Sunday Thematic & Weekly Recap

LNG Permitting Halts, Some Positives, But Emission Reduction Is Not One Of Them
January 28, 2024
Commodities Mentioned:
Copper, Lithium, LNG, CO2, Power, Coal, Polyethylene, Polypropylene, Nickel, Ag Products, Industrial Gases, Renewable Fuels, SAF
Companies Mentioned:
Dow, DuPont, Sherwin Williams, Shell, ExxonMobil, Air Products, Nutrien, Gevo, PPG, Airbus, Fulcrum BioEnergy, LyondellBasell, BP, BASF

C-MACC Sunday Thematic and Weekly Recap

LNG Permitting Halts, Some Positives, But Emission Reduction Is Not One Of Them

  • The Biden administration’s decision to halt LNG export terminal permits may be great news for the current LNG players and the right decision from a US energy security perspective, but it will not help climate change.
  • Those buyers of US LNG are trying to meet power demand and demand growth while reducing reliance on coal-based power, which has much higher emissions – this is another wrong climate move.
  • Oddly, a more populist Republican administration may support the permitting halt for national energy security, not because of any global climate-related motives. Too much US LNG could mean higher US gas prices.
  • One of the most significant challenges corporations face this decade will be government interference in the name of climate change (or national security) based on who is shouting loudest rather than fact.
  • Otherwise, we look at US polyethylene prices, the disconnect between copper and lithium, the weakness in Germany, early earnings reports, hydrogen and renewable fuels, and climate related litigation.

Exhibit 1: US Greenhouse Gas Emissions By Economic Sector 1990-2021 – Source EPA

See PDF below for all charts, tables and diagrams

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