President Donald Trump made a significant move on Monday by signing an executive order that rescinded former President Joe Biden’s policy pausing permitting of new gas export facilities. This decision, although symbolic, clearly indicates that the new administration intends to reject the findings of recent federal research warning about the potential consequences of increasing overseas sales on American prices.
Last January, Biden halted new federal permits for export terminals designed to ship liquefied natural gas (LNG) while the Department of Energy conducted a study on the impact of increasing shipments beyond historic levels. However, this policy only affected new applications, allowing existing LNG projects under construction to continue. As a result, the U.S. surpassed Qatar and Australia to become the world’s leading exporter of LNG by April.
A federal judge later halted Biden’s pause on LNG permits, and federal agencies resumed issuing permits for new LNG terminals in September. Last month, the Energy Department released its findings, which painted a concerning picture of the potential consequences of doubling LNG exports. The report highlighted that increased exports could lead to higher domestic prices and increased greenhouse gas emissions, particularly methane, a potent contributor to global warming.
Despite the research from the Energy Department’s career scientists, Trump’s decision to lift the LNG permitting pause suggests that his administration will not acknowledge these findings. Industry groups, such as the Industrial Energy Consumers of America, have called on Congress to maintain limits on LNG exports to protect affordability.
The Energy Department’s study, published on Dec. 17, is currently open for a 60-day comment period, giving the new administration the power to determine the fate of these findings. Chris Wright, Trump’s nominee to lead the Energy Department, dismissed concerns about rising prices from LNG exports during his Senate confirmation hearing, arguing that increased overseas sales would drive higher domestic production.
In a recent call with reporters, the American Petroleum Institute, the leading lobby for the oil and gas industry, listed eliminating the LNG pause as a top priority for the new administration. This decision sets the stage for continued debate and action on the future of American energy policy and its implications for both the domestic market and global climate.
