To blunt Russia, time for American natural gas diplomacy
Photo REUTERS/Kevin Lamarque
The American natural gas revolution has boosted economic competitiveness, and helped reduce U.S. carbon emissions to their lowest levels in 20 years. The question is now whether the United States will leverage this energy bounty to advance its foreign policy goals during the most serious East-West crisis in a generation.
Russian’s intervention in Crimea and looming threats against eastern Ukraine underscore Europe’s energy vulnerability. Roughly 80 percent of Russian exported gas to the EU passes through pipelines in Ukraine, which Moscow has turned off twice in recent years.
A shale gas revolution in Europe could help to limit the EU’s energy vulnerability to Russia. But while there are great hopes for the safe and environmentally responsible development of unconventional gas in the UK, Poland, and elsewhere, a reliable source of shale gas in Europe may still be a decade away.
That is why Europe has turned to imports of liquified natural gas, tripling its imports in the last decade. Unfortunately, U.S. exports of LNG are not part of this equation. Under present law, the U.S. Department of Energy must approve the exports of LNG to countries lacking a free trade agreement with the United States, including NATO allies and members of the EU. That approval process is lengthy and can be opaque. The U.S.-EU trade agreement, known as the Transatlantic Trade and Investment Partnership, is under active negotiation, but difficult issues remain, the talks are at an early stage, and it is unlikely that a treaty would be brought to the Senate for approval before the mid-term elections.
Paul Bledsoe is senior fellow on energy and climate at the German Marshall Fund of the United States, and was Communications Director of the White House Climate Change Task Force under President Clinton.
Lee Feinstein is a former principal deputy director of policy planning and former US ambassador to Poland. Richard Burt is a former assistant secretary for Europe and former US Ambassador to Germany.