chairman of the Federal Energy Regulatory Commission, believes that the White House is making a mistake, both in terms of policy and politics. He argues that the US made a commitment to help European allies and that energy security should not be politicized.
Chatterjee also highlights the environmental benefits of US LNG, explaining that it displaces dirtier sources of fuel and reduces global carbon emissions. He criticizes activists for overlooking these facts.
In late January, several oil and gas advocates wrote a letter to Energy Secretary Jennifer Granholm opposing the proposed changes in the permitting process for US LNG exports. They argued that American energy should fill the supply gap in Europe, rather than relying on hostile nations like Russia. The benefits to the United States, they claimed, could include billions in capital expenditures, a boost to GDP, and the support of thousands of jobs.
“While our European allies have made significant strides in reducing their reliance on Russian natural gas thanks to American energy producers, Europe faces a considerable supply gap over the long-term that should be met by American energy, not hostile nations. Moving forward with a pause on U.S. LNG export approvals would only bolster Russian influence and undercut President Biden’s own commitment to supply our allies with reliable energy, undermining American credibility and threatening American jobs. An analysis of the President’s pledge to Europe found that the benefits to the United States could include $63 billion in capital expenditures, a GDP boost of $46 billion, and 71,500 jobs supported annually from 2025-2030.”
What are the far-reaching consequences of the temporary pause on LNG exports for the United States, its allies, and the global energy market
Ting, “The pause on LNG exports is a missed opportunity for American workers and for our allies who would benefit from access to our abundant natural gas supplies. It also sends a troubling signal to the rest of the world about America’s commitment to free trade and global energy security.”
Those in favor of the pause argue that it is necessary to reassess and strengthen the regulations surrounding LNG exports. They believe that the previous administration’s lax approach to export authorizations could have had negative environmental impacts and undermined the United States’ progress towards clean energy goals.
Emily Williams, a spokesperson for the Sierra Club’s Beyond Dirty Fuels campaign, supports the temporary pause, stating, ”The United States needs a comprehensive review of LNG exports, including an assessment of their climate impacts, before any more projects are allowed to move forward. We must prioritize a swift transition to clean, renewable energy sources and stop propping up dirty fossil fuels.”
It is important to note that this pause on LNG exports is not permanent, but rather a temporary measure to allow for further analysis and evaluation. The Department of Energy will review the underlying analyses for authorizations and determine any necessary adjustments before making any further decisions.
The temporary pause on LNG exports has raised concerns among industry stakeholders, environmental activists, and allies who rely on American natural gas supplies. It is a contentious issue that highlights the complex relationship between energy production, environmental concerns, and global trade. The outcome of this temporary pause will have far-reaching consequences, impacting not just the United States but also its allies and the global energy market.
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