The global energy market was suddenly turned upside down by Russia’s invasion of Ukraine, but an energy chief says the US could step in and help prop up global supplies.
Toby Rice, who runs the largest US natural gas producer EQT, told the BBC the US could easily replace Russian supplies.
“We have the ability to do more, the desire to do more,” Rice said.
He estimates that the US has the potential to quadruple its gas production by 2030.
Mr Rice’s statement that American companies could play a bigger role in Europe’s gas supply comes less than a week after US Energy Secretary Jennifer Granholm urged the country’s fuel industry to pump more oil.
“We are on a war base,” Ms. Granholm said. “That means you’re now producing more where and when you can.”
That’s a big if.
Twice in the last decade, shale producers have released greater supply in response to higher prices, drilling so much that prices have plummeted and many have gone bankrupt.
Mr. Rice explained that the industry is more cautious today:
“It has to be demand first and not just chasing the short-term price signal.”
And Pittsburg-based EQT could potentially boost performance. But without more pipelines, it can’t send the gas to where it’s needed most.
Another obstacle to US ambitions to export more liquefied natural gas is the lack of export facilities. US terminals deliver almost as much gas as they can.
Before natural gas can be shipped overseas, it must be taken to a special facility where it is cooled to below minus 260 degrees Fahrenheit and turned into a liquid. Then it can be loaded onto cargo ships.
Eight terminals are currently operational in the United States, and 14 other projects have been approved for construction.
Mr Rice said political opposition to building pipelines and export facilities – fueled in part by environmental concerns – is primarily preventing his industry from helping Europe end its dependence on Russian gas.
Mr. Rice called on the Biden administration to streamline the process for approving pipeline projects.
He is looking for a “signal that this administration recognizes the American oil and gas industry as a strategic powerhouse.”
Given the Biden administration’s desire to help its allies with their energy woes and resist Russian aggression, Mr Rice may get what he wants, and US Energy Secretary Granholm says to oil and gas producers:
“I’m here to extend a hand of partnership.”
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