Natural gas producers ask Harris for answers on the battleground state

Drillers from Pennsylvania, an energy-rich state, called on Democratic presidential nominee Kamala Harris this week to explain her stance on natural gas. The energy industry touts it as a clean fuel but climate activists claim that the fuel is a threat to global warming.

In January, President Joe Biden froze new LNG export permits to examine their environmental impact. This was a move made in the election year in order to gain support from the green voting blocs of his party.

Harris is now facing Donald Trump, a Republican who has stated that he will immediately lift the freeze on permits if elected.

If she wins, it is likely that she will be given the task of unwinding the pause, and incorporating new recommendations from the promised assessment, which, according to the administration, should arrive after the November election.

Pennsylvania is the second-largest natural gas producer in the United States. Natural gas in Pennsylvania is locked up in shale and must be extracted by fracking.

Dave Callahan said, "We need more detail," as the president of Marcellus Shale Coalition. The Marcellus Shale Coalition's members were gathered this week in northeast Pennsylvania for their annual conference.

We spoke to 12 natural gas and drilling executives at the conference. All of them said that they were still guessing as to Harris's policy on energy.

Rob Boulware is the director of stakeholder relationships for Seneca Resources Company. This major Marcellus Shale gas producer.

A spokesperson for Harris’ campaign acknowledged that the industry needs clarity but said the specifics of her approach to LNG should be guided by the results of the review.

The campaign assistant said that the Vice President believed we should base our decisions on the best economic and science information, including projected impacts on energy prices, energy security and the environment.

Harris' aides have devised a strategy of "strategic uncertainty" in energy policy, to avoid alienating moderate and environmentalist voters this November.

She does not support a ban on oil-and-gas fracking in federal lands as she did when she ran for president in 2020.

In 2022, the United States will be the top LNG exporter in the world. The United States will be the world's No. 1 LNG exporter in 2022, as Europe looks to America to wean themselves off Russia's massive energy supply following the invasion of Ukraine.

This has been a boon to U.S. producers of natural gas like Devon Energy Corp. and Exxon Mobil Corp.

A federal judge in July blocked Biden’s decision to freeze LNG export permits. The judge ruled that the administration had overstepped its authority. The ruling did not require the administration issue new permits, and they have only issued one.

Toby Rice told a group of natural gas representatives at the gathering of the coalition that political decisions harm consumers.

"How is it that we have so much energy under our feet but the energy bills are increasing by 35% in this country?" He asked. "These bizarre events are occurring in the energy sector because political forces have overwhelmed market forces."

The increase in gas prices over the past few years is largely due to an increased demand for U.S. Natural Gas since Russia invaded Ukraine.

According to the most recent data from the U.S. Energy Information Administration, U.S. LNG producers exported 356.4 billion cubic feet in June. This is up from 109 million cubic feet only four years ago. About 40% of the LNG exported by U.S. producers went to European allies, such as Germany and Italy.

The EIA estimates that North America's capacity to export LNG will more than double to 24 billion cubic feet of gas per day by the end this decade.

Gas from Pennsylvania's Marcellus Shale is currently exported via the Gulf Coast terminal and Maryland's Cove Point Terminal. The industry hopes to build an LNG export terminal closer to home, in the Philadelphia region. (Reporting by Jarrett Renshaw from Erie, Pennsylvania. Tim Gardner contributed to the reporting in Washington DC. Editing and proofreading by Anna Driver.

(source: Reuters)