Natural Gas: New US Weapon Against Russia?

While troops occupy Crimea, the United States refuses to come up with solutions and Russia remains stubborn in Ukraine.

Russia is clutching onto the lifeline of natural gas resources in Western Europe, trying to grasp the gas in its hands while simultaneously not even panicking. Russia often uses natural gas as a diplomatic weapon; the recent crisis in Ukraine is no exception. This time, however, the U.S. may not turn out to be Europe’s savior.

After the U.S. shale and natural gas revolution, domestic oil and gas companies have been way ahead, pushing Congress and government representatives to relax the ban on the export of natural gas. Reluctantly, progress has been slowed, restricting exports to Canada and Mexico.

Perhaps Ukraine’s crisis was the “favorable condition” that has been needed.

Last Friday, Hungary, Poland, Slovenia and the Czech Republic sent a letter to the White House and Senate majority leader requesting the U.S. to speed up natural gas export approval in order to achieve regional stability in Europe.

Republicans immediately responded, urging the White House to expedite the approval of exporting U.S. natural gas surpluses to Western Europe and other locations. U.S. natural gas exports are a new weapon against Russia’s expansionist goals, but also promote the development of its domestic economy, which presents as a double-edged sword.

The Obama administration has a vague attitude, and their continued avoidance of the U.S. natural gas exports problem is a “long-term issue,” but Congress’ acceptance of annulling the U.S. natural gas export ban is raising current prices. The indecisive government and Obama’s former employees are also singing the opposing tune. Elizabeth Rosenberg, former senior advisor to the assistant secretary of the Treasury for terrorist financing and financial crimes and undersecretary for terrorism and financial intelligence, claimed in Forbes that if the United States continues to “squirrel away our oil and gas,” it will become “energy isolationists” and miss a great opportunity “to fuel world economic growth and secure policy outcomes to America’s advantage.”

But even if this is a “favorable condition” for gas exports in terms of time, the issue of location is still worrying. The International Business Times threw a bucket of cold water onto supporters by claiming that even if the export ban was removed now, the issue of how to transport the natural gas to Europe would remain a chronic problem.

Currently, the United States only transports natural gas domestically, to Canada and to Mexico through a pipeline; the Atlantic Ocean stands in the way of accessing Europe. Exporting U.S. liquefied natural gas could be put into operation in the second half of 2015 at the earliest. Before this date, Western politicians trying to use U.S. natural gas exports as leverage in Russia is probably only wishful thinking. So far, only six export terminals have been approved.

Natural gas is not merely a form of energy, but also can function as a geopolitical weapon. If the Ukraine crisis can open up a reduction in U.S. natural gas exports, the world’s current situation regarding energy and politics could completely change.