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Energy groups join Pfluger’s LNG ban protest

October 29, 2024

Odessa American

by Bob Campbell

Congressman August Pfluger has broad support among West Texas oil and gas groups as well as in Washington in his effort to ferret out the U.S. Department of Energy’s real reasons for backing President Biden’s year-long ban of new liquefied natural export terminals.

The Permian Basin Petroleum, Texas Independent Producers & Royalty Owners and Texas Oil & Gas associations say the situation stinks of politics.

“Liquified natural gas is an incredible asset needed for American energy security,” PBPA President Ben Shepperd said. “Further as the second-largest natural gas-producing region in the United States, the Permian Basin’s oil and gas industry benefits from global markets for our products, which means the states of Texas and New Mexico also benefit from LNG having access to these markets.

“We greatly support Congressman Pfluger’s efforts seeking a transparent understanding of why the Department of Energy continues to hamper exports of LNG to our nation’s allies,” Shepperd said. “If this is more than just a political action, then the DOE should be able to provide answers to Congress’s questions.”

TIPRO President Ed Longanecker said the Biden administration’s delay of reasoning for the pause is causing a negative domino effect affecting not only the U.S. economy but also the nation’s commitment to its global allies that rely on the U.S. for energy during geopolitical uncertainties.

“As the largest natural gas-producing state Texas is directly impacted by the administration’s decisions,” Longanecker said. “Our natural gas producers have waited long enough and we deserve answers now.

”We greatly appreciate the leadership of Congressman Pfluger and other policy makers demanding action before more damage is done.”

In addition to the immediate economic consequences and job losses for Texans, TXOGA President Todd Staples said, the Biden administration’s decision to halt approvals of LNG export permits hamstrings America’s ability to meet the world’s ever-growing energy demands, bolsters hostile nations and sets back environmental progress around the world.

‘With so much uncertainty in the world, the need for reliable, responsibly produced energy from a stable trading partner has never been more crucial,” Staples said. “Texas is that trade partner and TXOGA applauds Congressman Pfluger and the signatories of the letter to Secretary Jennifer Granholm and the Department for Energy for shining a light on the essential role that LNG objectively plays in the success of our communities, the nation’s economy and energy security around the world.”

Pfluger said from Washington, D.C., that his letter to Granholm, signed by 44 fellow members of Congress, raises serious concerns about transparency and accountability within the DOE.

Representing the Permian Basin, the San Angelo Republican demanded answers regarding studies allegedly conducted by the DOE on the economic and environmental impacts of LNG, findings that, according to recent reports, may have been withheld from the public because they highlighted the positive impacts of U.S. LNG on the global energy landscape.

“Since President Biden announced an indefinite ban on LNG export permits to non-free trade agreement countries in January 2024, U.S. natural gas export projects have stalled,” Pfluger said. “This decision has not only delayed critical energy investments but has also led to diminished energy security for America and its allies.

“A federal court recently blocked the LNG export ban, underscoring the lack of legal and factual basis for such a measure and casting doubt on the administration’s justifications. The DOE’s lack of transparency is deeply troubling and has real-world implications for American energy security and global stability.

“The American public has the right to understand the rationale behind these actions and how they impact our economy, national security and environment.”

The letter seeks clarification on whether the DOE conducted or received LNG studies in 2023 and if so why its findings were not made public.

The lawmakers also question the administration’s decision to involve the Pacific Northwest National Laboratory in Richland, Wash., in its 2024 review, a move raising concerns about the politicization of LNG export research as the PNNL traditionally focuses on renewable energy rather than natural gas.