Exxon CFO Calls Biden's LNG Export License Halt A Big "Mistake"

Tyler Durden's Photo
by Tyler Durden
Friday, Feb 02, 2024 - 06:20 PM

It's been one week since the Biden administration, under the guise of saving the planet from an alleged imminent climate disaster, slapped Texas with a "temporary pause on pending decisions of Liquified Natural Gas exports."

Industry insiders, Wall Street, and even some government officials have been absolutely dumbfounded as to why the president would pause new LNG approvals in Texas, considering it the third-largest exporter of LNG in the world. Plus, Europe, more than ever, needs US LNG following the Nord Stream incident

However, it has become apparent that radicals in the White House punished Gov. Greg Abbott for defying the federal government over the border invasion. 

Even Senate Energy Committee Chairman Joe Manchin (D-W.Va.), a top critic within the Democratic Party on energy policies, recently vowed an investigation into the suspension of export licenses. 

Earlier this week, Jack Fusco, CEO of Cheniere Energy Inc., was quoted at the Baker Hughes annual conference in Florence, Italy, via Bloomberg, saying that the Biden administration's decision to pause approvals of LNG export licenses "was very confusing." He pointed out that US LNG helps lower dirtier fossil fuel generation emissions. 

Mike Sommers, president of the American Petroleum Institute, said the decision was "probably the worst energy decision that" Biden has made. He said, "Because of this pause, you're probably going to see some investment that would have come to the United States, go elsewhere." 

Then, on Friday, Exxon Chief Financial Officer Kathy Mikells was quoted in an interview by Bloomberg as saying the pause in new LNG approvals is a "mistake" and will reduce climate-damaging emissions. 

"Reducing production of LNG actually harms the world achieving net zero sooner rather than later," Mikells said during an interview, adding, "It's a mistake."

Exxon and Qatar are constructing an LNG export terminal along the US Gulf Coast, called the Golden Pass project, which is slated for operation next year and has already secured all necessary government approvals, according to Mikells. 

LNG is 50% cleaner than coal when used in power generation. It makes zero sense why the admin would hit Texas unless one were familiar with Biden's weaponization of federal agencies against opponents.