Bravo Biden Administration:
My Administration is announcing today a temporary pause on pending decisions of Liquefied Natural Gas exports – with the exception of unanticipated and immediate national security emergencies.
During this period, we will take a hard look at the impacts of LNG exports on energy costs, America’s energy security, and our environment. This pause on new LNG approvals sees the climate crisis for what it is: the existential threat of our time.
I put it to you that this has more to do with gas supply than it does with climate change.
US gas has seemed inexhaustible for the past decade thanks to domestic reservation keeping the price low and gas output being largely an afterthought in the shale oil fracking.
Ungodly quantities have simply been flared without sufficient pipelines to transport it.
But there is an end, and respected voices such as Art Berman can see it:
The US does not want to repeat Australia’s catastrophic mistake of exporting too much gas and leaving itself short.
That would significantly derail its manufacturing recovery and decarbonisation path, which sounds familiar.
This piles bad upon lousy news for the gas outlook Downunder.
The US will still roughly double its exports over the next few years, and the glut will crash prices, but beyond 2030, it means higher than otherwise prices for those planning to rely upon gas imports.
Such as gas-rich, brainless Australia.
To wit, European gas prices remain materially cheaper than Australian today. The net-bank AUD price for NWEM is $11Gj, whereas Australians are paying nearly $12Gj:
Power prices at home are still racing higher with seasonal heat and stupid gas prices supporting weak wind:
If the home of freewheeling capitalism uses domestic reservation to cap its energy prices, why can’t Australia?
Albanese Government cowardice.