How LNG Exports Threaten Energy Security

Source: How LNG Exports Threaten Energy Security  by Amy Westervelt

In the wake of the Biden Administration’s announcement that it will temporarily pause approvals of new liquefied natural gas (LNG) export terminals, Mike Sommers, president of the American Petroleum Institute, has shown up on everything from Fox News to MSNBC warning that this minimal step—which is both temporary and only affects new export terminals, not operational terminals or those already permitted—will bring with it not only a spike in prices for American consumers but a major threat to energy security is the latest version of the industry’s oldest story, the one it returns to time and again. There are lots of variations on it, but the gist is basically: American fossil fuel production keeps America safe and bills affordable.

It’s extremely effective because, like all good propaganda, there’s a kernel of truth to it. Domestic energy sources do increase security and prosperity. But for this narrative to work today it has to ignore the fact that renewable energy is also a domestic source, that this particular energy source comes with more danger than security given its climate impacts, and that exports mess with the energy security math considerably. It’s particularly bizarre as a way to talk about the impact of Liquefied Natural Gas (LNG) export terminals. In fact the increase in the volume of LNG being exported from the U.S. since the export ban was lifted in 2015 (on the heels of relentless lobbying from the industry, which was desperate to turn the fracking glut into profit) has made energy availability and pricing more volatile for Americans.

It’s clear in the data. When the Freeport LNG plant in Texas exploded, for example, gas prices shot up overseas but they dropped domestically because all of a sudden that big chunk of gas that would normally have been exported from Freeport was suddenly available domestically. Alternatively, when winter storms take regional LNG plants offline and freeze wellheads driving domestic production down unexpectedly, domestic prices spike dramatically because there’s no readily available replacement thanks both to the country’s reliance on gas and to the industry’s focus on more profitable exports over domestic energy security.