OPINION:
The world is in the midst of a global energy crisis, and the need for clean, affordable, and responsibly sourced energy has never been more clear. Fortunately, there is a solution that can help meet global demand for affordable and reliable energy, while supporting global climate ambitions. American liquefied natural gas (US LNG) is the answer for nations desperate to alleviate energy shortages and to meet increasing demands of growing populations in an environmentally sustainable way.
The world’s demand for energy is expected to increase by 50% by 2050, and most of that growth will come from the developing world. The question is: what sources of energy will meet it and who will provide it? While renewables can and should play a role in meeting that demand, as we see in developed nations, renewables alone cannot power a growing economy.
Unfortunately, we are seeing countries increasingly turn to coal, which emits twice as much CO2 as natural gas. After years of decline, 2022 is expected to see record high global coal consumption. China and India together consume double the amount of coal as the rest of the world combined, and both are planning to expand their coal consumption by 25-30% in the coming years. The resulting emissions increases with dwarf emissions reductions achieved in the rest of the world.
The United States leads the world in emissions reductions, and 60% of the reductions were due to the use of natural gas to displace higher-emitting fuels. The model that has succeeded here in the US (increased use of natural gas, in conjunction with renewables, to support power generation) can be replicated around the world. And in doing so, will generate good paying jobs and economic benefits here at home.
But, not all natural gas is created equal. The GHG life-cycle emissions of natural gas vary by supplier. A recent analysis done by the Citizens for Responsible Energy Solutions explains that “Russian-produced natural gas shipped by pipeline to Europe has approximately 41% higher life-cycle emissions (CO2 equivalent) than US liquefied natural gas (LNG) shipped to the same destination. And, Russian-produced natural gas shipped to China has 47% higher life-cycle emissions than US LNG exported to China.”
Unfortunately, America’s natural gas industry faces headwinds in the form of unnecessary legal, regulatory, and political barriers that, if left unaddressed, could inhibit its expansion.
That is why AXPC, in partnership with LNG Allies and API, developed a series of practical, nonpartisan policies aimed at expanding US LNG exports to lower emissions, create jobs, and strengthen energy security for the US and our allies. If enacted, these policies would help the US maintain a consistent place as the world’s top LNG exporter for many years to come thereby supporting a safer, more sustainable global energy supply. Our policies are focused on four areas: international finance, environmental permitting reform, and Sections 3 and 7 of the Natural Gas Act.
US LNG exports strengthen the US security posture, and by extension, countries that import US LNG are more able to resist the influence of hostile third-party actors. Therefore, with regard to international financing, the Biden administration should remove all policy barriers to overseas natural gas projects and conflicting statements of policy on overseas natural gas projects, ensure that US LNG plays a central role in globally achieving a low-carbon future, and definitively declare that US LNG exports provide compelling national security and climate benefits.
When it comes to environmental permitting reform, LNG exports need a functioning permitting system that ensures that midstream infrastructure can be planned, built, and operated with a reasonable degree of speed and certainty. To benefit all types of energy development, improve supply, and alleviate a global energy crisis, Congress and federal agencies should include common-sense amendments to permitting statutes and implementing regulations, including the National Environmental Policy Act (NEPA), the Natural Gas Act, the Clean Water Act (CWA), and the Endangered Species Act (ESA).
We believe that meaningful permitting reform is vital to build the additional energy infrastructure necessary for America’s continued climate leadership and our ability to deliver affordable and reliable oil and natural gas to the world. Meaningful permitting reform includes removing unnecessary red tape and regulatory hurdles, reducing complexity and increasing clarity for environmental reviews, and providing legal and regulatory certainty for American businesses trying to build.
AXPC also recommends that Congress amend Section 3 of the Natural Gas to ensure that the US Department of Energy and the Federal Energy Regulatory Commission (FERC) provide fair and equal access for all LNG export authorizations, avoid unnecessary delays, and provide transparent and reliable rules of the road. These updates are important to ensure that permitting programs for LNG exports and export terminals are optimized so that our industry can supply our allies with clean, abundant natural gas.
Finally, AXPC believes that FERC discretion should be constrained in how and when the agency decides to issue certificates under Section 7 of the Natural Gas Act by requiring that FERC follow its 1999 Certificate Policy Statement governing approvals for natural gas infrastructure and preventing the agency from implementing the changes it proposed to that statement in March 2022. Interstate pipelines provide the safest, most affordable, and cleanest way to transport natural gas both domestically and to export facilities.
In each of these areas, we consulted the different segments of the natural gas industry, as well as former and current policy makers, and staff, and we released our recommendations earlier this month with bipartisan support.
We urge Congress and the Biden administration to acknowledge the essential role of US LNG in achieving a low-carbon future of abundant and responsibly sourced energy and consider our policy solutions to “unleash US LNG” to meet the world’s energy, security, and environmental goals. America and its allies deserve real solutions when it comes to addressing global climate change.
• Anne Bradbury is CEO of the American Exploration and Production Council (AXPC), which represents America’s largest independent oil and natural gas exploration and production companies. Prior to AXPC, Ms. Bradbury served as one of the top legislative strategists and technicians in Congress as Floor Director to two successive Speakers of the House of Representatives.
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