A Congressional hearing this week could determine whether the United States will abandon its bureaucratic controls on the export of liquefied natural gas.
Today, exporting LNG to another country is legal, but it requires approval by the Department of Energy. As with any bureaucratic process, this means long and costly delays, Heritage’s Bryan Riley explains.
Thanks to this unnecessary government involvement, LNG producers face major obstacles to exportation. This makes it easier for foreign energy companies other countries to swoop in and take opportunities that Americans could’ve had.
Other energy-producing countries are big fans of the restrictive U.S. policy. As American producers wait for DOE approval to export LNG, Canada is building a $16 billion terminal to export LNG to Japan and other countries.
Proposed new legislation, though, would remove these restrictions and allow American producers to export to Japan and our NATO allies. This is a good step, though a better one would be to remove all government restrictions on energy exports.
As Riley points out, “allowing those private producers to sell to anyone they want fits best with U.S. constitutional values.”
Do you think government should be able to curb free enterprise like this?