Biden’s pause on new LNG export terminals bad for Pennsylvania
Pennsylvania stands at the forefront of the American natural gas boom, courtesy of its vast Marcellus shale reserves. This natural resource has been a cornerstone of the state’s economic resurgence, fostering job creation, stimulating investment and bolstering local economies.
As the Keystone State has led the way in championing this abundant, relatively clean fuel source, America as a whole has benefited enormously.
The American Gas Association notes that almost 187 million Americans use natural gas, and the industry supports more than 4 million jobs throughout the country. Closer to home, Pennsylvania’s natural gas industry employs 72,000 of our fellow residents.
However, the full potential of Pennsylvania’s natural gas resources extends beyond domestic consumption. Liquified natural gas (LNG) exports represent a significant opportunity to amplify this positive impact by tapping into burgeoning global energy markets and providing additional economic impact in Pennsylvania.
A single new LNG could produce roughly $600 billion in revenue over its lifespan, not only creating jobs directly, but inducing important employment spillover effects that would support secondary jobs in steel manufacturing and construction.
Unfortunately, President Joe Biden, apparently under pressure from left-wing billionaire donors and TikTok influencers, wants to put an end to all of that.
His recent proposal to pause work on any new LNG export terminals would not only prevent Pennsylvania from reaching its full potential as an energy producing state, but it would also lead to higher energy costs and jeopardize national security in the process.
Exports have played a significant role in encouraging new projects, which in turn provides market-based incentives for lower domestic fuel prices. Last year, U.S. LNG exports led to recordbreaking domestic natural gas production as well as a 62% yearover-year decrease in domestic fuel prices.
Further, given the necessity for Europe to find alternative suppliers to Russia in the wake of the Ukraine conflict, U.S. natural gas exports were on track to expand.
A recent study estimated that meeting the Biden administration’s promise to supply Europe with U.S. LNG from 2025 to 2040 would support an average of 71,500 jobs each year, contributing over that period a total of $46 billion to the U.S. economy.
A new statewide poll commissioned by the Pennsylvania Energy Infrastructure Alliance and released last month demonstrated that a full 58% of Pennsylvania voters opposed an LNG export ban after learning about the potential impacts on employment and the state economy.
Consequently, Pennsylvania’s congressional delegation knows which way the wind is blowing.
In a joint statement, Pennsylvania’s Democratic senators, John Fetterman and Bob Casey Jr., announced their intention to push for a reversal on the LNG export ban. In their words, “this industry has created good-paying energy jobs in towns and communities across the Commonwealth and has played a critical role in promoting U.S. energy independence.”
Similarly, Gov. Josh Shapiro, also a Democrat, has broken with the Biden administration and expressed in an interview with Bloomberg that he hoped that the “pause is limited and that [the Biden administration’s] focus of whatever analysis they’re going to do is centered around making sure we create jobs in the energy space in Pennsylvania.”
More Pennsylvania Democrats should fall into line to protect their constituents. For example, Pennsylvania Reps. Chris Deluzio and Susan Wild have spoken out against Biden’s decision, but failed to join the Republicans representing Pennsylvania in the House of Representatives who voted unanimously with nine other Democrats to roll back the ban through the Unlocking our Domestic LNG Potential Act.
Energy is shaping up to be a major issue on the ballot for Pennsylvanians in 2024 and voters are clearly lining up to defend American energy independence and an industry that is vital to the Keystone State’s economy. Politicians should take heed and avoid prioritizing the expensive values of coastal elites and climate lobbyists over the livelihoods of hard working Pennsylvanians.
Earl Baker, a Navy veteran, served previously in the Pennsylvania Senate, representing the 19th District. Prior to that he was a three term Chester County commissioner. He chaired the Labor and Industry Committee in the Senate and he writes on business topics.
He is the recipient of a Lifetime Achievement Award of the
Chester County Chamber.