Thanks to the natural gas reboot, other countries could help pay down the U.S. debt

Americans have been celebrating the comeback of traditional, affordable and reliable energy, thanks to a change of administrations in Washington, less strident opposition from some state and local leaders, and the enthusiasm of companies to restart numerous projects that had been placed on hold.

While the resurgence of reliable energy is a boon for domestic consumers, many of the rejuvenated natural gas projects involve expanding the export market, which can strengthen our alliances around the world by making the U.S. their chief energy supplier.

But ramping up U.S. gas exports presents another opportunity – leveraging those exports in such a way that the additional revenue helps pay down our national debt.

The national debt – the amount of money the government has borrowed to cover expenses – currently stands at more than $37 trillion, or more than $106,000 owed by every person in America. The math is simple – the U.S. needs to spend less or increase revenue. Politicians on both sides of the aisle are averse to doing the former, so finding ways to do the latter is more realistic.

President Trump has been aggressively using tariffs as a negotiating tool to make international trade fairer and generate more revenue. But he can only impose tariffs on imports. Article 1, Section 9 of the U.S. Constitution prevents tariffs on exports. Nevertheless, smart trade and export policies can result in new revenue from foreign countries that helps pay down our national debt.

Various studies show that a surge in U.S. exports creates jobs, enhances innovation and facilitates more international investment in the U.S., resulting in sustained economic growth which, in turn, boosts tax revenue and reduces the national debt.

The exporting of liquid natural gas in particular can realize billions in revenue, significantly impacting the debt. The Trump administration’s reversal of President Biden’s January 2024 ban on pending LNG export approvals to non-free trade agreement countries is projected to reap billions over the course of the next two decades.

Under the Biden administration, that would not have been the case. An analysis by the National Association of Manufacturers found that “between 515,960 and 901,250 jobs, resulting in $59.0 billion to $103.9 billion in labor income, would be at risk in 2044 if the ban on U.S. LNG exports continued,” and “an LNG export ban would stifle between $122.5 billion and $215.7 billion in contributions to U.S. GDP during the same period.”

The study further determined that “between $26.9 billion and $47.7 billion in tax and royalty revenues meant to benefit communities across the United States would also be at risk in 2044” under the Biden LNG export ban.

Thanks to new Trump administration policies, those risks have been mitigated and the GDP is expected to soar, along with associated tax and royalty revenues. The revenue generated by LNG exports to countries around the world will have the de facto impact of other nations helping to pay down our national debt.

But exports aren’t the only way that expanding domestic energy production can help get our fiscal house in order. When it comes to the energy sector, smart land management policies can significantly impact the debt.

Sen. John Kennedy (R-La.) recently suggested that oppressive management policies of the Biden administration failed miserably in realizing the potential to utilize revenue from public lands to tackle the debt. In remarks to Congress, Kennedy noted that estimates suggest that our 620 million acres of public land, if managed properly, could generate billions in annual revenue.

“How? Through mineral harvesting, natural gas production, oil drilling, grazing for agriculture, hunting licenses, fishing licenses [and] camping permits,” Kennedy explained. “Do you know what our federal lands actually generate in money? We know the potential: $90 billion a year. That would help us pay down this debt.”

Kennedy added, “Under President Biden … they banned offshore drilling for most of America’s coastlines. They prohibited mining on over a million acres of lands. They canceled leases for oil and natural gas production. They paused all new permits for LNG, which Europe is hungry for. They … buried our federal lands in red tape. That is why we lost $13 billion instead of gaining $90 billion a year.”

Reports indicate that the Trump administration has embraced the view of many state officials that “too much of the land in their states is controlled by officials in Washington, D.C., leaving it off-limits for development and curtailing its economic value,” as Stateline reported. “Interior Secretary Doug Burgum has repeatedly called federal lands America’s ‘balance sheet,’ describing them as untapped assets worth trillions of dollars.”

For decades, our growing national debt has been a focal point of concern, an increasing burden on average Americans, and campaign fodder for political parties to weaponize against each other. If we want to get serious about shrinking the debt, unleashing America’s energy sector is one of the most effective tools we have to generate new streams of revenue from both home and abroad.

Gary Abernathy is a longtime newspaper editor, reporter and columnist. He was a contributing columnist for the Washington Post from 2017-2023 and a frequent guest analyst across numerous media platforms. He is a contributing columnist for The Empowerment Alliance, which advocates for realistic approaches to energy consumption and environmental conservation. Abernathy’s “TEA Takes” column will be published every Wednesday and delivered to your inbox!