New report Oil Change International report shows that the Trump administration, the fossil fuel industry, and Big Tech are creating a perfect storm for rising energy prices with Nearly 80 million people In the United States they struggle to pay their electricity bills. The administration has thrown its weight behind a massive expansion of liquefied natural gas exports and artificial intelligence data centers that are largely powered by fossil gas. Coupled with Trump’s attacks on affordable renewable energy, these policies will likely push demand for fossil gas to unprecedented levels, increasing energy bills for households in the United States and countries that import LNG from the United States.
The wholesale price of US fossil gas is likely to rise double By the late 2030s, compared to the 2020-2025 average, if Trump’s AI and LNG policies succeed in pushing gas demand to levels that can only be met by more expensive gas production. New production in the Appalachian and Permian basins could meet some of the growing demand for fossil gas, but these relatively low-cost basins cannot produce enough gas to meet the increase in demand caused by Trump’s policies.
One area in particular, called the Hinesville Shale Zone, is expected to fill this gap. Production at the Haynesville shale field in western Louisiana and eastern Texas is expected to rise by more than 130%. However, because drilling in the Hinesville area is more expensive and gas is more difficult to access, such strong production growth will require higher prices.
Over the past decade, the average wholesale gas price (Henry Hub) has been $3.18 per million British thermal units (MMBTU). But analysts estimate that for gas supplies from Hinesville to grow to meet growing demand, prices must rise above $5. Many analysts, as well as the US Energy Information Administration, expect Henry Hub prices to reach an annual average of $7 by the late 2030s.
Policymakers in the United States and around the world can protect households from out-of-control energy costs by halting the construction of expensive gas projects and investing in clean, affordable renewable energy instead. The transition to a fair renewable energy system is also critical to creating good green jobs, reducing toxic fossil fuel pollution, and protecting communities from deadly climate disasters.
Lorne Stockman, research director at Oil Change International, said:
“Trump’s policies are making everyone’s lives more expensive, while Big Tech and the fossil fuel industry benefit. Our research shows that the cost of living crisis will only escalate in the coming years if Congress and government agencies do not intervene. our Leaders must stand up to Trump, phase out LNG exports, stop reckless construction of data centers, and transition the U.S. economy away from fossil fuels to make energy affordable again.
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