The Biden-Harris administration’s ban on new permits for liquefied natural gas (LNG) exports threatens nearly one million jobs over the next two decades if the restriction remains in place, a new study finds.
The National Association of Manufacturers (NAM) conducted a study in partnership with PwC that was shared exclusively with FOX Business and found that between 515,960 and 901,250 jobs – as well as about $103.9 billion in labor income – would be threatened if the ban remains in place through 2044. The analysis used the Department of Energy’s outlook prior to the ban announcement to calculate its potential long-term impact.
The export ban would stifle the U.S. GDP by between $122.5 billion and $215.7 billion in 2044, while between $26.9 billion and $47.7 billion in tax and royalty revenues to federal, state and local governments would be at risk in 2044 if the permit pause persists, the study found.
“With an all-of-the-above energy strategy, we don’t have to choose between national security, economic growth, and environmental protection—they go hand in hand,” NAM President and CEO Jay Timmons told FOX Business. “Today’s research highlights the massive potential we unlock when we embrace American energy production.
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NAM’s study found that in 2023, U.S. LNG exports supported about 222,450 jobs and generated $23.2 billion in labor income. The LNG industry also contributed $43.8 billion to the U.S. GDP and LNG exports yielded $11 billion in tax and royalty revenues for federal, state and local governments.
“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.”
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“This study provides policymakers—present and future—a clear path to create jobs and hundreds of billions of dollars in economic growth by harnessing America’s abundant supply of LNG,” he added.
The Biden-Harris administration announced on January 26 that all new approvals of LNG exports to non-Free Trade Agreement countries would be halted immediately, although previously-approved projects were unaffected by the move.
US LED THE WORLD IN LIQUEFIED NATURAL GAS (LNG) EXPORTS IN 2023
The White House and Energy Department explained at the time that the pause would give federal officials an opportunity to conduct a rigorous environmental review to assess the impact of new LNG projects on carbon emissions – a process they said would take over a year to complete.
In July, a federal court granted a request made by more than a dozen states to put a temporary hold on the administration’s pause on new LNG export licenses. The preliminary injunction prevents the ban from taking effect while the case proceeds, though the Energy Department said at the time it disagrees with the ruling and would evaluate its next steps.
Last year, the U.S. led the world in LNG exports with over 86 million metric tons exported to customers abroad. Europe is the primary export destination of LNG shipped from the U.S., followed by Asia, according to LSEG data.
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