On Jan. 26, the Biden administration announced a temporary pause on the approval of new liquefied natural gas (LNG) export licenses to foreign nations while the U.S. government reviews energy export regulations in compliance with climate change guidelines. Industry CEOs have come out against the pause, while environmentalist groups have supported it.

Straight Arrow News contributor Peter Zeihan said that Biden’s pause is mostly a political move to win support from environmentalist camps. Zeihan believes that the pause will be lifted, that LNG complements wind and solar energy very effectively, and that the U.S. will ultimately scale up the production and export of LNG in the years ahead.

The following is an excerpt from Peter’s Feb. 14 “Zeihan on Geopolitics” newsletter:

The Greens are celebrating and the oil industry is kicking and screaming over the Biden administration’s decision to pause the review process of liquefied natural gas (LNG) exports. However, this decision’s actual impact is microscopic. This pause is very limited. It has no impact upon facilities already in operation, under construction, or even those already permitted. It only impacts facilities still at the eye-gleam stage. While the “pause” may impact some firms (very) long-term plans, there’s nothing tangible as of yet.

Natural gas has an interesting foothold in the energy space, as it is a cleaner alternative to coal and is highly compatible with green energy sources like wind and solar. This means that natural gas will likely serve as the complimentary energy source of the future, which will be a large pill for the Greens to swallow.

The Biden administration’s move is temporary, limited in impact and scope, and is just a political move to garner support leading up to the election. Think of this kind of like a politician’s wet dream — making some of your constituents happy without actually doing anything.