A new study reveals that the Biden-Harris administration’s ban on LNG export permits could cost America nearly one million jobs and over $215 billion in economic growth by 2044.
At a Glance
- Biden’s LNG export permit pause could lead to 900,000 job losses and $216 billion economic decline by 2044
- Current U.S. LNG exports support over 220,000 jobs and contribute $43.8 billion to the economy
- Federal judge recently blocked the Biden administration’s ban
- Critics argue the ban could increase reliance on energy from adversarial nations
- Congress actively responding with hearings and proposed legislation to lift restrictions
Economic Impact of Biden’s LNG Export Pause
The Biden administration’s recent pause on new liquefied natural gas (LNG) export permits has sparked intense debate about America’s energy future and economic stability. A groundbreaking study projects that if this policy persists, it could result in the loss of nearly one million American jobs and over $215 billion in economic growth by 2044. This decision raises critical questions about our nation’s role in the global energy market and its impact on American workers.
🚨 A new study from @ShopFloorNAM outlines what's at risk with the Biden-Harris de facto LNG export ban:
❌ Up to 900,000 American jobs
❌ Up to $216B potentially lost in U.S. GDP contributions
The administration must IMMEDIATELY end its LNG export ban.https://t.co/x7zngZ97uf
— Energy and Commerce Committee (@HouseCommerce) October 16, 2024
Currently, U.S. LNG exports support 222,450 jobs and contribute $23.2 billion in labor income. Additionally, these exports add $43.8 billion of value to the American economy. The potential loss of these economic benefits has raised concerns among industry leaders and policymakers.
Legal Challenges and Congressional Response
The Biden administration’s decision has faced legal obstacles. A federal judge recently blocked the ban on new LNG exports, highlighting the legal challenges to the policy. This judicial intervention underscores the complexity of balancing environmental concerns with economic and energy security interests.
“Since their first day in office, President Biden and Vice President Harris have launched a unilateral assault on American oil and gas, choking the lifeblood of our economy, crushing consumers with high energy costs, and sending oil production overseas – enriching our adversaries like Russia and China,” said Chairman Arrington in a July statement.
Congress has been actively responding to the administration’s decision. Hearings have been held by both the House and Senate to discuss the implications of the moratorium. Additionally, proposed legislation, HR 7176, aims to lift restrictions on LNG imports and exports and negate the new “public interest” test introduced by the administration.
Make no mistake: the Biden-Harris admin.'s indefinite pause on LNG exports is a de facto ban.
Some eye-popping stats from @ShopFloorNAM’s latest study:
→ Up to 900,000 U.S. jobs at risk
→ Up to $216 billion potentially lost in U.S. GDP contributions https://t.co/pURKrUsBLg— Rep. Bob Latta (@boblatta) October 16, 2024
National Security and Environmental Concerns
Critics of the ban argue that it could increase reliance on energy from adversarial nations, posing national security risks. The study warns that restricting LNG exports could lead to dependence on dirtier energy sources from countries that may not align with U.S. interests.
“Our new research makes clear that clamping down on LNG exports jeopardizes jobs and economic growth. It also forces other nations to rely on dirtier alternatives from adversarial nations like Russia, which exacerbates national security risks,” Timmons explained. “By expanding LNG export facilities, increasing natural gas production, and supporting clean energy initiatives, we can power manufacturing, improve the quality of life, boost our security and reduce emissions across the globe.”
However, the Biden administration maintains that the pause is necessary to allow for a comprehensive environmental review of new LNG projects’ impact on carbon emissions. This decision reflects the ongoing debate over balancing economic growth, energy leadership, and environmental concerns in U.S. energy policy.
The Biden administration’s ill-advised decision to stop LNG exports could cost Americans significantly. Manufacturers welcome calls from @HouseCommerce urging the Biden administration to reverse course on a policy that puts jobs and economic growth at risk. https://t.co/OHuvkwiPpv
— Jay Timmons (@JayTimmonsNAM) October 16, 2024
Uncertain Future for U.S. LNG Market
The duration of the pause and its long-term effects on the U.S. LNG market remain uncertain. The decision could potentially impact over a dozen LNG projects and discourage future investments. By 2028, the U.S. is expected to have significant LNG export capacity, but the current policy pause may affect this projection.
As the debate continues, the energy industry, policymakers, and environmental groups will closely watch the developments surrounding this crucial decision that could shape America’s energy future and economic landscape for years to come.
Sources:
- Study Highlights Damage of Biden-Harris Proposed LNG Ban
- Biden admin’s LNG export ban puts nearly 1 million jobs at risk: study
- Biden admin’s LNG export ban puts nearly 1 million jobs at risk: study
- Consequences of the Pause for US LNG
- Biden’s LNG Export Permit Moratorium: Is It Really in the ”Public’s Interest?”
- US ELECTIONS: US LNG sector to navigate uncertainties with Harris or Trump
