FIRST ON FOX: A top House Republican is warning that President Biden’s recent moratorium on liquefied natural gas (LNG) exports over climate concerns could hit U.S. small businesses the hardest.
House Small Business Committee Chairman Roger Williams, R-Texas, penned a letter Wednesday morning to President Biden and Energy Secretary Jennifer Granholm, warning of the “detrimental impacts” the policy will have on small businesses, the U.S. economy broadly and America’s strategic interests worldwide. In the letter, Williams demanded answers to a series of questions about the administration’s actions.
“Currently over 90 percent of oil and natural gas extractors are small businesses, and the Committee seeks a deeper explanation of this decision and its impacts on those businesses and U.S. strategic priorities,” Williams wrote to Biden and Granholm, adding that the administration appears intent on making it hard for small fossil fuel operators to “to compete and earn a living.”
“This export decision will force the U.S. to turn its back on our European allies and push them back into the hands of the Russian Federation,” the Small Business Committee chair continued. “This not only works against the U.S.’ strategic interests, but creates challenges for businesses, large and small, that had planned to export their products to Europe and Asia over the coming years.”
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Williams added that small U.S. natural gas producers have taken advantage of the opportunity to replace Russian gas in global markets. In the aftermath of Russia’s invasion of Ukraine two years ago, U.S. LNG largely filled the void left by Russian natural gas as U.S. allies sought to wean off Russian exports and punish the nation’s economy, a plan Biden endorsed at the time.
In December 2023, more than 87% of U.S. LNG exports went to Europe, U.K., or Asian markets.
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“It is important for agencies to examine small businesses’ interests — which make up 99.9 percent of all businesses in the U.S. — when making such an impactful decision. America’s small businesses deserve to have their voices heard and considered,” Williams wrote.
In January, Biden ordered the Department of Energy (DOE) to pause pending permits for LNG export facilities while federal officials conduct a rigorous environmental review assessing the projects’ carbon emissions, which could take more than a year to complete. The action is a major victory for activists who have loudly called for such a move, which they said would help combat global warming.
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The president confirmed the pause on LNG permitting was a part of his sweeping climate agenda, adding the action “sees the climate crisis for what it is: the existential threat of our time.” He also took aim at “MAGA Republicans” for willfully denying the “urgency of the climate crisis.”
However, the move was blasted by industry groups, former federal officials and bipartisan lawmakers, who noted energy exports, in addition to aiding allies in Europe and Asia, bolster domestic energy production and boost the U.S. economy.
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Fossil fuel industry groups recently cited research indicating that LNG exports could add as much as $73 billion to the U.S. economy by 2040, create 453,000 American jobs and increase U.S. purchasing power by $30 billion.
Critics of Biden’s action also argued it would not help the environment since global consumers will, as a result, likely revert to greater reliance on coal or Russian gas, both of which are dirtier than U.S. LNG.
“Holding exports of American LNG, which meet U.S. environmental standards, in favor of European and Asian coal or Russian LNG, is likely to harm the environment more than simply approving these exports,” Williams wrote.
While it remains unclear which proposed projects the action will affect, a senior administration official said at least two have a larger capacity and two have a smaller capacity. Another official added that the pause implemented Friday will only impact projects that have gone through FERC’s lengthy approval process and are ripe for DOE approval.
According to federal data, there are 11 projects that have been green-lit by FERC but are not yet under construction. An additional four projects are pending before FERC and two are in the pre-filing stage. Those six projects would not be impacted by the pause since they are not before the DOE yet but would be impacted if approved by FERC.
The White House and DOE did not immediately respond to a request for comment.
