The Implications of Expanding U.S. LNG Exports Over Renewable Energy Options
As Republican President-elect Donald Trump sets to boost the already soaring exports of liquefied natural gas (LNG) in the United States after assuming office next week, a recent report released on Friday highlights the detrimental effects of increasing U.S. LNG exports. These effects include price instability, environmental and safety concerns for American households, and inadvertently providing geopolitical benefits to China.
The report titled Strategic Implications of U.S. LNG Exports, was produced by the American Security Project, a think tank based in Washington, D.C. This report provides an in-depth analysis of the consequences stemming from the surge in natural gas exports caused by fracking, through to the Russian invasion of Ukraine. It discusses how this surge in U.S. exports on the global stage is transforming both regional and domestic security landscapes.
A summary of the report explains:
The United States, as the leading producer and top exporter of natural gas worldwide, has played a significant role in shifting global energy markets away from coal over the past decade with its economical LNG exports. This shift has lessened geopolitical risks associated with fossil fuel imports from Russia and the Middle East. Presently, U.S. LNG is vital in diversifying global energy sources and lessening dependence on hostile nations for energy. Nevertheless, the growing global reliance on natural gas introduces new risks, including price volatility, shipping disruptions, and the intrinsic dangers to health, safety, and the environment. Additionally, the U.S. is facing challenges from geopolitical maneuvers such as China’s strategy of stockpiling and reselling inexpensive U.S. LNG exports to bolster its renewable sectors and extend its global influence.
The report further asserts that compared to natural gas, renewable energy sources typically offer superior long-term energy security due to their local availability, decreased reliance on imports, and lesser susceptibility to geopolitical upheavals.
Matthew Wallin, CEO of the American Security Project, emphasized in a statement the necessity for action to shield Americans from global price spikes, climate change effects, and emerging health and safety threats.
Wallin also highlighted the need for the U.S. to counteract geopolitical adversaries like China, which exploit their economic growth and influence by purchasing low-cost U.S. LNG only to resell it at elevated market prices. He stressed that LNG is often considered a transitional fuel, and the U.S. must commit to progressing towards renewable energy sources instead of becoming dependent on another precarious fuel.
However, critics argue that LNG impedes the transition toward a sustainable, green economy. Predominantly methane, LNG releases a potent greenhouse gas with a global warming potential more than 80 times that of carbon dioxide over the initial 20 years after its release.
Despite the Biden administration’s 2024 halt on new LNG export permits, it has overseen a significant escalation in LNG projects, such as the Venture Global’s Calcasieu Pass 2 in Cameron Parish, Louisiana, among others. Recently, the U.S. Department of Energy admitted that more LNG exports would likely lead to higher domestic energy costs, increased pollution, and an intensification of the climate crisis.
In stark contrast, Trump plans to reverse Biden’s recent prohibition on offshore oil and gas drilling across over 625 million acres of U.S. coastal waters. With his Cabinet likely to include several fossil fuel advocates, an increase in LNG production and exports is anticipated under his administration.
Another report released by Friends of the Earth and Public Citizen on the same day examines 14 proposed LNG export terminals that Trump’s administration aims to expedite. These projects would produce approximately 510 million metric tons of climate pollution, equivalent to the emissions from 135 new coal-fired power plants.
Throughout his presidential campaign, Trump pledged to aggressively expand fracking and drilling, backed by $75 million from fossil fuel interests, as reported by The New York Times.
“This research exposes the alarming prospects of an LNG export expansion under a second Trump term,” stated Raena Garcia, a senior energy campaigner at Friends of the Earth. She warned that such expansion would lock in higher energy costs for U.S. citizens and propel the globe towards more severe climate catastrophes. She criticized the incoming administration’s apparent reckless approval of LNG exports driven by profit motives over public welfare.
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