Senator Bernie Sanders has threatened to block a crucial government funding bill because it “would make it easier for the fossil fuel industry to receive permits to complete some of the dirtiest and most polluting oil and gas projects in America.” While Sanders’s passion cannot be denied, his analysis leaves much to be desired.
Specifically, Sanders — along with several dozen Democratic members of the House — objects to the Mountain Valley Pipeline, which would cut through West Virginia as it carries natural gas from Western Pennsylvania to Virginia and North Carolina. The project is part of a so-called side deal struck between Senate Majority Leader Chuck Schumer and Senator Joe Manchin that was necessary to secure Manchin’s vote on the Inflation Reduction Act.
Sanders is missing the big picture. Between 2007 and 2019, total emissions in the US — not per-capita emissions or per-dollar-of-GDP emissions — fell from nearly 7.5 billion tons of CO2 equivalent to 6.5 billion. That drop was powered almost entirely by declines in the electricity sector as it switched from reliance on coal power to natural gas, which is both cleaner and more efficient.
Underscoring just how powerful the coal-to-natural-gas transformation is, Germany is on track to see its emissions from the power sector rise by more than 10% this year as a result of the reduced availability of Russian gas. Still, switching back to coal has not been enough to prevent record-breaking energy prices, which have fueled a rise in overall inflation and a decline in industrial output.
The US has a chance to avoid that same fate only because it produces a surplus of natural gas domestically. Otherwise, inflation would be even higher than it is today, while the underlying economy would be weaker. In truth, however, the US needs to produce more natural gas for three reasons.
First, the US can help its allies in Europe and the Pacific Rim be less reliant on potentially hostile regimes by exporting more natural gas. From 2014 to 2021, the extra capacity put on the US domestic market by US oil frackers balanced intentional supply cuts by Saudi Arabia and Russia. Oil prices are rising now because producers are reluctant to add additional capacity in today’s uncertain environment.
The effect of gas fracking on international markets was not as stark because the infrastructure to export natural gas is far more complex and expensive. By expanding its export capacity, the US can provide relief for its allies — and by expanding domestic infrastructure and production, it can ensure that domestic prices don’t rise dramatically.
Second, the transition to electric vehicles will increase the demand for electricity. This seems like a straightforward point, but it seems to have eluded Sanders, who said that was “hard for him to understand why anyone would vote” for such a pipeline “especially at a time when we are transitioning to electric vehicles.”
The transition is precisely why more relatively clean power will be needed. If the US does not want to find itself turning back to coal for the EV-driven demand, then it needs more natural gas.
Third, increasing natural gas production and building new infrastructure will create jobs for some of the communities hardest hit by the decline in coal. In West Virginia, the Mission Valley Pipeline is projected to create some 4,500 jobs and inject $811 million into an economy that is otherwise struggling. That economic investment — far more than any lobbying from the fossil-fuel industry — is why Manchin demanded the deal.
Remember, the climate-related provisions in the Inflation Reduction Act, which Manchin voted for, will hit coal production hard — and rightfully so. There is no way for the world to meet its climate goals without a reduction in global coal production. To get his constituents to support those reductions, Manchin needed to offer them something. His offer is natural gas infrastructure — which also helps the US and the world make the transition to a secure electrically powered economy.
More From Bloomberg Opinion:
• Natural Gas Is Better Than Many Environmentalists Admit: Matthew Yglesias
• Europe’s Natural-Gas Crisis Is Worse Than It Looks: Javier Blas
• Energy Pipelines Shouldn’t Be Political: Julian Lee
This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.
Karl W. Smith is a Bloomberg Opinion columnist. Previously, he was vice president for federal policy at the Tax Foundation and assistant professor of economics at the University of North Carolina.
More stories like this are available on bloomberg.com/opinion
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