Not that long ago, the mainstream media and leftists were in a tizzy over President Trump’s tough talk on trade, particularly with the European Union. I remember watching CNN as the so-called expert panelists described the coming economic Armageddon and stupid social media influencers sought to ignite a public panic over the sheer mention of the word “tariff.”
Per usual, the scaremongering has been proven wrong. Over the past few months, the Trump administration has reached favorable trade agreements with the United Kingdom, Japan, Vietnam, and most notably, the European Union.
While in Scotland, Trump met with European Commission President Ursula von der Leyen. After a mere 75-minute negotiation session, the two agreed on a trade framework that includes a $750 billion European purchase of American energy.
According to Trump, “it’s the biggest deal ever made” and “energy is a very important component.” More importantly, the president noted, “I think this deal will bring us very close together.”
In a statement, von der Leyen said the deal will “increase our energy cooperation. Purchases of US energy products will diversify our sources of supply and contribute to Europe's energy security. We will replace Russian gas and oil with significant purchases of US LNG, oil and nuclear fuels.”
Specifically, the European Union (EU) has pledged to purchase $250 billion in liquified natural gas (LNG) from the United States over a three-year period.
Last year, the EU imported 16.5 million metric tons of LNG from Russia, an all-time high. In other words, the EU is paying for Putin’s Ukraine invasion.
However, this tenuous situation, in which the EU funds the Russian war machine, is coming to an end, finally.
On July 25, a few days before Trump and von der Leyen met, the EU announced it seeks to “phase out all Russian gas imports by January 1, 2028.”
The United States is more than ready to fill the European energy void as Europe weans itself off Russian gas in the years to come.
In fact, since day one of his second term, Trump has placed what he calls “American energy dominance” at the forefront of his domestic agenda.
Under Trump, permits for drilling are being expedited and massive deposits of natural gas are being made available. As Trump well knows, the United States has an abundant supply of natural gas.
According to the Energy Information Administration (EIA), “U.S. natural gas proved reserves have increased nearly every year since 2000. Major advances in natural gas exploration and production technologies, such as horizontal drilling and hydraulic fracturing in shale, sandstone, carbonate, and other tight geologic formations, contributed to increases in natural gas production and reserves.”
As of 2022, the EIA estimates the United States has 691 trillion cubic feet in total proved natural gas reserves.
Suffice to say, the United States is sitting upon a mother lode of natural gas.
It also must be noted that natural gas hits the trifecta when it comes to affordability, reliability, and cleanliness.
In “Affordable, Reliable, and Clean: An Objective Scorecard to Assess Competing Energy Sources,” Heartland Institute President James Taylor notes, “Affordable, reliable, and clean are the foundational elements of sound energy policy. An in-depth analysis of seven common electrical power sources reveals that natural gas makes the most sense according to the affordable, reliable, and clean standard, with nuclear, hydro, and coal not far behind. Biomass trails by a moderate margin while wind and solar stand apart as the least desirable power sources.”
Lastly, I must remind those who have forgotten that back in 2017 and 2018, well before Putin invaded Ukraine, then-President Trump warned European leaders that their dependence on Russian natural gas was “a very bad thing.”
After Trump’s comment, several members of the German delegation laughed. Unfortunately, Trump was prescient while the EU put their heads in the sand and pretended as if their mass purchase of Russian energy had nothing to do with Russia’s military expansion and adventurism.
Yet, it is better to be late than never. I am glad that the EU seems to be on the right track when it comes to purchasing LNG from the United States. This deal could sow the seeds of an unprecedented trans-Atlantic energy partnership that will further cement the United States as the undisputed worldwide energy champion.
Chris Talgo (ctalgo@heartland.org) is editorial director at The Heartland Institute.
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