ERIE, Pennsylvania Sept 26 (Reuters) - Drillers in
energy-rich Pennsylvania this week called on Democratic
presidential candidate Kamala Harris to detail her position on
natural gas, a fuel the energy industry bills as clean but which
climate activists say is a global warming menace.
President Joe Biden put a freeze on new liquefied natural
gas (LNG) export permits in January to study its environmental
impacts, in an election-year move aimed at making gains with the
party's green voting blocks.
But it is now Harris squaring off against Republican rival
Donald Trump, who has said he would immediately lift the permit
freeze if elected.
If she wins, she will likely be tasked with unwinding the
pause and incorporating any new recommendations from the
promised review, which the administration says is expected to
land after November's election.
Pennsylvania, a must win state for both Harris and Trump, is
the nation's second largest producer of natural gas. The state's
natural gas is tightly locked in shale rock and requires
fracking to extract.
"We need more details," said Dave Callahan, president of the
Marcellus Shale Coalition, whose members gathered in northeast
Pennsylvania this week for an annual conference.
Reuters talked to a dozen natural gas and drilling
executives who attended the conference, all of whom said they
are still guessing about Harris's energy policy.
"I think the public should want to know what her position is
on these matters prior to the election, because, ultimately,
they are the ones who will be impacted," said Rob Boulware,
director of stakeholder relations for Seneca Resources Company,
a major Marcellus Shale natural gas producer.
A spokesperson for Harris' campaign acknowledged the
industry's need for clarity, but suggested the details of her
approach on LNG need to be guided by the outcome of the review.
"The Vice President believes that we need to make decisions
informed by the best economic and scientific information
-including projected impacts on energy costs, energy security,
the environment, and public health," the campaign aide said.
Harris has adopted a plan of what aides call "strategic
ambiguity" on energy policy to avoid alienating environmental
activists and moderate voters this November.
She no longer supports a ban on oil and gas fracking on
federal lands, like she did during her 2020 presidential run.
The United States is the world's top producer of natural
gas, and became the No. 1 exporter of LNG in 2022 as Europe
looked to America to wean itself off Russia's vast energy
supplies following the invasion of Ukraine.
That's been a boon for U.S. natural gas producers like Devon
Energy Corp ( DVN ) and Exxon Mobil Corp. ( XOM )
In July, a federal judge blocked Biden's decision to freeze
new LNG export permits, ruling the administration overreached
its authority. However, the ruling didn't require the
administration to issue new permits and it has only issued one
since.
Toby Rice, CEO of EQT, a major natural gas producer, told a
room of natural gas officials at the coalition gathering that
political decisions were harming consumers.
"How can we have tremendous energy resources under our feet,
but energy bills in this country are going up 35%?" he asked.
"These bizarre things are happening in energy because political
force has overwhelmed market forces."
Much of the increase in gas prices in recent years relates
to increased global demand for U.S. natural gas since Russia
invaded Ukraine.
In June, U.S. producers exported 356.4 billion cubic feet of
LNG, up from 109 billion cubic feet just four years earlier,
according to the latest data from the U.S. Energy Information
Administration. Roughly 40% went to European allies such as
Germany, Italy, and the Netherlands.
North America's LNG export capacity, meanwhile, is projected
to more than double by the end of this decade to over 24 billion
cubic feet per day, the EIA projects.
Currently, gas from Pennsylvania's Marcellus Shale flows to
the Gulf Coast and Maryland's Cove Point terminal before it is
exported. But the industry harbors hopes for an LNG export
facility closer to home in the Philadelphia area.