Per the WSJ, Joe Biden's decision to halt new LNG export terminals follows an intense campaign by environmental groups funded by wealthy contributors.
Our Take, with Doug Sheridan
Per the WSJ, Joe Biden's decision to halt new LNG export terminals follows an intense campaign by environmental groups funded by wealthy contributors.
Foundations controlled by members of the Rockefeller Family, along with other wealthy donors, including the philanthropy of Michael Bloomberg, have provided millions of dollars in recent years to front-line environmental groups campaigning against fossil-fuel projects, including LNG terminals proposed on the Gulf Coast.
Reportedly, the campaign wasn’t the only factor in Biden’s decision to pause new LNG approvals. Admin officials also pointed to new research on the emissions from LNG facilities, as well as an interest in better understanding how LNG exports affect the US economy and national security.
Our Take 1: A glaring problem with today's energy transition math is that it obsesses on the carbon emissions of fantasy green energy that doesn't exist... and won't exist anytime soon. And it does so at the expense of other real-world energy sources that consumers prefer. To wit, to assume Russian, Middle Eastern and other producers won't step in to provide their own increased supply—with a larger carbon footprint than US LNG—is delusional.
Our Take 2: After parsing research on LNG emissions, it's clear to us that petroleum and other industry professionals should continue to focus hard on reducing fugitive methane emissions... from wellhead to burner tip. That, combined with the latest gas-fired generation technologies, will seal the deal for the fuel as the clear alternative to coal-fired generation for decades to come.
Our Take 3: According to the Dept of Energy, the EIA forecasts that high LNG exports would cause US gas prices to rise 13% by 2050. But the charts from that study—see the EnergyPoint Research post below—indicate the effect of the LNG exports on prices is modest and won't really show up until 2040.
Our Take 4: And by the way, the EIA study the Biden admin references also indicates that allowing more oil and gas into the global market will lower US natural gas prices 25% by 2050—twice the effect higher prices of fast builds of LNG facilities. So is the admin interested in lower energy prices... or not?