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PA Marcellus Shale Gas Coalition Doubles-Down On Support For Exporting PA Natural Gas To China, Our Economic, Military Competitor

In a statement to PA Environment Digest on April 12, David Callahan, President of the Marcellus Shale Gas Coalition, again laid out his group’s support for “unleashing US LNG” exports and agreeing with the position of Pittsburgh-based EQT Corporation that the US has a “duty” to supply gas to China, our economic and military competitor.

Callahan provided a copy of EQT’s Unleash LNG Exports presentation to document the Coalition’s position

“I do not understand why you seem perplexed that the MSC would be aligned with its many members who tout the significant environmental, economic, and national security benefits of LNG exports,” Callahan said.

“These benefits are laid out in compelling detail in EQT’s Unleashing U.S. LNG slide deck, and are worthy of your readers’ attention, as well as your own.”

[Note: The Digest published EQT’s presentation on March 5.]

“Clean, affordable, and abundant natural gas is critical to not only expanding this environmental progress – but helping to lift hundreds of millions of our fellow humans across the globe out of poverty and toward an enhanced quality of life.”

[Note: Never mentioned or acknowledged by the Coalition are the significant and ongoing environmental and health impacts of the gas extraction industry and all its related infrastructure in Pennsylvania.

[The evidence of harm to health was so persuasive, the state Department of Health last August apologized to residents of Southwest Pennsylvania for not taking their claims of health impacts seriously. They agreed that what they were finding was “just the tip of the iceberg.” Read more here.

[In 2023, the shale gas extraction industry saw a natural gas processing plant explode and a well pad catch on fire; uncontrolled venting of gas; a gathering pipeline run down a hill and spear a home; frack-outs; polluted water supplies; abandoned shale gas wells; failures of gas infrastructure that almost led to blackouts on the electrical grid; radiation cleanup; a 63,000 gallon spill on State Game Lands; over 575 spills and releases that had to be cleaned up on the Act 2 Land Recycling Program; and much more. Read more here.

[You can follow these issues in PA Environment Digest’s weekly Compliance Dashboard that summarizes the results of many DEP oil and gas inspections each week. Read more here.

[Also not discussed were the 150+ residents of Chester who came to a hearing to oppose an LNG gas export facility in Delaware County and outline the significant impacts it would have on their community. Read more here.]

We Ignore China At Our “Peril”

Callahan explained-- “We ignore what is happening in China and other nations at our own peril.”

“Climate change and global warming are, as the name infers, issues of a global nature. Simple math demonstrates that the benefits of meaningful progress domestically can be quickly eroded if foreign emissions outpace this progress.”

As EQT CEO Toby Rice argued in the slide deck Callahan provided, China needs US natural gas to reduce its dependency on the use of coal to generate electricity and reduce power plant emissions.

EQT noted "China's current energy mix mirrors that of Pennsylvania and Ohio in 2005" saying with US-supplied natural gas, China could replicate the model for emissions reduction.

EQT said "The only solution" to climate change is "unleashing US LNG" for China.

Not only EQT, but Shell and other companies see LNG gas demand growing significantly by 2040 as the Chinese industrial sector pivots from coal to gas. Read more here.

Shell’s CEO said “China is likely to dominate LNG demand growth this decade as its industry seeks to cut carbon emissions by switching from coal to gas.” Read more here.

Reuters has reported US LNG gas supplies give China the “muscle” to become a major force in global gas trading for gas, even for gas they don’t end up using. Read more here.

China has the world’s second biggest economy and would like to continue its growth with a recently announced 5% growth target and LNG gas would be a large part of that success. Read more here.

Dependency On China For Critical Minerals

Callahan went on to say, “too many look the other way regarding our nation’s dependence on China for the rare earth minerals and associated processing necessary to produce wind turbines, solar panels, electric vehicles, and many other goods.

“It seems hypocritical to infer that shipping LNG to China borders on unpatriotic, yet advancing domestic policies that increase our reliance on China is perfectly acceptable.”

[Note: The fact is PA Environment Digest has extensively covered the critical minerals and rare earth minerals issues, in particular the work of Penn State and others to draw rare earth elements from abandoned mine drainage.

[Federal funding has supported Pennsylvania organizations in the development of alternatives to Chinese and other sources of critical minerals as recently as February 15. Read about this great work here.

[The National Energy Technology Laboratory in Pittsburgh and Morgantown made a big commitment to the development of critical minerals and materials in Pennsylvania and the region. Check this out.

[The Biden Administration, through its Invest in America programs, is investing billions of dollars to support clean energy manufacturing, technology development and US-sourced electric vehicle and utility-scale batteries, including in Pittsburgh. The first Administration to do so. Read more here.

[Google it.]

Attacking Gas Industry Workers

Callahan said, “At times, it seems you are interested in attacking Pennsylvania’s natural gas industry and its employees, while ignoring the many benefits associated with the export and use of clean American LNG.”

[Note: It’s the gas companies that determine who they sell their gas to, not the rig hands, truck drivers, excavators, environmental cleanup, welders and other workers.

[Companies and the industry Coalition support selling gas to China that will support the Chinese economy in ways that could put American workers out of a job.

[On February 28, Ohio US Senator Sherrod Brown and Oregon US Senator Jeff Merkley introduced the Protecting American Households from Rising Energy Costs Act, legislation that would ban the export of crude oil or liquefied natural gas (LNG) to our biggest adversaries: China, Russia, Iran, and North Korea. Read more here.

[“It’s time to stop raising prices for Americans by sending LNG to our adversaries,” said US Senator Merkley. “I’m partnering with Senator Brown to fight to lower energy prices for working Americans.”

[“We should not allow American liquid natural gas to fuel China’s state-sponsored industries. The Chinese Communist Party uses that energy to cheat and undermine Ohio production and Ohio jobs,” said US Senator Brown. “Blocking China and other adversaries from obtaining our LNG will protect our national security, and keep more of this energy in America, helping bring down prices for Ohioans.” Read more here.

Serious Issues

Callahan concluded-- “These are serious issues, worthy of serious discussion. Reducing emissions across the board is important. But so, too, is our national security and the economic security of our fellow Americans. The “gotcha” approach of omitting key facts and context is demeaning to this serious conversation.

“Please be assured that we will continue to advocate, forcefully and with facts, on behalf of those member companies and employees which the MSC is privileged to represent.

“And we will make no apologies for doing so.”

[Note: These are serious issues and the whole big picture needs to be discussed, and not just through the very narrow lens of gas company positions, but in terms of the national interests of the United States.]

Click Here for a copy of the Marcellus Shale Gas Coalition’s full statement.

Other Gas Industry Observers

Other industry observers, like Marcellus Drilling News, have looked at the bigger picture-- the impact of selling LNG gas on the fundamental interests of the United States-- “Selling oil and natural gas to China?” “It simply should not happen, period.” Read more here.

MDN went on to explain--

“What we will say is what we’ve said dozens (maybe hundreds) of times before — that China is our enemy. They are our biggest enemy on the planet.

“Anything we do to enable China to be more powerful is pure stupidity.

“More of the products Americans buy come from China than those manufactured here at home — it’s insanity.

“China will one day use its economic power to crush us.

“So maybe you won’t be surprised to read that this one time (perhaps the first!), we think Brown and Merkley’s bill is not such a bad idea.

“As far as we know, we’ve never agreed with either of them on anything.

“But selling oil and natural gas to China? Or Russia? Or North Korea? Or Iran?

“It simply should not happen, period.

“Sorry to our drilling friends who will disagree with us (those who sell LNG to China).

“For us, this is a matter of putting our country above profits.”

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