01.26.24

Desperate To Appease Climate Zealots, Biden’s Blinkered LNG Policy Throws National Security And American Jobs Under The Bus

Caving To The Demands Of Far-Left Climate Activists, The Biden Administration Is Stalling Permits For Crucial Liquified Natural Gas Exports, Placing Climate Virtue Signaling Over The Energy Security Of Our European Allies And Jobs For Americans

SENATE REPUBLICAN LEADER MITCH McCONNELL (R-KY): “When President Biden took office, the average approval time for liquefied natural gas (LNG) permits was about seven weeks. Right now, it’s about eleven months. But soon, wait times could actually become irrelevant. At the behest of climate activists, the Administration is now considering adding a ‘climate test’ to the ‘national interest’ analysis regulators conduct before approving new LNG projects. Nevermind that climate interests all too often run in the exact opposite direction of America’s national interests. This move would amount to a functional ban on new LNG export permits. The Administration’s war on affordable domestic energy has been bad news for American workers and consumers alike…. And now further limits to LNG exports will only send energy costs higher at a time when the West is trying to reduce its reliance on Russian energy. This agenda is not just bad for Americans at home, either. It’s directly at odds with America’s interests on the world stage.” (Sen. McConnell, Remarks, 1/24/2024)

  • LEADER McCONNELL: “From Russia to Iran to China, it is abundantly clear that our adversaries are not waiting for us to wake up from this experiment in green self-harm. Russia is building a new export facility for liquefied natural gas that is scheduled to be up and operating as soon as next year. Iran is also in the process of completing an LNG export facility to be ready next year as well. It should go without saying that increasing global reliance on Russian and Iranian energy is not sound strategy…. Our allies in Europe are increasingly relying on us to keep their lights and their heat running. It was LNG exports from the United States that allowed Europe to reduce its reliance on Russian energy in the wake of their attack on Ukraine. So, if the Biden Administration is foolish enough to shut down our LNG exports or saddle their national interest analysis with Green New Deal schemes, I hope they understand which nations’ interests they’re advancing. Choose our nation’s interests or blindly follow some green radical scheme to empower our political rivals in China, Iran, and Russia. It’s hard to fathom this is even a question the Biden Administration is contemplating.” (Sen. McConnell, Remarks, 1/24/2024)

SENS. BILL CASSIDY (R-LA), JOHN KENNEDY (R-LA), AND 24 REPUBLICAN SENATORS:U.S. LNG exports have served as a vital lifeline for countries in Europe and across the globe. Nearly half of U.S. LNG exports have been delivered to Europe to date, with a significant increase in exports following Russia’s invasion of Ukraine. When European imports of LNG increased by 60 percent in 2022, U.S. LNG met that demand. Without U.S. LNG exports, European leaders would have to decide between depriving their own citizens of energy or actively funding Russia’s war on Ukraine. … Russia is also in the process of dramatically expanding its future LNG export capacity. Now, Iran-backed forces have provoked a second war in the Middle East and are threatening shipping lanes through which LNG is shipped to Europe and Asia. At the same time, Iran is seeking to benefit from the war by ramping its own domestic LNG exports to displace the very supplies it helped to disrupt…. We strongly urge you to stop this shortsighted effort. As the President of the United States and as the Secretary of Energy, you should be championing – not undermining – American LNG exports and the environmental, economic, and national security benefits to the United States and our allies.” (Sen. Cassidy, Press Release, 1/26/2024)

  • Limiting U.S. LNG exports do not have any impact on the world’s demand for natural gas. Instead, countries including Russia and Iran will simply produce more energy that is subject to less stringent environmental regulations. As a result, limiting American LNG exports in the name of stopping climate change could do just the opposite and add to global emissions. (Sen. Cassidy, Press Release, 1/26/2024)

THE WALL STREET JOURNAL EDITORIAL BOARD: “[I]t’s hard to believe the Biden Administration is considering an election-year gift to Russia and Iran: An embargo on permitting new liquefied natural gas (LNG) export projects. Our sources say Biden adviser John Podesta is pushing the idea in the White House as a sop to the climate lobby …” (Editorial, “Biden Toys With an LNG Export Permitting Ban,” The Wall Street Journal, 1/22/2024)

Caving To The Demands Of Extreme Climate Lobbyists, The Biden Administration Announced It Will Stall Permits For Liquified Natural Gas Export Facilities

“White House officials have instructed the Energy Department to study the climate change impact of liquefied natural gas export terminals before approving the fossil fuel facilities, the Biden administration announced Friday…. The climate review could delay the approval of nearly a dozen proposed gas export projects past the November election. That could help Biden court young voters who consider such projects to be a ‘climate bomb,’ but at the risk of antagonizing other interests, including allies in Europe and fossil fuel companies.” (“U.S. Stalls Gas Export Projects That Activists Say Are ‘Climate Bombs,’” The Washington Post, 1/26/2024)

“Two federal agencies are responsible for approving permits for LNG projects. The Federal Energy Regulatory Commission must decide whether to authorize the siting and construction of projects, and the Energy Department must determine whether it’s in the ‘public interest’ to export gas to countries with which the United States lacks a free-trade agreement.” (“U.S. Stalls Gas Export Projects That Activists Say Are ‘Climate Bombs,’” The Washington Post, 1/26/2024)

“The Energy Department has never determined that gas exports are not in the ‘public interest.’ In response, environmental activists have pressured the department to overhaul its approach to better account for climate impacts.” (“U.S. Stalls Gas Export Projects That Activists Say Are ‘Climate Bombs,’” The Washington Post, 1/26/2024)

“In a joint announcement Friday morning, the White House and Department of Energy (DOE) said the pause would occur while federal officials conduct a rigorous environmental review assessing the projects' carbon emissions, which could take more than a year to complete. Climate activists have loudly taken aim at LNG export projects in recent weeks …” (“White House Halts Enormous Natural Gas Projects In Victory For Environmentalists,” Fox News, 1/26/2024)

The Biden Administration’s Decision Came After Intense Lobbying By Climate Zealots: ‘This Is Just What The Climate Activists Wanted’

‘Halting The Expansion Of LNG Exports Has Become A Top Priority Of Environmentalists In Recent Months’

Halting the expansion of LNG exports has become a top priority of environmentalists in recent months. Before news of the administration’s decision broke, the author and climate activist Bill McKibben had been planning a ‘Stop LNG’ sit-in outside the Energy Department in early February. McKibben this week declared victory. ‘It’s pretty clearly the win,’ he wrote in a text message to The Washington Post.” (“U.S. Stalls Gas Export Projects That Activists Say Are ‘Climate Bombs,’” The Washington Post, 1/26/2024)

“Biden’s top climate aides, including White House National Climate Adviser Ali Zaidi and clean energy senior adviser John Podesta, advocated for considering the climate consequences of gas exports …” (“U.S. Stalls Gas Export Projects That Activists Say Are ‘Climate Bombs,’” The Washington Post, 1/26/2024)

Extreme Green New Deal Sponsors In Congress Also Pushed The Administration To Stymie LNG Exports

65 DEMOCRAT MEMBERS OF CONGRESS: “We write to urge the Department of Energy (DOE) to update how it determines whether new licenses for liquefied natural gas (LNG) exports are in the public interest….  We are concerned that DOE’s current approach does not fully or accurately consider how LNG exports negatively impact the climate [or] environmental justice communities … DOE has never rejected an LNG export application on the basis of adverse impacts to the American people, and we urge DOE to consider at what point additional export licenses are no longer consistent with the public interest …” (Letter to Sec. Granholm, 11/14/2023)

SEN. ED MARKEY (D-MA), Green New Deal Sponsor: “The Biden Administration is including climate action, environmental justice, and the care economy in its recovery plans. That’s the DNA of the Green New Deal that we introduced.” (Sen. Markey, Press Conference, 4/20/2021)

‘The Biden Administration Is Looking To Appease Progressives,’ ‘They Are Angry… They Are Not Going To Support This President Unless He Makes A Bold Move’

“The Biden administration is looking to appease progressives who want it to block proposed expansions of the nation’s natural gas exports.” (“Biden Seeks To Appease Progressives With Climate Moves,” The Hill, 1/25/2024)

The Biden administration has been under fire from climate activists upset about the approval of the Willow drilling project in Alaska and the Mountain Valley Pipeline in West Virginia. Approving CP2  would have further enraged climate-conscious voters.” (“A Huge Win For Activists Puts Climate On The 2024 Agenda,” The New York Times, 1/25/2024)

“And while environmental activists broadly praised the anticipated move from the Biden administration as a significant step in the right direction, some said that a pause and expanded climate review on the proposed export expansion would not be enough on their own, and that the projects should be stopped. ‘Growing national pressure from youth and frontline communities to end fossil fuel expansion got us here. Now the administration needs to go the full nine yards and reject CP2 and all new oil and gas projects,’ Jean Su, director of the Center for Biological Diversity’s Energy Justice program, said in a written statement.” (“Biden Seeks To Appease Progressives With Climate Moves,” The Hill, 1/25/2024)

‘The Politics Of Climate Change Are A Big Factor In The White House Making This Move’

THE NEW YORK TIMES: “This is just what the climate activists wanted.” (“A Huge Win For Activists Puts Climate On The 2024 Agenda,” The New York Times, 1/25/2024)

“Some analysts said they view the administration’s decision as an olive branch to young voters, whom polls show prioritize climate action more than older generations.” (“U.S. Stalls Gas Export Projects That Activists Say Are ‘Climate Bombs,’” The Washington Post, 1/26/2024)

The Biden Administration Courted Far-Left Activists And Influencers As It Made Its LNG Decision

“Reports that Biden would seek to delay the CP2 project and require it to undergo a climate review drew praise from progressives and environmental organizations.” (“Biden Seeks To Appease Progressives With Climate Moves,” The Hill, 1/25/2024)

Slow walking the approval process of CP2 is just what activists like Ozane were looking for. Ahead of the decision, White House climate advisers met with activists like Alex Haraus, a 25-year-old Colorado social media influencer who has led a TikTok and Instagram campaign aimed at urging young voters to demand that Mr. Biden reject the project.” (“A Huge Win For Activists Puts Climate On The 2024 Agenda,” The New York Times, 1/25/2024)

American LNG Is Vital To European Energy Supplies, Allowing U.S. Allies To Resist Russian Energy Blackmail: ‘No One Hates U.S. L.N.G. More Than Vladimir Putin’

“The United States is already a powerhouse in energy production, with its LNG exports playing a crucial role in helping Europe break free of its reliance on Russian gas.” (“U.S. Stalls Gas Export Projects That Activists Say Are ‘Climate Bombs,’” The Washington Post, 1/26/2024)

“Recent events demonstrated the unique aspects of U.S. LNG. Russia’s curtailment of pipeline gas supplies led to a dramatic increase in European gas and electricity prices in the second half of 2021, and its war on Ukraine since February 2022 created even more severe challenges. Strong price signals in Europe attracted supply, and European LNG imports rose by 60 percent in 2022. U.S. LNG met much of this demand. Although Asia had previously been the main destination for U.S. LNG exports, about two-thirds of cargoes over the past two years ended up in Europe. Without growing volumes and flexible supplies from the United States, it would have been much more challenging to accommodate these shocks, and there would have been a massive price discrepancy in the Atlantic and Pacific basins. The United States now plays a critical balancing role in the global LNG market, adding supply and flexibility that has boosted global energy security.” (Ben Cahill, “U.S. LNG Export Boom: Defining National Interests,” Center for Strategic & International Studies, 1/11/2024)

“The administration’s decision has cast uncertainty over a mammoth LNG project on the Louisiana coast known as Calcasieu Pass 2, or CP2. The project is closer to becoming operational than nine other proposed LNG terminals, since it has already secured financing and customers and is awaiting federal permits. Shaylyn Hynes, a spokeswoman for the project’s owner, Venture Global, said in an email that ‘it appears the Administration may be putting a moratorium on the entire US LNG industry. Such an action would shock the global energy market, having the impact of an economic sanction, and send a devastating signal to our allies that they can no longer rely on the United States.’” (“U.S. Stalls Gas Export Projects That Activists Say Are ‘Climate Bombs,’” The Washington Post, 1/26/2024)

Even Some Biden Administration Officials Understood The Negative National Security Implications Of Restricting Natural Gas Exports

“But early on, top national security officials, including senior energy adviser Amos Hochstein and Secretary of State Antony Blinken, voiced concerns about curtailing gas exports to European allies in the event of another geopolitical conflict such as Russia’s invasion of Ukraine.” (“U.S. Stalls Gas Export Projects That Activists Say Are ‘Climate Bombs,’” The Washington Post, 1/26/2024)

‘The Biden Administration’s Climate-Driven Rethinking Of U.S. Natural Gas Exports Is Spooking Europe’s Fragile Energy Industry’

“The Biden administration’s climate-driven rethinking of U.S. natural gas exports is spooking Europe’s fragile energy industry. The reassessment of how the Department of Energy approves gas export permits, first reported by POLITICO, threatens to stall projects that Europe depends on to meet its energy demands while it tries to counter Russia’s war in Ukraine.” (“US Rethinks Gas Exports, Spooking Europe,” Politico, 1/19/2024)

  • “The EU is the world’s largest buyer of LNG. The region has invested billions into building infrastructure to increase its import capacity, adding six new port terminals since the start of 2022 as part of efforts to divest from Russian pipeline gas — often despite objections from environmental groups. The expansion will mean that by 2030 it will be capable of receiving more than 400 billion cubic meters of the liquefied fuel, an increase of more than 25 percent compared with the year before Russia’s full-scale invasion of Ukraine.” (“US Rethinks Gas Exports, Spooking Europe,” Politico, 1/19/2024)

“This month, energy associations Eurogas and the Asia Natural Gas & Energy Association (ANGEA) issued strong statements of support for continued permitting of U.S. LNG export terminals. Eurogas reiterated such exports were critical for ensuring the full phase down of Europe's dependence on Russian natural gas, while ANGEA added U.S. LNG is needed to meet Asia's decarbonization goals.” (“White House Halts Enormous Natural Gas Projects In Victory For Environmentalists,” Fox News, 1/26/2024)

“The German state-owned energy company Securing Energy for Europe said in a recent letter to Granholm that U.S. LNG is ‘vital for Germany's energy security.’ That company has already entered into a purchase agreement with at least one proposed LNG export terminal project in Louisiana.” (“White House Halts Enormous Natural Gas Projects In Victory For Environmentalists,” Fox News, 1/26/2024)

‘U.S. Fossil Fuel Exports, Particularly Liquefied Natural Gas, Played A Huge Role In Keeping The European Alliance Together,’ ‘Unimaginable There Would Be A Chance Of Weathering The Storm In Europe But For American LNG’

“The Russian troops who poured into Ukraine [in 2022] had a seemingly powerful weapon to keep Kyiv’s would-be allies cowed — Moscow’s dominance of Europe’s oil and gas supplies. A year later, that strategy has backfired. Instead, a flow of American energy has given the United States a growing role in the continent’s economy, while pushing Russia to the side. U.S. companies provided 50 percent of Europe’s liquefied natural gas supplies in 2022, along with 12 percent of its oil.” (“How American Energy Helped Europe Best Putin,” Politico, 2/23/2023)

  • “Russian exports of liquefied natural gas (LNG) to Europe fell 1.9% to 15.8 million metric tons in 2023, and LNG exports to Asia fell 11% to 14.9 million tons, LSEG data showed on [January 2nd]. Europe increased purchases of LNG from global producers in 2023 while sharply cutting its imports of Russian pipeline gas in response to the conflict in Ukraine.” (“Russian LNG Exports To Europe Fell 1.9% In 2023 - LSEG Data,” Reuters, 1/02/2024)

“U.S. fossil fuel exports, particularly liquefied natural gas, played a huge role in keeping the European alliance together over the past year, said Daniel Yergin, vice chairman of S&P Global and author of ‘The New Map,’ a book examining the geopolitics of energy. Putin had hoped to use gas as a weapon to shatter European support for Ukraine, he said, a miscalculation that so far hasn’t come to fruition. ‘The war in Ukraine has demonstrated that U.S. LNG exports are not only of economic energy importance,’ Yergin said in an interview. ‘They’ve also now taken on a strategic importance. U.S. LNG has become one of the foundations of U.S. and European energy security, part of the replacement for Russian gas and has even become part of the arsenal of NATO.’” (“How American Energy Helped Europe Best Putin,” Politico, 2/23/2023)

“Frank Fannon, a former State Department first assistant secretary for energy resources under the Trump administration, said the decision by U.S. companies to structure their multi-year delivery contracts to allow buyers to ship the gas wherever they wanted played a major role in overcoming Russia’s switching off its pipelines…. ‘I would find it unimaginable there would be a chance of weathering the storm in Europe but for American LNG,’ said Fannon, who is now managing director of energy and geopolitical advisory firm Fannon Global Advisors. ‘It’s absolutely inconceivable. It isn’t just the volumes of U.S. gas, but also the way that American companies have transformed the market.’” (“How American Energy Helped Europe Best Putin,” Politico, 2/23/2023)

The EU’s Top Energy Official ‘Says US Gas Will Be Needed For Decades’

“Europe will have to rely on US fossil fuels for decades to come as it races to diversify from Russian natural gas and scale up its renewables sector to boost energy security, the EU’s top energy official has said. Ditte Juul Jørgensen told the Financial Times that … the bloc’s reliance on exports of US liquefied natural gas would persist. ‘We will need some fossil molecules in the system over the coming couple of decades. And in that context, there will be a need for American energy,’ said Jørgensen, director-general for energy in the European Commission, in an interview in New York.” (“Top EU Energy Official Says US Gas Will Be Needed For Decades,” Financial Times, 9/24/2023)

The Biden Administration’s Shortsighted Stalling Of LNG Exports Also Threatens American Jobs, Especially On The Gulf Coast

SENS. BILL CASSIDY (R-LA), JOHN KENNEDY (R-LA), AND 24 REPUBLICAN SENATORS: “Finally, the export of U.S. LNG provides significant economic benefits across the country. According to an ICF study, increased exports of U.S. LNG could create more than 450,000 jobs and increase GDP by $73 billion. Given the recent growth in the domestic LNG industry, those benefits could be even greater today and in the future. We strongly urge you to stop this shortsighted effort. As the President of the United States and as the Secretary of Energy, you should be championing – not undermining – American LNG exports and the environmental, economic, and national security benefits to the United States and our allies.” (Sen. Cassidy, Press Release, 1/26/2024)

“Many liquefied natural gas, or LNG, export facilities are in communities of color on the Gulf Coast and other parts of the country.” (“U.S. Stalls Gas Export Projects That Activists Say Are ‘Climate Bombs,’” The Washington Post, 1/26/2024)

“One area primed for growth could be Lake Charles. That region could gain 7,200 jobs over the next two years.” (“If Industrial Projects Happen, New Orleans Area Could Gain 20,800 Jobs By 2025, Economist Says,” The New Orleans Times-Picayune, 10/03/2023)

“[Then] Louisiana Governor John Bel Edwards said in the release that ‘The CP2 facility in Cameron (Parish) will create more than 1,000 new permanent jobs and thousands of construction jobs in the area, which will have a significant impact on our economy.’” (“Venture Global To Spend Over $10 Bln On Fourth Louisiana LNG Plant,” Reuters, 12/02/2021)

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