LNG Holds The Key 🔑

May 9th, 2025

• Check out TEA’s new website for the latest in energy news and opinion — sorting Common Sense from the Nonsense.
• Refinery closures add to uncertainty about California’s fuel future.
• Wright: Climate change alarmism has hurt energy development.
• PJM prioritizes 51 projects to meet rising power demand.
• States sue Trump administration for blocking wind projects.
• Reconciliation: Natural resources plows ahead; other bills stall.
• Burgum: More data centers needed to win the technological arms race.
• Trump proposes slashing the DOE budget by $19.3 billion.
• Spains LNG imports from U.S. soar after blackouts.

DECLARATION OF ENERGY INDEPENDENCE (FROM RUSSIA): The European Commission next month will propose legal measures to phase out the EU’s imports of all Russian gas and liquefied natural gas by the end of 2027, it said on Tuesday.

Why it matters: In a rapidly changing world, American natural gas can play a key role as Europe finally weans itself off Russian energy. Buying energy from a friendly ally is preferable to supporting Putin’s incursion into other nations.

Fortunately Europe has signaled a willingness to buy more U.S. liquefied natural gas to replace Russian supply, a step that President Trump has demanded as a way of shrinking the EU’s trade surplus with the United States.

Consider:

• The European Union vowed to end its decades-old energy relations with former top gas supplier Russia after Moscow’s full-scale invasion of Ukraine in 2022.
• The Commission outlined how it plans to do this in a “roadmap” published this week.
• About 19% of Europe’s gas still comes from Russia, via the TurkStream pipeline and liquefied natural gas shipments, down from roughly 45% before the attacks.

With American LNG projects in Louisiana and Alaska taking shape, this affords the U.S. a great opportunity.

In 2023, the United States achieved a record in liquefied natural gas (LNG) exports, solidifying its position as the world’s leading LNG exporter. Our nation has a growing role in the global LNG market, driven by increased production capacity and export infrastructure.

This underscores the need for more pipelines and infrastructure to support natural gas and oil initiatives, a point that The Empowerment Alliance has made in its Common Sense Energy Agenda. Energy security, market stability and strengthening economic ties with allies in Europe makes for a solid trifecta.

Bottom line: American LNG holds the key Europe needs to cut off their ongoing reliance on Russian energy. With new LNG projects coming online in the U.S., now is the perfect time to double down on our energy exports across the pond.

OPEC MANIPULATES OIL MARKET: U.S. crude oil prices tumbled on the news that OPEC would once again be increasing production. Their strategy here is clear: to reduce the market share of U.S. producers and weaken American energy security.

Why it matters: The fact is that lower oil prices likely will suppress U.S. production and put OPEC in a stronger position. This potentially could make President Trump’s goal of energy dominance more difficult to achieve.

The June production increase is nearly triple the 140,000 barrels per day that Goldman Sachs had originally forecast. The moves mean that OPEC+ is bringing more than 800,000 bpd of additional supply to the market over the course of two months.

Consider:

• OPEC+ has decided to ramp up oil production by an additional 411,000 barrels per day starting in June, following a similar increase in May.
• This move aims to stabilize the global oil market amid concerns about overproduction by some member countries.
• The decision could put record downward pressure on oil prices, which have been fluctuating, in large part, due to President Trump’s tariffs.

The silver lining for Americans is that when oil prices are falling, gas prices are falling as well. There are some potential risks, however.

U.S. oil production is more expensive than in the Middle East where producers enjoy the lowest production costs in the world. Therefore, lower prices could result in less drilling activity, job losses and less investment in the domestic industry.

U.S. energy stock prices also could be at risk due to weakened investor confidence. This is causing concern among the nation’s largest oil producers in key states like Texas, Louisiana and Alaska.

Bottom line: OPEC is flooding the market, which means gasoline prices will be cheaper in the short-term for Americans, but domestic oil production could take a hit over the longer term.

Hearing On Geothermal Energy: On Monday, May 12, the House Natural Resources Subcommittee on Energy and Mineral Resources will have a hearing on “Letting Off Steam: Unleashing Geothermal Energy Development on Federal Land.”

Senate Hearing On EPA Budget: On Wednesday, May 14, the Senate Appropriations Subcommittee on Department of the Interior, Environment, and Related Agencies will have a hearing to examine proposed budget estimates for fiscal year 2026 for the Environmental Protection Agency.

FERC Open Meeting: On Thursday, May 15, the Federal Energy Regulatory Commission will hold an Open Meeting of the Commission.

House Hearing On EPA Budget: On Thursday, May 15, the House Appropriations Subcommittee on Interior, Environment, and Related Agencies will have a hearing on the fiscal year 2026 Environmental Protection Agency budget.

Hearing On Pipeline Safety: On Thursday, May 15, the Senate Commerce, Science, and Transportation Subcommittee on Surface Transportation, Maritime, Freight, and Ports will have a hearing to examine pipeline safety reauthorization, focusing on ensuring the safe and efficient movement of American energy.

“We aren’t stopping at energy independence; the goal is energy dominance. The United States will serve as THE example of strong, reliable, affordable, and secure energy for the rest of the world.”

— US Energy Secretary Chris Wright