Global economic and political dynamics are constantly changing and shifting. Actions by one country can have a ripple effect around the world. Reliance on another country can lead to precarious situations. This was recently amplified when Russia invaded Ukraine and cut off critical energy supplies to European nations. This unfortunate example highlights the need for stable energy resources and how important a role it can play on global relations.
Here, in Pennsylvania, we have the resources right under our feet to grow our economy, enhance our national security and help stabilize global energy markets. As one of the leading natural gas producers in the country, second to Texas, Pennsylvania has emerged as a leader in the energy sector. The state’s abundant natural gas reserves have been a significant economic driver — supporting tens of thousands of jobs, revitalizing communities that had long been stagnant, and infusing substantial tax revenue into state and municipal coffers. The natural gas industry has put Pennsylvania on the map when it comes to energy innovation and opportunities.
Unfortunately, a short-sighted policy by the Biden administration is threatening to upend these positive benefits provided by the natural gas industry.
In January, the administration announced it was pausing new permits for U.S. liquefied natural gas (LNG) to study the impacts of these projects. Putting these permits on hold is a win for Russia and a loss for America’s allies, U.S. jobs and global climate progress.
There is no additional review needed to understand the clear benefits of U.S. LNG. In fact, six studies commissioned by the Department of Energy — under both Democrat and Republican administrations — over the past decade demonstrated the importance of this vital resource to stabilizing global energy markets, supporting thousands of American jobs and supporting emissions reductions around the world through the transition to cleaner fuels.
The negative effects of this permitting “pause” extend to every community across the Commonwealth. Pennsylvania is unique in that it levies an impact fee, clever word for tax, on the industry. The revenues generated from this fee are distributed annually to every county in the state.
Local governments have used these revenues to fund a wide variety of critical projects, including infrastructure upgrades; the building of parks, bike trails, and additional green space; and providing new equipment to emergency personnel. However, when companies produce less natural gas due to bad policies, this funding drops.
Thankfully, our governmental structure allows for checks on these types of sweeping policies implemented by the executive branch. In early July, a federal judge blocked the administration permitting pause; unfortunately, the Department of Energy has yet to take any actions to resume permitting for these projects.
For generations, the United States has served as a beacon of strength throughout the world. We are fortunate to live in a country with abundant energy resources that can provide American families and business with affordable and reliable energy while also serving as a stabilizing force for global markets. Policymakers should be focused on enacting smart energy policies that realize the full potential of these resources to meet the world’s growing energy needs.
Jezree Friend is the vice president of the Manufacturer & Business Association. Contact him at 814/833-3200, 800/815-2660 orjfriend@mbausa.org
