Myth vs. Fact: Biden's LNG Export Ban
President Biden’s liquefied natural gas (LNG) export ban puts politics over people. It jeopardizes the American economy and our energy security. It’s a gift to Russian President Vladimir Putin that will harm our European allies. Here is the truth about Biden’s LNG export ban:
MYTH: DOE needs to ban LNG export permits and conduct more studies.
FACT: The Department of Energy (DOE) has already commissioned five studies to examine the effects of U.S. LNG exports. The results unanimously demonstrate the benefits to the U.S. economy and domestic natural gas prices. DOE has also issued two studies that examined the life cycle greenhouse gas impacts of U.S. LNG exports showing strong environmental benefits. Notably, the two prior presidential administrations conducted these studies without blocking export permits.
MYTH: Banning American LNG Exports is good for the environment.
FACT: Clean natural gas is a major reason why the U.S. has reduced emissions more than any other nation. DOE has already studied the climate impacts of U.S. LNG exports, and their reports clearly show the environmental benefits. According to DOE, U.S. LNG exports are also 41% cleaner than Russian natural gas delivered to Europe.
MYTH: The decision to ban U.S. LNG export permits will not impact our ability to supply our allies.
FACT: The indefinite ban has already disrupted global energy markets and discouraged our allies in Europe who are desperately seeking to eliminate their dependence on Russian natural gas. In December 2023, more than 87% of U.S. LNG exports went to the European Union, United Kingdom, or Asian markets. Furthermore, U.S. LNG helped reduce natural gas prices in Europe by over 83% from 2022 levels following Russia’s invasion of Ukraine. Our European allies are rapidly constructing new LNG import facilities to wean themselves off of Russian natural gas. The decision to ban exports is sending the signal that America is not a dependable trading partner and undercuts our efforts to help Europe.
MYTH: Banning American LNG Exports will lower domestic energy prices.
FACT: Domestic natural gas prices are lower and more stable with free trade and open markets. The decision to ban exports creates uncertainty and discourages investments that would otherwise create jobs and expand the supply of natural gas. Banning LNG exports will actually mean higher prices at home for Americans. We need more American energy production to lower prices—not President Biden’s export ban.
MYTH: Banning American LNG exports will be good for the economy.
FACT: According to the American Petroleum Institute, increasing LNG exports could add as much as $73 billion to the U.S. economy and upwards of 453,000 American jobs by 2040. Removing restrictions on LNG will allow the U.S. to export more and encourage domestic production, which will reduce American energy supply vulnerabilities. Increasing LNG exports will also encourage investments in other industries, like manufacturing, which will help ensure we beat China.
Tune in tomorrow at 10:00AM for our Energy, Climate, and Grid Security Subcommittee hearing titled “Politics Over People: How Biden’s LNG Export Ban Threatens America’s Energy and Economic Security.”