Texas Oil & Gas Association (TXOGA) President Todd Staples and TXOGA Chief Economist Dean Foreman, Ph.D., today both testified before the Texas House Select Committee on Protecting Texas LNG Exports’ hearing in Port Arthur, which focused on the Biden Administration’s recent decision to pause liquified natural gas (LNG) export permit approvals.
“We commend Speaker Phelan for recognizing the tremendously positive impact of LNG, and Chairman Patterson and the Committee for their leadership in convening this hearing to highlight the economic, environmental, and social fallout of the federal government’s suspension of LNG export permits,” said Staples. “In addition to the immediate negative economic consequences and job losses for Texans, this decision hamstrings our 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. Texas is that trade partner.”
Dr. Foreman highlighted that “Texas and Louisiana bear the brunt of short-sighted federal policies that jeopardize LNG export projects, representing potential investments of $200 billion across the value chain, including a projected 20% increase in Texas’ dry natural gas production. The reasons given for this pause—concerns about higher domestic natural gas prices, emissions, and community impacts—are clearly unfounded. U.S. LNG exports have responded to global demand, driving domestic innovation that enhances productivity and reduces consumer costs. LNG has replaced coal in power generation, emerging as a primary driver of emission reductions, and have catalyzed economic growth across the Gulf Coast. On all accounts, U.S. LNG exports have proven to be decisively beneficial.”
Since the Administration announced the LNG export permit pause in January, TXOGA has raised concerns about the action. TXOGA joined other trade associations in sending a letter to the U.S. Department of Energy, published a statement and an op-ed, and released an analysis by Dr. Foreman showing that U.S. LNG exports have not had any sustained and significant direct impact on U.S. natural gas prices and have, in fact, spurred production and productivity gains.
Staples concluded, “Irrefutable testimony was provided by a variety of witnesses of the many significant benefits of LNG exports and evidence provided of the adverse impact of the LNG suspension. We applaud these Texas leaders for shining a light on the essential role that LNG plays in the success of local communities, the Texas economy and energy security around the world.”
