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Joe Biden and Ursula von der Leyen, President of the European Commission, at a press conference in Brussels on Friday.
Russia’s invasion of Ukraine seems to be HelpingThe American natural gas industry. Friday, President Joe Biden and European Commission AnnouncementA plan for the United States of shipping 50 billion cubic meters liquified natural gaz to Europe each year through at minimum 2030. This is more that double current shipments.
This is amidst steps taken by Washington policy makers to loosen natural-gas regulations. Those include a DecisionUnder congressional pressure, the Federal Energy Regulatory Commission decided Thursday to reverse a policy that would have evaluated the climate effects of existing natural-gas pipelines.
These steps are part and parcel of an Regression apparent by Democrats and the Biden administration from the president’s campaign promises to transition away from fossil fuel. That shift is driven by circumstances—Russia’s attack on Ukraine and congressional Hostilities to his climate proposals—but is nonetheless deeply disappointing environmental to advocates.
The recalibration has been completed reportedly drawn opposition from some within the White House, who object to boosting LNG exports to Europe. Biden attempted to downplay environmental concerns on Friday. “This build-out—this build-out will occur in a way that consists—is consistent with, not in conflict with, the zero—net-zero climate goal we—that we’re shooting for,” he Without explanation.
Gas prices were already It is soaring. And the stock of US-based gas companies rose after Biden’s announcement. The US cannot easily increase LNG exports into Europe. Despite high prices, US export facilities remain Already OperatingNearly at full capacity The White House was supportive of the oil and gas industry’s deal announced Friday. This is likely to encourage new drilling and infrastructure investment, including expanded LNG facilities. Wall Street Journal reported. The joint announcement Friday “sent a powerful signal to the market,” Mike Sabel, chief executive of Venture Global LNG, which runs a new LNG facility in Louisiana, TelledThe paper.
Similar developments are expected in Europe. The European Commission PromisedTo expand facilities to receive LNG shipping. The infrastructure required to convert liquidized gas back into gas after shipping is different from the pipeline-shipped Russian gas European states have relied upon. (Nordstream 2, heavily-lobbiedThe Russia-to-Germany pipeline was a planned project that would have made Germany more dependent on Russian supplies. However, it was a good thing for the Germans. Shelved the project after Russia’s invasion of Ukraine.)
Environmental groups blasted the administration’s plan for the same reason that oil and gas companies celebrated it. “President Biden campaigned on bold and ambitious goals to tackle the climate crisis and environmental injustice,” Kelly Sheehan, the Sierra Club’s director of energy campaigns, Telled Bloomberg. “Supporting the push to expand gas exports and lock in decades of fossil fuel production is directly in conflict with these goals.”
