How US energy policy is preventing LNG progress

As a world leading energy exporter, the United States and Houston have been instrumental in supplying LNG to countries that would otherwise rely on more carbon intensive foreign oil and coal-fired power. Over the last 15 years, the United States reduced its carbon emissions by 879 million metric tons, nearly four times more than any other country. This is largely due to natural gas replacing coal as our primary source of power generation.

The proposed and developed projects along the Gulf Coast serve as hubs of innovation as well as reliable sources of LNG to the industry. Platform LNG projects, which Wood and I have had a close role in over the past 20+ years, stand as a representation of the industry’s potential. As a community and the energy capital of the world, Houston should want to continue driving the evolution of LNG and all lower carbon solutions as fuels of the future while we decarbonize conventional energy sources.

The energy sector is vital to Houston’s economic health, accounting for about 16 percent of local employment and 29 percent of wages between 2011 and 2020. As we transition away from emissions-heavy power generation, we need a clear, consistent and considerate policy standard that reduces uncertainty around LNG, so the United States does not forfeit its chance to lead the energy transition.

The advancement of our energy security and clean fuel capabilities are more aligned than they may seem. Elected officials, industry leaders and low-carbon advocates should work together to ensure a cohesive regulatory approach that does not stand in its own way, just as we have seen in the LNG space this year. We should steer processes for infrastructure development efficiently but responsibly, avoiding procedural delays that could undermine the United States’ leadership in the global energy transition.

In an industry where projects take years to permit and construct with billions of dollars at stake, regulatory unpredictability threatens the progress we have made in advancing the United States’ energy sector. Houston and the Gulf Coast stand to gain significantly from this growth opportunity – both economically and environmentally – so long as we institute a stable regulatory environment that supports cleaner fuel potential.

As government delays for critical infrastructure decisions remain in limbo, the ripple effects could slow down the progress we have made in building a more sustainable and resilient energy future that leads a positive trajectory for our regional businesses and families. Unless we want to forego energy advancement in the United States entirely, it is time we get out of our own way and seize a golden opportunity for investment and innovation to power the Greater Houston area’s long-term prosperity.