The Biden administration is undertaking a comprehensive review that could significantly affect the burgeoning US natural gas export industry, potentially creating a clash between President Joe Biden’s climate goals and foreign policy objectives.
Politico notes that the review’s outcome “could have big implications for the fossil fuel industry, US clout as an energy superpower and the credibility of President Joe Biden’s climate pledges — and his reelection hopes in November.”
Led by the Department of Energy (DOE), the review will assess whether regulators should factor in climate change considerations when determining if a proposed gas export project aligns with national interests. This initiative follows a four-fold increase in US gas exports over the past decade, which has made the country the world’s leading natural gas exporter. This surge has aided Europe in replacing Russian gas supplies after the invasion of Ukraine, but it also places Biden under mounting pressure from environmental groups to fulfill his promise of transitioning away from fossil fuels.
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Environmentalists view the potential slowdown in export growth as positive news, especially regarding a massive gas export plant in Louisiana known as CP2, which they criticize as a “carbon bomb.” The Biden administration’s reconsideration of the evaluation criteria for export projects is seen as a pivotal step by green activists, who plan to protest at the Energy Department headquarters to advocate for a change in how such proposals are assessed.
The DOE’s review involves key figures like Energy Secretary Jennifer Granholm, Deputy Energy Secretary David Turk, and White House clean energy adviser John Podesta, among others. The reassessment aims to encompass climate impacts, national security considerations, and domestic economic consequences. The Energy Department will evaluate the evolving understanding of liquefied natural gas (LNG) emissions, economic impacts, and national security implications that have become apparent over the past decade.
As environmentalists applaud the potential shift, national security experts caution against disrupting US gas exports, emphasizing its role in supporting allies and maintaining diplomatic influence, particularly in the ongoing conflict between Ukraine and Russia. Critics argue that any impediment to new export capacity could undermine US diplomacy and become a significant foreign policy liability.
The Natural Gas Act requires the DOE to assess the public interest before approving natural gas export permits. Critics allege that the DOE has routinely approved applications without sufficient scrutiny. Industry executives argue that LNG exports benefit the public by helping countries transition away from coal, emphasizing the abundant gas reserves in the US.
According to a report from Bloomberg which cited two people familiar with the matter, a panel of government officials, convened by White House climate adviser Ali Zaidi, will develop a recommendation for President Biden. They met on Saturday but have yet to present a recommendation.
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