WASHINGTON (TND) — JPMorgan Chase CEO Jamie Dimon on Monday criticized the Biden administration’s pause on liquified natural gas (LNG) exports, which support power plants and industrial consumers.
The White House halted the exports to appease opponents of gas and oil consumption, according to Dimon, who issued his critiques in a letter to shareholders.
Trade is realpolitik, and the recent cancellation of future liquified natural gas projects is a good example of this fact,” Dimon argued. “The projects were delayed mainly for political reasons – to pacify those who believe that gas is bad and that oil and gas projects should simply be stopped. This is not only wrong but also enormously naïve.”
The Biden administration ordered the pause in January to extend until the Department of Energy updated economic and environmental analyses for LNG export authorizations. The studies no longer adequately accounted for recent assessments of greenhouse gas emissions or potential energy cost increases, according to the administration.
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Dimon claimed using gas in place of coal, which contributes to greenhouse emissions, was one of the best ways to reduce carbon dioxide for the next few decades. It also provides political benefits given other nations’ purported reliance on the U.S. for energy sources, according to the executive.
The strength of our domestic production of energy gives us a ‘power advantage’ – cheaper and more reliable energy, which creates economic and geopolitical advantages,” Dimon explained.
Dimon pointed to nations’ purported increased use of coal following spikes in oil and gas prices as evidence of the need for accessible energy sources.
“Nations around the world – wealthy and very climate-conscious nations like France, Germany and the Netherlands, as well as lower-income nations like Indonesia, the Philippines and Vietnam that could not afford the higher cost – started to turn back to their coal plants,” Dimon said. “This highlights the importance of safe, secure and affordable energy.”
American alliances could grow if countries increased their dependence on the U.S. for energy at the expense of the nation’s adversaries, Dimon added.
“Our allied nations that need secure and affordable energy resources, including critical nations like Japan, Korea and most of our European allies, would like to be able to depend on the United States for energy,” he said. “This now puts them in a difficult position – they may have to look elsewhere for such supplies, turning to Iran, Qatar, the United Arab Emirates or maybe even Russia.”
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The Biden administration has dismissed concerns over its ability to provide LNG to allies, noting the U.S. is the largest exporter in the world.
“The U.S. remains unwavering in our commitment to supporting our allies around the world,” the White House said in January. “Today’s announcement will not impact our ability to continue supplying LNG to our allies in the near-term.”
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Source: kmph.com
