The API declaration
Mike Sommers, president and CEO of the American Petroleum Institute (API) , issued a statement in response to recent reports that the Biden administration is proceeding with efforts to hinder progress on the construction of Liquefied Natural Gas (LNG) terminals in USA.
“This would be a win for Russia and a loss for American allies, American jobs, and global climate progress. No review is needed to understand the clear benefits of U.S. LNG in stabilizing global energy markets, supporting thousands of American jobs, and reducing emissions around the world by transitioning countries to cleaner fuels. This is nothing more than a broken promise to America’s allies, and it is time for the administration to stop playing politics with global energy security.”.
Liquefied Natural Gas in the US
The importance of American Liquefied Natural Gas (LNG) lies in its fundamental role in assisting Europe in replacing gas from Russia. If the administration moves forward with these measures, it would undermine President Biden’s own promise to supply approximately 5 billion cubic feet per day (Bcfd) of LNG through 2030 to Europe, with the goal of reducing its dependence on Russian gas. An analysis of this presidential promise reveals a possible economic impact on the US economy, which could translate into the creation of 71,500 jobs annually and a combined investment of $100 billion in energy infrastructure, as well as an additional increase in the Gross Domestic Product ( GDP) between 2025 and 2030.
In 2022, the United States exported more than 800 shipments of LNG to Europe, experiencing a significant increase of 141% compared to the previous year. A recent study highlights the likelihood that Europe will face upcoming shortages in natural gas supplies, posing a threat to its long-term energy security.
It is important to note that in the United States, natural gas prices remain among the lowest globally, according to data from the International Energy Agency (IEA). Although exports of Liquefied Natural Gas (LNG) from the United States reached unprecedented figures in 2023, domestic prices experienced a decrease of 62%, in parallel with the record increase in natural gas production in the country. This demonstrates the industry’s ability to respond to growing global demand for natural gas, while maintaining abundant domestic supply.
US LNG plays a crucial role in reducing global emissions by replacing higher-emitting fuels. The switch from coal to gas is the main reason why the United States has led the world in decreasing carbon dioxide (CO2) emissions over the past two decades.
Although global coal consumption continues to rise and is projected to reach another all-time high in 2023, with three-quarters of the tonnes consumed produced in China, India and Southeast Asia, LNG has the potential to replace coal. fuels with higher emissions, such as coal. This will allow these countries to advance their respective climate goals.
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Source: worldoil.com
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