Biden’s Gas Exports Create Imported Headaches
LNG shipments to Europe are driving up prices — and curbing supplies — as executives stay on the sidelines.
The law of conservation of energy is ingrained in every high school science student: Energy can’t be created or destroyed, only transformed or transferred.
The global natural gas market represents the political version of that primary tenet of thermodynamics.
Europe’s demand for liquefied natural gas (LNG) to replace Russian imports has now been transferred to the U.S. Until now, shipping American LNG into Europe has been a policy that's won accolades for President Joe Biden. Politically, it helped contain Vladimir Putin, and economically, it boosted the U.S. energy industry. It has also helped to rebalance the trade deficit. Now comes the greater test. As the American gas market begins to connect with the European one, the price problems in Europe are crossing the Atlantic.