print-icon
print-icon

Biden Weighs Banning Natural Gas Exports To Save The Climate

Tyler Durden's Photo
by Tyler Durden
Authored...

Authored by Mike Shedlock via MishTalk.com,

The climate fear-mongers are pressuring Biden to ban natural gas exports. Let’s discuss the ramifications.

Climate Test for Natural Gas Exports

Politco notes Biden’s Aides Weigh Climate Test for Natural Gas Exports.

The Biden administration is launching a review that could tap the brakes on the booming U.S. natural gas export industry — a move that threatens to pit the president’s climate ambitions against his foreign policy agenda.

The review being led by the Department of Energy will examine whether regulators should take climate change into account when deciding whether a proposed gas export project meets the national interest, according to two people familiar with the action who were granted anonymity to discuss deliberations that have not yet been publicly acknowledged.

U.S. gas exports have jumped four-fold during the past decade as production has surged, turning the United States into the world’s largest natural gas exporter and helping Europe replace Russian shipments after Moscow’s invasion of Ukraine. But Biden also faces growing pressure from environmental groups to live up to his pledge to transition away from fossil fuels — something the U.S. also promised to do at last month’s climate summit in Dubai.

Roishetta Ozane, the founder of environmental group Vessel Project of Louisiana, welcomed the news that the Biden administration may be rethinking how it determines whether a proposed project is in the public interest. Ozane is among a group of green activists planning to protest next month at the Energy Department headquarters to pressure the administration to change how it evaluates export proposals.

“We’re really hoping that DOE will pause any new permits for industry, because we know that the Biden administration really needs a climate win and in order for them to win” the 2024 election, said Ozane, whose hometown of Sulphur, La., is within an hour’s drive of three LNG plants. “If these politicians want to be elected or re-elected in this upcoming presidential election, they’re going to have to make some bold choices and some bold moves.”

Democrats have been asking the Biden administration for months to consider how shipping massive amounts of natural gas overseas affects greenhouse gas emissions. Sen. Jeff Merkley (D-Ore.) asked Granholm in a letter last year to review how DOE weighs whether a project is in the public interest.

Democratic Minnesota Sen. Tina Smith said it was a mistake to ignore the pollution produced by the LNG sector.

Climate Win For Biden?

“We know that the Biden administration really needs a climate win and in order for them to win.”

The public is more than a bit sick of the policies of this administration. Banning natural gas exports would hurt Biden’s elections chances.

Biden Threat

Natural Gas Math

91.2 million tons * 0.005367 MMBtu/ton * $10/MMBtu = $48.8 billion. If we look at oil exports (back of the napkin math) 3.99 million b/d (avg) * $80/barrel (avg 2023)* 365 days = $110.5 billion. That seems like a lot of revenue for a country $34T in debt to stifle…just saying.

But what is this really about?

Banning LNG exports would tend to lower prices.

My Guess

Biden will not want to give Trump another energy card.

Nor will he want to risk Pennsylvania.

Addendum

One of my readers noted a point I failed to mention: Russia will sell more natural gas as a result.

Bingo: Reducing exports does not change global demand. It will only shift the source of the supply.

0
Loading...