Prevent a European-Style Energy Disaster, Businesses Advise Biden

Leaders in the natural gas sector believe the United States can protect itself against future energy crises by encouraging, rather than hindering, additional natural gas production in the coming years.

High natural gas prices are causing a cost of living crisis in several European nations; governments have responded with tax cuts and are rushing to find more methods to lessen the load on consumers.

Rising Costs

The cost of gas has also grown in the United States over the previous year, increasing aggregate energy expenses. It has stayed lower than in Europe, where standard prices have at times been tenfold or more.

The biggest oil and gas advocacy groups warned President Biden on Thursday the United States might face comparable energy prices in the future “if we are incapable of continuing developing and upgrading our natural gas system.”

Since Biden assumed office, he has promptly halted new oil and gas leases on federal lands and nixed the Keystone XL crude pipeline.

Additionally, the Biden presidency failed to unequivocally confirm whether it supports long-term natural gas development. The climate envoy, John Kerry, stated natural gas could be a “bridge fuel” but the government would not build its infrastructure.

However, despite Biden’s efforts and overall stance on cutting back on fossil fuel use to fight climate change, US gas production has continued to rise for years.

According to Energy Information Administration data, from January 2010 to January 2020, gas output in the United States increased by more than 62%.

Between February 2021, the first full month of Biden’s presidency, and November, the most recent month for which statistics are collected, output increased by over 21%.

Imports have also been very small, compared to domestic output and consumption in recent years.

Figures released by the EIA on Friday show how much gas production in Europe has changed in the last ten years in the opposite direction.

Renewable Energy Sources

Between 2010 and 2020, natural gas output in the EU and the United Kingdom decreased by more than 50%, as governments shifted their focus to renewable energy sources.

Conversely, natural gas imports accounted for more than 80% of total gas supply to the European Union and the United Kingdom in 2020, up from more than 65% a decade earlier.

Russia, Norway, Northern Africa, and Azerbaijan have natural gas pipelines that bring it to the United States. Also, liquefied natural gas is brought in.

Cargo of liquefied natural gas from the United States, especially to Europe, has risen a lot in the last few months, making the US the world’s biggest exporter of gas as well.

Biden’s presidency is in the middle of a political push to find new gas sources for European partners because there are fears a Russian invasion of Ukraine could cut off pipelines to the area.

Biden and European Commission President Ursula von der Leyen have acknowledged LNG “can improve supply security in the short term, while enabling the shift to net-zero emissions.”

The presidency has yet to encourage large investments in domestic manufacturing that industry leaders are urging.