U.S. Energy Official to Defend Biden’s Pause on LNG Exports
Energy Official to Defend Biden’s Decision
A top U.S. Department of Energy official will be testifying before the Senate Energy and Natural Resources Committee to defend President Joe Biden’s pause on approvals of liquefied natural gas (LNG) exports. This comes after Senator Joe Manchin, a Democrat from natural gas-producing West Virginia, called for an investigation into the decision.
Senator’s Concerns
Senator Manchin has expressed his concerns and stated that he will investigate the decision. He is particularly worried that the pause might be a political move that could negatively impact American workers, businesses, and allies in need.
Biden’s Decision
President Biden paused the approvals indefinitely to allow his administration to thoroughly evaluate the environmental and economic impacts of the growing LNG industry. The U.S. became the world’s top LNG exporter last year, and shipments are expected to double by the end of the decade with already approved projects.
Environmental and Business Concerns
Environmentalists and youth groups have pressured Biden to slow approvals of fossil fuel projects due to concerns about greenhouse gas emissions. Additionally, domestic businesses, including those in the chemical, steel, food, and agriculture sectors, oppose unrestricted exports of U.S. gas, citing potential fuel price increases.
Legislative Response
Efforts to overturn the pause through legislation may face challenges, especially in an election year. Legislation proposed in both the Senate and the House of Representatives aims to strip the Department of Energy’s power to approve exports, transferring all approvals to the independent Federal Energy Regulatory Commission (FERC).
- Passing legislation in an election year is difficult.
- The legislation would likely face challenges in the Senate, where Democrats hold the majority.
- Compromises may be necessary to move the review process to FERC.
Implications
The implications of the pause and potential legislative changes remain uncertain. The impact on the LNG industry and related sectors will depend on the outcome of these deliberations.
