Chairman Williams Writes to President Biden and Secretary Granholm Regarding New LNG Decision

Summary

A February 28, 2024 release in which Congressman Roger Williams (R-TX), Chairman of the House Committee on Small Business, writes to President Biden and Secretary of Energy Jennifer Granholm about the decision to indefinitely pause export approvals for newly constructed Liquified Natural Gas (LNG) export terminals. The excerpted letter states that the Committee expresses deep confusion and concern about the decision and that over 90 percent of oil and natural gas extractors are small businesses. It states that by 2040 LNG exports are expected to contribute $73 billion to the economy. The letter also says it is unclear what environmental benefit the Department of Energy believes the rule will have.

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Chairman Williams Writes to President Biden and Secretary Granholm Regarding New LNG Decision

February 28, 2024

WASHINGTON, D.C. – Today, Congressman Roger Williams (R-TX), Chairman of the House Committee on Small Business, wrote to President Biden and Secretary of Energy Jennifer Granholm regarding the Administration’s decision to indefinitely pause export approvals for newly constructed Liquified Natural Gas (LNG) export terminals.

The Committee is concerned that the Administration has not considered America’s – or our small businesses’ – best interests. In response to this decision, Qatar is moving to fill the void and expand its LNG export capacity. As 90% of oil and gas extractors are small businesses, this will ultimately limit opportunities for them. Moreover, the deciding factor in this decision was an environmental one, yet it is completely unclear what environmental benefit the Department of Energy believes the rule will have.

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Read the full letter here.

Read excerpts from the letter below:

“The Committee on Small Business writes to express its deep confusion and concern regarding the Department of Energy’s (DOE) decision to indefinitely pause export approvals for newly constructed Liquified Natural Gas (LNG) export terminals. Delaying the approval of important LNG exports will have detrimental impacts not only on small businesses, but on the U.S. economy and its strategic interests worldwide. In response, Qatar announced it would expand its LNG export capacity, attempting to fill the void left by the Biden Administration and limiting opportunities for U.S. small businesses. Currently over 90 percent of oil and natural gas extractors are small businesses, and the Committee seeks a deeper explanation of this decision and its impacts on those businesses and U.S. strategic priorities.

“Natural gas is a growing and essential part of the American economy, making up most of electrical production in the U.S. Over the last seven years, the U.S. has worked to improve its ability to export this natural gas as LNG—by 2040 these exports are expected to contribute $73 billion to the economy and supply nearly half a million jobs. This decision upends years of business planning and prohibits the natural gas industry from continuing its essential growth. Taken with other actions by the Biden Administration, such as the Rice’s Whale rule, it seems the Administration is set on making it increasingly difficult for small oil and gas operators, particularly in the Gulf of Mexico region, to compete and earn a living.

“Additionally, U.S. LNG exports to Europe increased by 141 percent in the first year of the Russo-Ukrainian war, as European countries shifted away from relying on Russian natural gas. This export decision will force the U.S. to turn its back on our European allies and push them back into the hands of the Russian Federation. This not only works against the U.S.’ strategic interests, but creates challenges for businesses, large and small, that had planned to export their products to Europe and Asia over the coming years. Global opposition to Russia has provided small U.S. natural gas producers an opportunity to replace Russian gas in foreign supply chains. Limiting U.S. exports will reduce these opportunities for small businesses and undermines America’s standing in the eyes of our allies.

“Lastly, though it is the crux of the reasoning behind the decision, it is unclear what environmental benefit the DOE believes this rule will have. Germany, for example, likely does not have sufficient gas or renewable energy to replace the U.S. LNG it would be expecting, but has substantial coal reserves domestically that it will likely be forced to use. Additionally, the failure to export sufficient amounts of American LNG will drive countries toward Russian LNG, which has far fewer emissions controls, making it far more harmful to the environment. This decision harms American industry without any clear environmental benefit or supporting reasoning. Holding exports of American LNG, which meet U.S. environmental standards, in favor of European and Asian coal or Russian LNG, is likely to harm the environment more than simply approving these exports.”

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