Mike Sommers, Chief Executive Officer (CEO) of the American Petroleum Institute (API) sounded alarm bells over President Joseph Biden’s mulled slowdown of liquefied natural gas (LNG) project approvals.
Reports indicate the Biden administration is re-evaluating the climate criteria it uses to approve new liquefied natural gas export facilities, threatening to stall pending projects as the 2024 election nears.
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“Halting U.S. LNG approvals would put our allies at risk. This should not be controversial,” Sommers said, according to Reuters. Europe had been locked in an energy crisis following the Russia-Ukraine war and had left countries scrambling to find alternative suppliers to fill the vacuum. Sommers is of the view that U.S. LNG exports help reduce global emissions by displacing coal overseas.
Sommers, voicing his concerns on Biden’s energy stance with CNN, hinted at a “regulatory onslaught” on drilling on public lands and public waters. He argued most federal production today was made possible by leases approved by prior administrations.
CNN said “record-shattering oil production” has occurred under Biden’s watch, despite his administration saying it wanted to ramp up the energy transition from dirty fossil fuels.
“If we do not get the policies right, and if we do not eliminate this red tape, we are really sowing the seeds for the next energy crisis,” Sommers underscored. “This administration has gone backwards on energy policy. You are not seeing it at the pump right now, but you are going to see it in the future if we do not reverse course.”
Biden’s energy stance appears to be stemming from environmentalist pressure, exacerbated by the upcoming polls.
But the pressure is not only affecting the U.S.
There has been an increased global push from anti-oil environmentalists for an end to oil projects to combat climate change and ensure a smooth transition to renewable energy sources. But with the energy crisis and high demand for LNG, this is a hard task.
Countries like Guyana and Norway have made their positions clear – oil production will continue to meet global energy demands. In Guyana’s case, oil production will bring billions in revenues to be used to transform its economy and provide a better quality of life for its people.
