The Sun Bay Paper Page 25 January 14, 2022 - January 20, 2022 U.S. Natural Gas is Critical EXPIRES JAN 31, 2022 Cont. from pg 1 has enormous potential to impact both national and international security. The U.S. is set to become the world’s largest LNG exporter by the end of 2022, an impressive milestone for a nation that began exporting just six years ago. Calcasieu Pass and Sabine Pass Train 6, based in Louisiana and Texas respectively, will soon come online and export LNG to many nations. Poland is an ally on the front lines of the military confrontation with Russia. It is also committed to reducing its dependence on Russian gas. Poland will soon import over a third of its gas supply from the U.S., and no longer fear that Russia will shut off its energy supply as it has done in the past. Other European nations have also signed supply contracts with U.S. producers to diversify their gas supply. Fortunately, the U.S. is already moving in this direction. Gas has generated considerable income in 2021 for U.S. oil and gas producers. This positive trend will be necessary for a successful energy transition. Now is not the time to undermine this progress by restricting U.S. LNG exports. Providing our allies with an alternative to Russia and Qatar strengthens U.S. national security. Notably, the price of U.S. LNG can encourage lower prices from other gas producers. From a climate point of view, less U.S. LNG on the market means higher global prices and increased global use of coal plants to produce electricity. U.S. LNG exports influence geopolitics beyond Europe. The U.S. has recently become China’s secondlargest LNG supplier. Despite geopolitical tensions between Washington and Beijing, China has recently committed to a significant volume of long-term supply contracts of U.S. LNG, lowering the US trade deficit with China. Finally, U.S. LNG can reduce global carbon emissions – an important international and national security policy objective. A 2020 ICF International study examined U.S. LNG exports to Germany, China, and India and calculated the climate benefits. For these three countries, the study found that “using U.S. LNG or imported pipelined gas for electricity generation produces on average 50.5 percent lower GHG emissions than electricity from coal.” Therefore, the transition from coal to natural gas overseas provides a proven climate solution to meet energy demand while addressing the risks of climate change. Some disagree, but I believe that curtailing U.S. LNG exports would set back, not advance, the U.S.’s climate goals.- This process will not be easy: first, U.S. LNG exports may drive up domestic U.S. gas prices if supply and demand for gas do not synch carefully, depending on how energy markets respond to price changes. Second, producers, transporters, and owners of U.S. natural gas have a responsibility to develop plans for a low-carbon, clean energy future. Climate change is real. Renewable energy must play a more significant role in reducing carbon emissions. The public and shareholders alike believe the US private sector should be doing all it can to reduce carbon emissions and significantly minimize methane emissions. Fortunately, while the private sector has made progress in dealing with gas leaks, more can be done throughout the supply chain. The U.S. is blessed with abundant natural gas and oil. Soaring energy costs for our allies require policies that support – not hinder – the safe and responsible production, transportation, and export of American natural gas Richard D. Kauzlarich Real Clear Wire
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