Second, the United States should support truly sustainable development goals for a growing world. It is the United States that has the potential to lead the world toward an energy-secure future. The IEA, UN, and Europe have proven incapable. The first step should be to support new market opportunities and commercial relationships for American, not Chinese, supplies. Commercial diplomacy could be the boost the United States’ flagging diplomatic stature needs right now.

Finally, the administration should discourage climate-related investment policies. The U.S. Securities and Exchange Commission’s climate-related disclosure mandates force private companies to be unduly exposed to climate activism and litigation, and environmental, social, and governance (ESG) standards undercut the ability of projects to secure financial backing. Even if a project developer secures sufficient offtake agreements and substantial revenue projections, the United States risks a future in which banks refuse to back new developments. Even with $1.5 trillion in backing, renewables are insufficient, and nuclear takes time.

The Future of American Energy Leadership

The U.S. Energy Information Administration’s 2022 Annual Energy Outlook projects that U.S. natural gas production will grow by just 24 percent to approximately 110 bcf/d by 2050, while U.S. LNG exports will remain stagnant at about 16.1 bcf/d after 2025. Under current regulations and policy, America’s potential is set to disappoint a world in which demand for LNG will nearly double by 2050. There is an alternative.

Recall the earlier example of the Appalachian states of Pennsylvania, Ohio, and West Virginia. The historic growth in production is merely a glimpse of the country’s potential. Should the United States double down on unleashing the transformative power of domestic natural gas, the region could usher in a second, more profound energy renaissance. After all, half of U.S. natural gas proved reserves rest waiting in the Appalachian region. This assessment is also likely a gross underestimation of the real potential.

This administration, or the next one, could ensure that U.S. natural gas production reaches well beyond the short-sighted production and export projections of current policy. It is not at all unrealistic for U.S. production to reach 200 bcf/d by 2050 and for U.S. LNG exports to similarly grow to 55 bcf/d by 2030. Such increases would not only guarantee Europe’s energy security but also that of U.S. strategic partners in the Western Hemisphere and the Indo-Pacific.

All that stands in the way is an administration and a regulatory regime out of touch with market dynamics. It is time to finally learn the lessons of the past and position the United States as the world leader in energy. Anyone left doubting this should consider where Europe would be without fracked, American natural gas.

Samuel Buchan served on the White House National Economic Council as the Director for International Economic Policy and the Senior Advisor to Secretaries of Energy Rick Perry and Dan Brouillette. He is currently the Director of the Center for Energy & Environment at the America First Policy Institute.

Carla Sands served as the U.S. Ambassador to the Kingdom of Denmark during the Trump Administration. She is the Vice-Chair of the Center for Energy & Environment at the America First Policy Institute.

Image: Reuters