Natural Gas Producers Seek Answers from Harris in Battleground State – Reuters

By Jarrett Renshaw

ERIE, Pennsylvania – This week, energy producers in Pennsylvania urged Democratic presidential candidate Kamala Harris to clarify her stance on liquefied natural gas (LNG), a fuel that proponents consider clean, while climate activists view it as a significant contributor to global warming.

In January, President Joe Biden implemented a freeze on new LNG export permits to assess their environmental impact, a move intended to resonate with the party’s environmentally-conscious voters ahead of the election.

With Harris now facing off against Republican contender Donald Trump, who has pledged to lift the permit freeze immediately if elected, the pressure mounts. Should she triumph, Harris would need to navigate the pause and any new recommendations stemming from the review, which is anticipated to conclude after the November election.

Pennsylvania, crucial for both candidates, ranks as the second-largest natural gas producer in the U.S. The state’s natural gas is embedded in shale rock, necessitating fracking for extraction. "We need more details," stated Dave Callahan, president of the Marcellus Shale Coalition, whose members convened in northeastern Pennsylvania for an annual conference. Numerous executives in the natural gas and drilling sectors expressed uncertainty about Harris’s energy policy.

"I believe the public deserves to know her stance on these issues before the election, as they will be the ones affected," remarked Rob Boulware, director of stakeholder relations at Seneca Resources Company, a prominent Marcellus Shale producer.

A spokesperson for Harris’s campaign acknowledged the industry’s desire for clarity but indicated that details concerning her LNG strategy should align with the review’s findings.

"The Vice President believes decisions should be based on comprehensive economic and scientific data, including projections related to energy costs, security, environmental impact, and public health," the campaign representative noted.

Harris has opted for what her aides describe as "strategic ambiguity" regarding energy policy to maintain support from both environmental activists and moderate voters ahead of the election. Notably, she has shifted away from her previous position opposing a ban on oil and gas fracking on federal lands, a stance she held during the 2020 presidential campaign.

The U.S. has become the world’s leading producer of natural gas and achieved the status of the top LNG exporter in 2022, as Europe sought alternatives to Russian energy supplies following the invasion of Ukraine.

This shift has greatly benefited American natural gas companies. A recent federal court ruling blocked Biden’s halt on new LNG export permits, deeming the administration’s action an overreach. Nevertheless, the ruling did not mandate the issuance of new permits, and only one has been granted since.

Toby Rice, CEO of EQT, a significant natural gas producer, highlighted concerns during the coalition event about political decisions adversely affecting consumers. "How can we possess abundant energy resources, yet see energy bills rise by 35%?" he questioned, emphasizing how political factors have eclipsed market dynamics.

The rise in gas prices can primarily be attributed to increased global demand for U.S. natural gas due to the geopolitical landscape following Russia’s aggression. In June, U.S. producers exported 356.4 billion cubic feet of LNG, a significant increase from 109 billion cubic feet just four years earlier, with around 40% directed to European nations like Germany and Italy.

Looking ahead, North America’s LNG export capacity is expected to more than double by 2030, reaching over 24 billion cubic feet per day, according to projections. Currently, natural gas from Pennsylvania’s Marcellus Shale is transported to terminals on the Gulf Coast and Cove Point in Maryland for export. However, the industry hopes to establish an LNG export facility closer to Pennsylvania, particularly in the Philadelphia region.