Russia’s control of the natural gas market and prices results in some of our allies paying exorbitant rates. Expensive energy limits their economic competitiveness and their citizens’ quality of life.
The high prices Russia receives for exported energy also strengthen Putin at home. And a stronger Putin and a dominant Russia do little to advance U.S. interests.
The United States has a rare opportunity to simultaneously help its allies, strengthen its foreign policy hand and create much-needed jobs at home — all by exporting plentiful American natural gas. The question is whether the Obama administration will allow it.
U.S. producers can export liquefied natural gas (LNG), but the process often involves years of delay by the Energy Department. To speed things up, I have introduced legislation, with bipartisan support, that would provide faster approval of LNG exports to our NATO allies, Japan and other countries.
Our booming oil and gas industry has been a bright spot in the U.S. economy over the past four years as entrepreneurs have discovered new ways to tap hidden natural gas reserves. The energy boom has created thousands of good jobs at a time when our country has desperately needed them. Even more jobs can be created by exporting LNG.
Make no mistake: Our allies need energy to grow. If the United States does not supply that energy, someone else will. Russia continues to tighten its grip on Europe’s energy market. Canada and Australia are building robust export programs with regulations that are much more streamlined than the obstacle course that Washington requires American producers to navigate.
The most recent export application approved by the Energy Department, in May, took 29 months. It was the first request the department had approved in two years. A few days later, newly appointed Energy Secretary Ernest Moniz delayed indefinitely all 20 of the remaining applications awaiting department consent.
An April study for the Energy Department found that natural gas exports would be a boon for the U.S. economy. A study published last June predicted that increased exports could create 25,000 new jobs in the gas industry and 40,000 jobs along the supply chain.
Opponents of increased exports include extreme environmentalists who balk at nearly all U.S. energy development. They have joined forces with a few big businesses worried that a larger export market might raise natural gas prices in the United States. In fact, even if prices do rise, they are expected to remain at levels that are historic lows for the past decade. The Energy Department study found that any price increases would be more than offset by broader economic gains.
Russia is not waiting for us to compete in the global energy marketplace. It’s trying to expand its domination of the European market and has been negotiating to buy the gas distribution system in Greece. It is bidding to build a nuclear power plant in the Czech Republic. It’s also trying to influence the European gas pipeline expansion that will carry natural gas from the Caspian Sea.
In his first State of the Union address, Obama said that he would double U.S. exports by 2015. “If America sits on the sidelines while other nations sign trade deals, we will lose the chance to create jobs on our shores,” he warned.
If the president is serious about doubling our exports, his administration will follow the facts presented in the Energy Department study.
If he is serious about strengthening U.S. foreign policy and helping our allies, he will act to undermine Russian dominance in global energy markets.
If he is serious about creating good jobs, he will tell his energy secretary to approve, as soon as possible, the 20 remaining applications to export liquefied natural gas.
We cannot let this opportunity pass us by while Washington dithers.
dissident on Mon, 17th Jun 2013 12:28 pm
These clowns actually think they have the resources to export. Enough with the wishful thinking BS. The USA will not be setting up any LNG trains to the EU.
rollin on Mon, 17th Jun 2013 2:07 pm
Export will raise internal US gas prices which will drive further gas fracking. This in turn will increase export and cause another rise in internal gas prices, until the fields start to fail causing huge increases in gas prices and inevitable shortages.
We have ten to fifteen years of recoverable gas left, why not use it wisely?
GregT on Mon, 17th Jun 2013 2:27 pm
Export it, and create some 65000 jobs for a couple of decades, and further feather the nests of the already über-wealthy, or use it for the benefit of 315 million people by building alternate energy infrastructure for a future without fossil fuels. Seems like a no-brainier, but since when did intelligence trump greed?
Arthur on Mon, 17th Jun 2013 2:49 pm
It is like with gold: why sell it now if you can almost be certain that it will be more valuable in the future? And that will be the case with natural gas. Best advice: leave it were it is and pump it up later, and sell it at higher prices then.
Plantagenet on Mon, 17th Jun 2013 5:42 pm
Obama says we have 100 years of NG in the USA. Of course obama is going to promote NG exports—he’s only got 3 more years left in his term.