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Just a political move to garner support leading up to the Presidential election.
It’s how geopolitical observer Peter Zeihan looks at President Biden’s freeze or moratorium on building any new ports to allow overseas shipments of LNG. It’s certainly a hot-button issue in Oklahoma and other oil producing states as Representatives and Senators along with energy group leaders have condemned the move as not only harming our allies in Europe but doing nothing to help the climate.
Here’s how Zeihan commented on the move:
The Greens are celebrating and the oil industry is kicking and screaming over the Biden administration’s decision to pause the review process of liquefied natural gas (LNG) exports. However, this decision’s actual impact is microscopic. This pause is very limited. It has no impact upon facilities already in operation, under construction, or even those already permitted. It only impacts facilities still at the eye-gleam stage. While the “pause” may impact some firms (very) long-term plans, there’s nothing tangible as of yet.
Natural gas has an interesting foothold in the energy space, as it is a cleaner alternative to coal and is highly compatible with green energy sources like wind and solar. This means that natural gas will likely serve as the complimentary energy source of the future, which will be a large pill for the Greens to swallow.
The Biden administration’s move is temporary, limited in impact and scope, and is just a political move to garner support leading up to the election. Think of this kind of like a politician’s wet dream – making some of your constituents happy without actually doing anything.
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