A Halt of LNG Permits Means: A Loss for U.S. Jobs, A Win for Russia.
The Biden administration recently announced a de facto moratorium on new liquified natural gas (LNG) permits. This move has far-reaching consequences. Not only is President Biden’s LNG ban a mistake that could impact U.S. jobs and economic growth, global environmental progress, and the security of America and its allies, but it’s also a clear win for Russia, China, and other countries that want to see America and its friends lose.
The Administration is playing politics by dragging its feet on LNG permits. But we’re not buying it. Energy policy shouldn’t be about scoring points in an election. It’s about jobs, security, and our future. Let’s keep the lights on and the jobs coming. Moreover, Biden administration officials supported exporting U.S. LNG to our allies before they were against it.
The videos below speak for themselves:
Biden’s Decision is Playing Politics
Everyone Is Asking The Right Questions
Stand Up for U.S. LNG Jobs & Energy Security
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The Facts
Halting new LNG permits is not only a mistake that could impact the security of America and its allies, U.S. jobs and economic growth, and environmental progress, but it’s also a clear win for Russia and all the countries that want to see America and its friends lose.
Impact on Our Security
America’s natural gas producers helped Europe avoid the worst of an energy crisis in 2022 after Russia cut flows of piped Russian natural gas to punish nations that opposed its invasion of Ukraine. America’s allies would have been in dire straits if not for a 141% increase in U.S. LNG in 2022 over 2021. LNG, not wind and solar, staved off disaster in Europe.
The fact is that, notwithstanding current market conditions, Europe faces a looming supply gap, as projected in this recent study. According to Didier Holleaux, president of trade association EuroGas told POLITICO (emphasis added):
“[America’s] LNG has been a relief for Europe and contributed to the stabilisation of gas and electricity prices in Europe for consumers, after a long period of record high prices caused by the Russian supply drop. [A lack of additional U.S. LNG capacity] would risk increasing and prolonging the global supply imbalance.”
As the world’s leading LNG supplier, the U.S. is well-positioned to meet that need. We should because the security of America’s allies strengthens our security.
Key Takeaway: This is bigger than European supply and Europe’s security. America’s security is closely connected to the security of its allies, especially as they oppose Russian aggression in Ukraine. When America’s allies are less secure, America is less secure.
Impact on Consumers
According to the International Energy Agency, U.S. natural gas prices remain among the lowest in the world. While U.S. LNG shipments reached record highs in 2023, domestic prices declined 62% as U.S. natural gas production surged to record levels. This shows the ability of America’s natural gas producers to meet global demand while keeping the domestic market well supplied. Along with this, LNG has provided significant domestic jobs and economic benefits. This is quantified in a recent ICF study, which estimated that meeting President Biden’s LNG pledge to Europe would support 429,000 additional jobs-years from 2025 to 2030 or an average of 71,500 jobs each year, spur $63.1 billion in capital expenditures for facilities and pipeline projects throughout the supply chain, and contribute a total of $46 billion to the U.S. economy over the same five-year period.
429000
Additional jobs from 2025-2030 supported by President Biden’s LNG pledge to Europe.
71500
Jobs per year, over 2025-2030, supported by President Biden’s LNG pledge to Europe.
$46 Billion
Contributed to the U.S. economy via President Biden’s LNG pledge to Europe
Key Takeaways: America should build more infrastructure – not restrict it – for ourselves and our allies. The Administration’s halt on new LNG permits is a failure because it prioritizes politics over sound energy policy.
LNG vs. Coal
Natural gas opponents have made a lot of noise based on an unpublished, still-under-review study by a longtime natural gas foe, falsely claiming that LNG is worse for the climate than coal. Credible science says otherwise.
According to the U.S. Energy Information Administration (EIA), using natural gas as a fuel results in fewer emissions of nearly all types of air pollutants and carbon dioxide (CO2) than burning coal – about 50% fewer emissions of CO2. We’ve seen this help reduce U.S. emissions.
Switching to natural gas from coal to fuel power generation is the main reason U.S. CO2 emissions from that sector are among generational lows. EIA says natural gas has accounted for more than 60% of the CO2 emissions reductions in the power sector from fuel switching – about twice as much as the emissions attributed to renewable fuel sources.
Meanwhile, U.S. LNG suppliers are global industry leaders in reducing greenhouse gas emissions. For example, Cheniere reports that between 2016 and 2020, methane emissions intensity decreased by 52% at its facilities. Cheniere’s methane emissions intensity of 0.008% was below the Oil and Gas Climate Initiative’s target of 0.2% (also EPA’s Waste Emissions Charge threshold for production). Sempra reports achieving a greenhouse gas emissions intensity of 41% less than its 2020 baseline (the company’s goal was 20%). Other companies have reported similarly.
So, why would the Administration do an about-face and Sbasically encourage more coal use? IEA has already projected that 2023 would see record levels of coal use, and the president’s LNG ban can only continue that trend because coal is the leading alternative to LNG in the growing economies of India and across Asia, not wind and solar.
60%
The amount of CO2 emissions reductions accounted for by natural gas.
50%
Using natural gas as a fuel results in about 50% fewer CO2 emissions than burning coal.
Key Takeaways: America should build more infrastructure – not restrict it – for ourselves and our allies. The Administration’s halt on new LNG permits is a failure because it prioritizes politics over sound energy policy.
Bottom Line:
President Biden’s halt on pending and future U.S. LNG projects poses risks to American jobs, economic growth, and national security.
We hope this breakdown helps members of Congress underscore LNG’s role in supporting domestic employment, reducing emissions, and enhancing global energy security. The Administration’s decision reflects a disconnect with the realities of the global energy landscape and emphasizes the urgent need to prioritize American energy leadership.
