API: “It’s Time to Lift the Pause on New LNG Export Permits”

WASHINGTON, December 17, 2024 – The American Petroleum Institute (API) today released the following statement from President and CEO Mike Sommers in response to the U.S. Department of Energy’s (DOE) study on the impacts of liquefied natural gas (LNG) exports.

“It’s time to lift the pause on new LNG export permits and restore American energy leadership around the world. After nearly a year of a politically motivated pause that has only weakened global energy security, it’s never been clearer that U.S. LNG is critical for meeting growing demand for affordable, reliable energy while supporting our allies overseas.” 

Multiple independent studies have proven the net benefits of continued LNG exports for strengthening the economy, driving climate progress and bolstering global energy security. 

Americans enjoy among the lowest residential natural gas prices in the world. Despite U.S. LNG exports reaching record highs in 2023, domestic prices declined by 62%, demonstrating the industry’s ability to meet rising global demand for natural gas while maintaining a well-supplied domestic market. Blocking needed natural gas infrastructure, including pipelines, will impede access to low-cost natural gas regardless of LNG export levels.

Exporting LNG to our allies continues to drive significant economic growth domestically while reducing the U.S. trade deficit. According to a new study from S&P Global, the U.S. LNG industry has contributed more than $400 billion to GDP over the past decade, supports roughly 275,000 jobs, and represents roughly $34 billion in exports. 

U.S. LNG exports have been essential for supporting global energy security amid a period of geopolitical turmoil. Following Russia’s invasion of Ukraine, U.S. LNG replaced more than 85% of the natural gas Europe previously imported from Russia. The ongoing permit pause sends a signal that the U.S. is an unreliable long-term trade partner. Recent studies show that both Europe and Asia potentially face long-term natural gas supply gaps that could threaten their energy security. 

Coal-to-gas switching is the main reason that the U.S. has led the world in reducing CO2 emissions over the past two decades. A recent study by Berkeley Research Group found the climate impact of U.S. LNG delivered to Europe and Asia is roughly 50% lower than that of coal in those regions. In Asia, demand for LNG is projected to double by 2050 according to Wood Mackenzie, and without resumed U.S. LNG export permits, countries in the region could be forced to turn to higher-emitting sources.

API represents all segments of America’s natural gas and oil industry, which supports nearly 11 million U.S. jobs and is backed by a growing grassroots movement of millions of Americans. Our approximately 600 members produce, process and distribute the majority of the nation’s energy, and participate in API Energy Excellence®, which is accelerating environmental and safety progress by fostering new technologies and transparent reporting. API was formed in 1919 as a standards-setting organization and has developed more than 800 standards to enhance operational and environmental safety, efficiency and sustainability.

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