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liquefied natural gas
The DOE Finally Admits That LNG Isn’t a Get-Out-of-Climate-Crisis Free Card
A new report and statement won’t necessarily bind anything, but they do something almost as important: Finally a Democratic administration has been straightforward and honest about natural gas.
Dec 17, 2024
Late Monday afternoonPolitico, and then The New York Times, reported that the Department of Energy is ready to release the report of it’s nearly year-long study on LNG exports—a study mandated by a large-scale campaign (that very much included this newsletter) which persuaded U.S. President Joe Biden to halt new permits for new terminals along the Gulf of Mexico.
The report, and the equally important statement that came with it, won’t necessarily bind anything—it may complicate somewhat the Trump administration’s plans to approve new export terminals, but probably not fatally. But it does something almost as important. Finally a Democratic administration has been straightforward and honest about natural gas. That may actually matter, both in the short and long-term.
The continued growth of gas exports was “neither sustainable nor advisable,” Granholm said.
The background here is that, ever since the onset of fracking in the ‘oughts, Democrats have embraced the surge in natural gas. The GOP was still in love with coal, but climate change concerns were making that uncomfortable for anyone this side of Joe Manchin (D-Flammable Black Rocks). Along came the sudden surge in natural gas, which allowed the Obama administration both a path toward reviving the post-financial-crisis economy, and a way to cut carbon emissions. If you doubt me, read almost any of former President Barack Obama’s State of the Union addresses, which each contain a paragraph-long paean to the fracking boom.
In 2013, for instance, he enthused:
We produce more natural gas than ever before—and nearly everyone’s energy bill is lower because of it. And over the last four years, our emissions of the dangerous carbon pollution that threatens our planet have actually fallen…
The natural gas boom has led to cleaner power and greater energy independence. We need to encourage that. And that’s why my administration will keep cutting red tape and speeding up new oil and gas permits.
The shift from coal to gas-fired power plants, which was basically the sum of Obama’s climate policy, dropped carbon emissions, something he (and the fossil fuel industry) boasted about endlessly. But the problem was physics: As Cornell professor Bob Howarth started noisily pointing out, carbon dioxide isn’t the only greenhouse gas. CH4, or methane, traps heat even more effectively, and Howarth and others insisted it was escaping into the atmosphere from fracking fields and pipelines in large enough quantity to cancel out the progress on carbon.
They won the scientific battle—study after study has now demonstrated that indeed leak rates are very high. But the political struggle was much harder: No one wanted to give up the idea that there was a pain-free way out of the climate dilemma.
There was so much natural gas in the Permian Basin that America couldn’t soak it up, and in the Trump years we started to export it—that quickly grew to the point where America was the largest source of gas in the world. Both the Biden and Trump administrations approved one export terminal after another, over the outcry of local residents along the Louisiana and Texas coasts who had to deal with these monstrosities. It finally reached the point where environmentalists had to make a stand, and that’s what happened in the fall of 2023—after another Howarth study, this one demonstrating that so much methane leaked from the giant LNG carriers that it was worse than exporting coal.
Hence the pause, and hence the angry outcry from the oil industry (which worked harder than ever to elect a Republican in November), and hence today’s report. The language is truly strong: Energy Secretary Jennifer Granholm, in her letter that accompanies the report, stresses that it would be bad news for American consumers who still depend on gas (supply and demand being what it is). But the more important part is what she says about natural gas and climate. According to the Times, she says that any few facilities should face “rigorous question”
“especially in a world that needs to quickly reduce greenhouse gas emissions.” Under a scenario in which more than the current level of gas exports was approved, the report finds that the additional emissions would be 1.5 gigatons per year by 2050. That’s about a quarter of annual emissions generated by the United States, the world’s second-biggest polluter.
The fossil fuel industry always insists that LNG exports will replace coal, but crucially Granholm and the report made clear that’s not true.
She noted that the study found increased LNG exports would displace more wind, solar, and other renewable energy than coal. The study modeled five scenarios, and in every one, global greenhouse gases were projected to rise, even when researchers assumed aggressive use of technologies to capture and store carbon emissions.
This, in turn, sends a signal to Malaysia and Vietnam and the other Asian countries that would be the main recipients of gas from new terminals. I am guardedly hopeful that the year’s delay—which allowed solar and windpower to drop in price and gain in momentum—may be enough to convince those nations that they don’t want to sign up for 40 years of dependency on imported gas. I sure hope so, in part because of the heroes that led this fight—people like Roishetta Ozane who are defending not just the whole planet but their particular part of it.
The continued growth of gas exports was “neither sustainable nor advisable,” Granholm said. That’s the closest that prominent American politicians have come to telling the truth about the most important component of the climate crisis. If Vice President Kamala Harris had won the election, this might have meant a real sea change. In our current reality it’s at least honest, and honesty is a lot better than its opposite.
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'The People Always Pay': Report Details How LNG Tax Breaks Harm Gulf Communities
"These deals essentially pay industry to inflict more suffering on already climate-ravaged communities," said one local opponent of efforts to further expand gas exports in the region.
Dec 02, 2024
How do local communities lose out when governments invest in fossil fuel facilities instead of community needs?
That's the question at the heart of a new Sierra Club report released Monday, titled "The People Always Pay: Tax Breaks Force Gulf Communities to Subsidize the LNG Industry"—which details the extent to which the export market for liquefied natural gas, or LNG, benefits from billions of dollars in tax breaks in Louisiana and Texas—revenue that could be invested in public infrastructure, schools, and other priorities.
In the past decade, after an export ban was lifted by the Obama administration in 2015, the United States has shifted from an importer to a mass exporter of LNG, which a recent Cornell University study revealed has worse impacts than coal. Critics warn that investment in LNG causes environmental harm and hampers the transition to a green economy. Export terminal sites are concentrated along the Gulf Coast, primarily impacting impoverished coastal communities in Louisiana and Texas, according to the Sierra Club's report.
"The immense scale of tax breaks granted to billion-dollar LNG projects—millions of dollars per job—is mind-blowing. These deals essentially pay industry to inflict more suffering on already climate-ravaged communities by polluting the air and water while depriving Gulf Coast communities of vital revenue for schools, infrastructure, healthcare, emergency services, coastal restoration and protection," said James Hiatt, founder of For a Better Bayou and a resident of Calcasieu Parish in Louisiana, who is featured in the report.
The report relies on interviews with community members and takes a close look at the primary tax abatement programs that LNG export projects have benefited from, respectively.
Under two Louisiana tax break programs—the Industrial Tax Exemption Program (ITEP) and another called Quality Jobs—nine operating, proposed, or under-construction LNG export terminals have been provided $21.6 billion. In Cameron Parish, for example, home to Cheniere Energy's Sabine Pass LNG facility, the company is set to receive $4.9 billion in ITEP subsidies between 2012 and 2040, according to the report. In total, Cameron Parish residents are set to lose out on $14.9 billion in revenue from 2012-2040 due to ITEP subsidies for various LNG export terminals.
That investment in fossil fuel facilities translates to a lost $3.8 billion that could go towards schools and another $2.4 billion that could go towards health services, according to the authors of the report.
The report also details how bolstering the LNG market has adversely impacted the local economy.
For example, for Cameron Parish and nearby Calcasieu Parish, the rapid development of petrochemical facilities in the area has increased ship traffic. The Port of Cameron was once the country's largest producer of seafood, according to the report, but dredging and erosion stemming from ship traffic has made it hard for aquatic life to thrive: "While Cameron Parish had a fleet of 250 fishing vessels in 2005, nowadays, only a few dozen remain and some fishermen claim to see only 12 to 15 people working on the water every day, with others forced to supplement their income with additional jobs."
The report highlights that a grassroots organization in Louisiana found that ITEP applications from 1998 to 2017 pledged over 121,000 new jobs, but that the companies actually experienced a net loss of over 26,500 jobs.
The impact on communities is not just economic. According to the report, in Texas' Golden Triangle, a highly industrialized petrochemical corridor that includes the cities of Port Arthur, Beaumont, and Orange, residents breathe in polluting vapors that increase potential health harms.
"Among other pollutants, refineries produce benzene, a carcinogen that can result in leukemia or severe bone marrow damage. On average, an estimated one in 5,000 people in the Golden Triangle are at an incremental lifetime cancer risk, despite the EPA’s upper limit of acceptable cancer risk being one in 10,000," the report states.
Given the sizable tax exemptions in both Louisiana and Texas pledged for projects that are not yet up and running—in addition to the environmental degradation that is guaranteed with further expansion—the Sierra Club argues that making sure they are never built is "exactly what is necessary to avert the worst of the climate crisis."
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As Biden Adviser Speaks at COP29, Green Groups Say Act Before Trump Takeover
"President Joe Biden must reject all pending LNG export permits and stop the expansion of fossil fuels."
Nov 11, 2024
As the U.S. senior adviser to the president for international climate policy addressed the United Nations summit in Azerbaijan on Monday, green groups urged the outgoing Democratic administration to do whatever it can to tackle the global crisis before Republicans seize control of the White House and likely both chambers of Congress.
"I want to address tonight a topic that is on everyone's mind—the U.S. election," John Podesta, President Joe Biden's adviser, told the crowd in Baku on the first day of the United Nations Climate Change Conference (COP29), less than a week after President-elect Donald Trump defeated Vice President Kamala Harris.
Although votes are still being counted, Republicans have secured a majority in the U.S. Senate and are on track to retain control of the House of Representatives—paving the way for Trump's plans to roll back the Biden-Harris administration's progress on the climate emergency and "drill, baby, drill," which would lead to a surge in planet-heating pollution.
"Podesta's speech must be followed by swift action to limit U.S. fossil fuel expansion and achieve a strong COP29 outcome."
"For those of us dedicated to climate action, last week's outcome in the United States is obviously bitterly disappointing," Podesta acknowledged, "particularly because of the unprecedented resources and ambition President Biden and Vice President Harris brought to the climate fight."
Noting that Biden pledged to halve emissions this decade, rejoined the Paris agreement, signed the Inflation Reduction Act (IRA) and the Bipartisan Infrastructure Law, and promised $11 billion in international climate funds, Podesta warned that "the next administration will try to take a U-turn and reverse much of this progress."
"As President Biden said in the Rose Garden last week, setbacks are unavoidable, but giving up is unforgivable. This is not the end of our fight for a cleaner, safer planet. Facts are still facts. Science is still science," he continued. "This fight is bigger than one election, one political cycle, in one country. This fight is bigger still."
"We can and will make real progress on the backs of our climate-committed states and cities, our innovators, our companies, and our citizens, especially young people, who understand more than most that climate change poses an existential threat that we cannot afford to ignore," he added. "Failure or apathy is simply not an option."
Responding to the envoy's remarks in a Monday statement, Collin Rees, United States program manager at Oil Change International, said that "if John Podesta and President Joe Biden are committed to doing everything possible to continue climate progress despite Donald Trump's reelection, this moment demands a bold agenda that goes beyond locking in clean energy gains and takes real action toward a just transition off fossil fuels."
"There is no shortage of critical work to be done before Biden leaves office," Rees argued. "Here at COP29, the United States must support a new, transformative global finance goal in which rich countries pay their fair share in high-quality, grant-based finance and work to submit a Paris-aligned nationally determined contribution committing to do its fair share of climate action and phase out fossil fuels."
In the United States, Rees argued, Biden must "finalize studies on the dangerous impacts" of new liquefied natural gas exports, "reject deadly projects like the Dakota Access oil pipeline and pending LNG facilities in the Gulf South," and urge Congress to block the latest attempt by outgoing Sen. Joe Manchin (I-W.Va.) "to destroy bedrock environmental protections."
Looking toward next week's Organization for Economic Cooperation and Development (OECD) meeting, Rees said that "Biden's administration must support a global agreement to end export credit finance for oil and gas projects, a process which could end tens of billions of dollars in international finance for fossil fuels every year. This agreement would limit the global climate damages Trump and his fossil fuel cronies are able to perpetrate."
"Podesta's speech must be followed by swift action to limit U.S. fossil fuel expansion and achieve a strong COP29 outcome," he stressed. Leaders at other climate organizations—who have often argued that Biden hasn't gone far enough to tackle the fossil fuel-driven crisis—issued similar demands on Monday.
Emphasizing that "climate diplomacy on a boiling planet doesn't stop for a climate denier," Ben Goloff, senior campaigner at the Center for Biological Diversity's Climate Law Institute, called on Biden officials to "use the next two months to set up a bulwark of protections and secure their climate legacy."
"Beyond urgently getting IRA money out the door, John Podesta must commit the U.S.'s fair share of global climate finance and announce an ambitious NDC climate target," Goloff said, referring to nationally determined contributions for the Paris agreement.
Biden, he added, "has to make good on last year's agreement to transition away from fossil fuels by rejecting pending mega-polluting project," and "should also act quickly to fill all federal judicial vacancies as a wall of defense to Trump's rampage of legal attacks."
Jamie Minden, acting executive director of the youth-led movement Zero Hour, also declared that "before Trump takes office, President Joe Biden must reject all pending LNG export permits and stop the expansion of fossil fuels."
"Our climate is on the brink of collapse, and it is sheer madness that politicians continue to expand and subsidize deadly fossil fuels," Minden said. "Young people are fighting for our planet because we are facing the worst consequences of the unrelenting greed of these selfish politicians."
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