Experts predict that the Biden administration's report could hinder Trump's plans to increase the use of domestic natural gas.
Before issuing new permits for natural gas exports, the DOE must determine if it aligns with the public's interest.
Experts predict that the Biden administration's report on the environmental effects of increasing LNG exports could hinder President-elect Trump's plans to promptly approve new licenses for the fuel.
The Department of Energy (DOE)'s assistant secretary for the Office of Fossil Energy and Carbon Management, Brad Crabtree, informed lawmakers last week that the report evaluating the economic and environmental implications of increasing U.S. exports of the fuel would be released by mid-December. The Natural Gas Act requires the DOE to assess whether exports align with the public's interest before issuing any new permits.
Experts have different opinions on the significance of the report. While some dismissed it, others believe it could be used by environmentalists to attack the Trump administration.
"According to Kevin Book, managing director at ClearView Energy Partners, the natural gas sector should expect support from the Trump administration, but the documentation must be flawless."
If the report published by the book highlights reasons against new natural gas permits, the incoming Trump administration may need to revise their study or interpretation to approve new permits. According to Book, the process could take anywhere from a few weeks to several months or even multiple quarters, depending on the content of the Biden administration's new study.
Jeff Kupfer, president of nonprofit ConservAmerica and former acting deputy secretary and chief operating officer at the DOE under the second George W. Bush administration, stated that he is a strong supporter of LNG exports. However, the report could hinder progress on new LNG export licenses due to the Trump team's need to respond to comments and the potential for the report to be used as ammunition by those who argue against LNG exports, even if the claims are unfounded.
Although other energy sector experts warned that the move could create legal obstacles for the Trump administration and delay new natural gas licensing, they believed there was little cause for concern.
"Trisha Curtis, CEO of PetroNerds and an economist at the American Energy Institute, stated that their last ditch effort to issue a study before the end of the year may face legal setbacks, similar to those experienced under the Biden administration. However, if they rush the study and have a two-month comment period, it may not stick, especially during the Trump administration."
The Biden administration temporarily halted the issuance of new natural gas export permits in January, prompting the Department of Energy (DOE) to review its current environmental impact analysis. This review is necessary to ensure that natural gas exports align with the public's interest, as mandated by the Natural Gas Act, which was enacted nearly 75 years ago.
According to Book, 80% of the liquefied natural gas market is composed of countries that do not have free trade agreements with the U.S.
Trump has indicated that he wants to lift the natural gas pause immediately in order to increase domestic energy production. This is one of several actions he plans to take to roll back the Biden administration's climate regulations. On his Truth Social platform on Tuesday, he wrote: "Any person or company investing ONE BILLION DOLLARS, OR MORE, in the United States of America, will receive fully expedited approvals and permits, including, but in no way limited to, all Environmental approvals. GET READY TO ROCK!!!"
"President Trump's re-election was a resounding victory, giving him a mandate to fulfill his campaign promises, such as lowering energy costs for consumers. When he takes office, Trump will make America energy dominant again, protect energy jobs, and reduce the cost of living for working families."
The DOE did not respond to Planet Chronicle Digital's request for comment by press time.
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