Key takeaways
- US LNG exports are a national security asset, even though thousands of private firms, not the state, produce and ship every cargo.
- By 2028, US LNG exporters could plausibly supply considerably more gas to global markets than Russia’s Europe-bound pipelines did before the war in Ukraine.
- American gas abundance helps insulate US friends and partners abroad from Russian energy coercion.
- US natural gas acts as a geoeconomic force multiplier by reducing coal use in China and lowering energy costs for American manufacturers.
- Gabriel Collins argues that natural gas is the most powerful force yet found for displacing coal and putting the energy economy on a lower-emissions path.
The United States’ rich domestic energy resource base and the industrious drillers, financiers, and service company folks that bring those molecules to market play a critical national security role. Unlike most other major global suppliers, LNG cargoes leaving US ports are purely the product of private enterprise by a supply web counting thousands of firms. But the flow is a national asset nonetheless.
Gas is emerging as the bridge between the energy portfolio of today, that of 2030, and that of 2050 and beyond. It is the most powerful force humanity has found yet for displacing coal use and setting the energy economy on a structurally lower-emissions path.
Gas is a geoeconomic force multiplier. US gas helps chip away at coal use in China. It also empowers American manufacturers through lower energy costs. American gas abundance also helps insulate our friends and partners abroad from Russian energy coercion.
Regardless of one’s ideological persuasion, it is likely to remain a centerpiece of American (and global) energy security for a long-time to come. And there is likely even more and better to come. By 2028, US LNG exporters could plausibly have the capacity to put considerably more gas into the global market than Russia’s Europe-bound pipelines did before Moscow’s ongoing war against Ukraine.
Further Reading
–Steven Miles and Anna Mikulska, “Who’s To Blame For Exorbitant Natural Gas Prices In Europe? Hint: Maybe Not Who You Think,” Commentary, 26 October 2022, https://www.bakerinstitute.org/research/whos-blame-exorbitant-natural-gas-prices-europe-hint-maybe-not-who-you-think
–Gabriel Collins, Anna Mikulska, and Steven Miles. 2022. Winning the Long War in Ukraine Requires Gas Geoeconomics. Research paper no. 08.25.22. Rice University’s Baker Institute for Public Policy, Houston, Texas. https://www.bakerinstitute.org/research/winning-long-war-ukraine-requires-gas-geoeconomics-0
–Miles, Steven R. and Gabriel Collins. 2022. A Bridge Over Troubled Water: LNG FSRUs Can Enhance European Energy Security. Issue brief no. 03.29.22. Rice University’s Baker Institute for Public Policy, Houston, Texas. https://www.bakerinstitute.org/research/a-bridge-over-troubled-water-lng-fsrus-can-enhance-european-energy-security
–Gabriel Collins, Kenneth B. Medlock III, Anna Mikulska, Steven R. Miles, “Strategic Response Options if Russia Cuts Gas Supplies to Europe,” 11 February 2022, Baker Institute Research Paper, https://www.bakerinstitute.org/research/strategic-response-options-if-russia-cuts-gas-supplies-europe
–Collins, Gabriel and Anna Mikulska. 2021. Gas Geoeconomics: A Strategy to Harden European Partners Against Russian Energy Coercion. Policy brief: Recommendations for the New Administration. 02.12.21. Rice University’s Baker Institute for Public Policy, Houston, Texas. https://www.bakerinstitute.org/research/gas-geoeconomics-strategy-harden-european-partners-against-russian-energy-coercion
Frequently asked questions
Why is US LNG considered a national security asset?
US LNG is a national security asset because American gas abundance helps insulate US friends and partners abroad from Russian energy coercion. Gabriel Collins also argues that US gas lowers energy costs for American manufacturers and helps reduce coal use in China, making it a geoeconomic force multiplier even though private firms produce it.
Who produces US LNG exports?
Private enterprise produces all US LNG exports, not a state-controlled supplier. Unlike most other major global suppliers, cargoes leaving US ports come from a supply web of thousands of firms, including drillers, financiers, and service companies. Collins argues that this privately produced flow is still a national asset that serves American security interests.
Could US LNG exports exceed Russia’s pipeline gas supply to Europe?
US LNG export capacity could plausibly exceed Russia’s former pipeline supply to Europe by 2028. Collins writes that by then, US exporters could have the capacity to put considerably more gas into the global market than Russia’s Europe-bound pipelines did before Moscow’s ongoing war against Ukraine.
What role does natural gas play in the energy transition?
Natural gas serves as a bridge between today’s energy portfolio and those of 2030, 2050, and beyond. Collins calls gas the most powerful force humanity has found yet for displacing coal use and setting the energy economy on a structurally lower-emissions path, including by reducing coal use in China.
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