Organizations like the International Energy Agency (IEA), United Nations (UN), and World Bank and countries like Germany and even the energy-rich United States are all equally culpable, having championed a counter-intuitive definition of energy security, one that simultaneously ignores the realities of energy markets and rests solely on a rapid transition to renewables. Measured against Russia’s prolific energy weaponization and a sustained global demand rebound from the pandemic, western political and financial systems unquestionably fell short - ignoring and even contributing to the coming energy crisis. strategic interests that require immediate attention. In the meantime, however, Europe’s mistakes carry global supply-side repercussions and vulnerabilities for U.S. American LNG exports to Europe comprise 39% of all LNG exports as of July 2022, and recent months only demonstrate sustained growth in trade.Ī whole world beyond Europe also demands ever-increasing volumes of natural gas to power growth and security. LNG exports to Europe have increased by more than 2500%. The benefits of these transformations, particularly regarding destination clauses, would reach Ukraine, allowing neighboring countries to redirect volumes when Russia halted supplies in 2014.Īmerican LNG supplies would also prove critical in advancing trade parity - a key policy of Donald Trump’s Administration, evidenced by a 2018 U.S.-EU Summit. The shackles of destination and take-or-pay clauses were also broken, allowing for greater market liquidity, flexibility, and cooperation on energy security and market harmonization. The emergence of LNG in the European marketplace alone severed the legacy of oil-pegged natural gas contracts biased toward Russia. supplies against Russia’s historic use of energy as a geopolitical weapon, “freedom gas” becomes an attractive antidote. supplies as reliable, flexible, and price-competitive under long-term contracts.
However, after Russia annexed Crimea, Congress, as well as publications including The New York Times and The Wall Street Journal called for the United States to unleash its natural gas as a geopolitical tool in America’s arsenal.Įven at a snail’s pace, the comparative advantage of the United States emerged as many European countries viewed U.S. The course of these past eight years saw the United States not only become the world’s largest natural gas producer in 2014 but also the world’s largest exporter of liquefied natural gas (LNG) by the end of 2021.ĭeploying red tape as a cover for its climate agenda, the Obama Administration slow-walked LNG export approvals, particularly in the lead-up to Russia’s 2014 invasion of Ukraine. production topped 94.5 bcf/d, while consumption totaled 84 bcf/d. These states produced a staggering 34.5 billion cubic feet per day (bcf/d) combined in 2021 - nearly half of U.S.
Between 20, as a direct result of the shale revolution, Pennsylvania’s natural gas production levels increased by 1,231 percent, Ohio’s by 2,820 percent, and West Virginia’s by 940 percent. The Appalachian region provides a historic case study.
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