AUSTIN – Texas Oil & Gas Association (TXOGA) President Todd Staples today issued the following statement on the Biden Administration’s recent decision to pause approvals of liquified natural gas (LNG) export permits:
“As a state trade association representing the United States LNG value chain, TXOGA is deeply concerned that the Biden Administration, through the Department of Energy, is pausing the permitting approval process for U.S. LNG exports. This decision is a major mistake that puts American jobs and allies at risk and undermines the global progress made possible through increased use of natural gas.
“Reckless decisions like this squander our nation’s global energy leadership and force our allies to look to other nations, some of which are hostile to America, to meet their energy needs. It directly emboldens and strengthens America’s adversaries while hurting America. Other countries are already positioning to take advantage of this self-inflicted wound. It leads our nation in the wrong direction. We urge the Administration to reverse this decision so that America can continue to provide the affordable reliable energy that fuels modern life, achieves environmental progress, and ensures energy security for our nation and its allies.
“TXOGA estimates that nearly 30% of Texas’ total dry natural gas production ultimately is exported as LNG. Approximating the LNG industry’s impact across the value chain, given its sales (final demand) based on the wholesale value of natural gas, this conservatively suggests that LNG exports directly support 18,000 jobs throughout the value chain and nearly 54,000 jobs in total, including through direct, indirect and induced activities. In addition, Texas also provides about 60% of Louisiana’s total dry natural gas supplies, which includes consumption, net interstate movements, and exports.
“Furthermore, the halting of LNG export permits approvals risks nearly $200 billion of investments over the next five years and an annual average of 9,000 direct jobs that we estimate would be put to work in the American economy. Even just the pause in the permitting process is causing major disruptions and costing our nation billions of dollars in economic activity.”
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Founded in 1919, TXOGA is the oldest and largest oil and gas trade association in Texas representing every facet of the industry.