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taiwan
Trump's LNG Export Extortion Racket
Indian importers are under pressure from the government to reach deals that could smooth relations with Trump, the people said, but they will be looking for the best possible terms before signing any agreements.
Meanwhile, as Sing Yee Ong reports from Taipei
Taiwan is preparing to buy more liquefied natural gas from the US to reduce its trade surplus and potentially avoid higher tariffs.
Oh, and more to come
South Korea, Vietnam and the European Union are among energy buyers trying to appease President Donald Trump — and reduce the threat of tariffs — by looking to increase purchases from the biggest exporter of the super-chilled fuel and largest producer of crude.
I want to highlight these shakedowns, which have mostly been lost amidst the thousand other terrible things the Trump administration has loosed upon the world, because I know that before long Big Oil will be holding them up as evidence that the world needs and wants more fossil fuel. In fact, the world wants to move in entirely the opposite direction: 85% of new electric generation in 2023 came from renewables, and the numbers for 2024 will almost certainly be higher. That, of course, terrifies the fossil fuel industry—which is why they spent record amounts on November’s election. As fracking baron Harold Hamm explained, “We’ve got to do this because it’s the most important election in our lifetime.”
And now they’re getting the payoff: Trump threatens tariffs, and offers to make them go away if they buy some LNG. It’s akin to a protection racket. Pay up, or your windows get broken. It’s not criminal—it’s all entirely legal. It’s just wrong.
This particular protection racket makes no sense for America at large. Forget, for a moment, that LNG is a huge driver of the climate change driving fire and flood (by the time you’ve shipped it overseas it’s far worse even than coal); exporting it in huge quantities also obviously drives up the price for Americans still reliant on fracked gas for heating and cooking. The Energy Information Administration just predicted that natural gas prices will rise 21 percent in the year ahead. Politico did the math
Paul Cicio, president of the Industrial Energy Consumers of America trade association, said U.S. LNG exports are pushing natural gas and electricity prices higher.
Every “dollar increase in natural gas costs consumers $34 billion plus about $20 billion in higher electricity cost,” Cicio said in a statement Tuesday. It's “only going to get worse from here as LNG exports increase.”t of the Industrial Energy Consumers of America trade association, said U.S. LNG exports are pushing natural gas and electricity prices higher.
As the Sierra Club points out, Trump’s strategy “makes no sense.” And they’re right—as long as we’re talking about the future of the planet or the cost to American consumers. But that’s not who Trump is thinking about. He’s got one constituency and one only: the Big Oil execs who bankrolled his campaign. For them, this is sweet payback, a 100-1 return on their investment.
And it’s a stark reminder that we have to fight back on the only turf we have: the fact that the sun and wind can deliver the same product as LNG, only more cheaply and much more cleanly. We can’t threaten tariffs to get our way; we can only make the case in such persuasive terms that we start to change the zeitgeist. That’s the point of SunDay project I described last week and that you are going to hear a lot more about. Many thanks to those who went to sunday.earth to help us draw some suns as we prepare for the official launch of this big effort. So many of you took part already. Here’s a beautiful example from the effervescent Ayana Johnson (whose book What If We Get It Right is a document for this tough moment):
And here’s one from Billy Parish, whose Solar Mosaic has financed something like ten percent of the rooftop solar in America
It may seem like a mug’s game to take on Trump’s thuggish power with economics, physics, music, art, and justice. But perhaps they still hold some force in this world—we shall see.
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