U.S. Natural Gas Infrastructure Critical To U.S. Economic, Energy, Food, And Climate Security

The Russia-driven global crisis in natural gas supplies has pushed the world toward a tipping point in economic, energy, food, and climate security.

As MSCI’s partners at the Energy Equipment and Infrastructure Alliance explain in a new post, the United States’ vast natural gas and oil resources could insulate Americans from these dangers and help reduce energy insecurity for U.S. allies.

That outcome can only happen, however, if the federal government reverses current policies that have prevented the building of infrastructure, including production complexes, pipelines, and export facilities, here at home.

Here is how increased natural gas production would improve the situation in four key security areas:

• Economic Security. Natural gas is a primary fuel for power generation and for heating homes and commercial buildings. It is the primary feedstock for fertilizer production and the primary source of heat needed to produce critical materials like steel. Natural gas and natural gas liquids also are the primary inputs to nearly all chemicals and plastics used to manufacture everyday items. As a major component of the cost of living, therefore, natural gas affordability has a huge direct impact on consumers’ and businesses’ economic well-being.
• Energy Security. The United States’ abundant and affordable natural gas stock is in stark contrast to the picture in Europe, where native supplies are limited. While U.S natural gas prices have risen 43 percent from one year ago, in Europe they have skyrocketed 700 percent. As a result, Europeans are faced with rationing of gas supplies for heating as winter approaches. Entire industries that rely on natural gas energy inputs are threatened with shutdowns and job losses.
• Food Security. Natural gas is the main feedstock for nitrogen-based fertilizers used in agriculture. Without fossil fuel-based fertilizers, global agriculture can support, at most, three billion people on plant-based diets, versus today’s eight billion on mixed plant and meat diets, according to an expert analysis courtesy of the Energy Policy Research Foundation. Without natural gas, crop yields will decline, food prices will climb, and widespread famine could take hold in the world’s poorest regions.
• Climate Security. Natural gas emits 50 percent less carbon than coal when used for power generation. Switching from coal to gas has helped lower U.S. carbon emissions 24 percent between 2007 and 2020, a far greater decrease than any other major economy.