American Oil and Gas Reporter - October 2020 - 78

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Election2020: Industry Analysis
What for decades seemed to be an impossible dream of American energy
independence over the past several years has turned into American energy
dominance as crude oil and liquefied natural gas exports have provided
U.S. allies with alternatives to Middle East oil and Russian natural gas.
Despite these geopolitical and economic benefits, some once again
advocate banning U.S. oil and gas exports. How do you see
(Biden's/Trump's) opinion on the efficacy of U.S. energy exports? How do
you think (Biden/Trump) might propose to expand or restrict U.S. crude
oil and LNG exports?
There are several mechanisms by which a
Biden administration might restrict oil, natural
gas and product flows into and out of the
United States, but we regard export bans as "possible,
but unlikely." For example, the 2015 law that ended
the crude oil export ban included emergency powers
to impose a licensing requirement on exports, but we
do not believe Biden is likely to invoke it.
Biden also has campaigned on a plan to establish a
"climate test" for hydrocarbon exports-a judgment
as to whether U.S. energy exports reduce or increase
global GHG emissions on a net basis. But, in some
cases, that test may validate the status quo and future
exports. In any case, our understanding is that the
climate test is likely to apply to new infrastructure,
not to existing projects (or the molecules that flow
through them).
Biden does seem likely to tighten some LNG
export policies. We would expect a Biden administration
to reverse the to-be-finalized Department of Energy
proposal to categorically exclude LNG import and
export licensing from NEPA reviews. We also think
he might revoke the policy statement underpinning
export license authorizations through 2050, although
doing so for projects that already have been extended
could require a formal rulemaking process. And new
approvals may take a little longer to get through the
queue at DOE and a Democrat-led FERC.

78 THE AMERICAN OIL & GAS REPORTER

American energy dominance isn't good only
for America, it also benefits our allies and
freedom-loving nations around the world.
During the Obama-Biden administration, no more
than two LNG export terminals were approved; during
the Trump-Pence administration, 14 LNG export terminals have been approved. These multibillion-dollar
commitments will lead us into recovery from the
harms inflicted by the China virus.
We should continue President Trump's legacy of
exporting oil and LNG to our trading partners wherever
it is economically feasible. Energy is a critical asset
to U.S. national security and to maintaining a strong
upper hand in global negotiations as long as we
remain self-sufficient.
We do not need to again place ourselves at the
whim of totalitarian foreign governments for this
very vital resource. Americans should be proud that
our energy workers are transporting clean, abundant
LNG to countries that do not have access to this
treasured resource, and are thereby exporting America's
freedom, prosperity and clean air to all the world.

American Oil and Gas Reporter - October 2020

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