Sunday Briefing: Karen Harbert and Jacqui Heinrich on Natural Gas, Energy Security, and National Security
AGA’s President and CEO Karen Harbert joined Jacqui Heinrich on Fox News’ Sunday Briefing to address the essential role natural gas plays in America’s national security amid international conflict. Watch the interview and read the transcript to get the latest on energy security and the way it informs national security.
Jacqui Heinrich:
Domestic energy prices climbed in March, seeing the largest monthly gain in 20 years. But the index for natural gas bucked the trend, decreasing nearly a full percent over the month. For more, let’s, let’s bring in American Gas Association President and CEO, Karen Harbert, thank you so much for being with us today. … I want to know how all of this news is being digested in your circles.
Karen Harbert:
Well, I think we know one thing for sure, which is being proven out in real time, that energy security is national security. And you’re right – there’s a different story on the natural gas side of things. I mean, given everything that’s going on, Russia, Ukraine, the Middle East, natural gas prices are still hovering around $3, and that’s not the case in Europe, where it’s at $15. It’s not the case in Asia, where it’s at $20. We have the ability to insulate the American public on the natural gas side of things, which still remains the most affordable way to heat your home, fuel the economy of the future, and fuel our defense industrial base.
Heinrich:
And you’re right, the US is a lot more insulated from this shock than the rest of the world, but you have Asian countries that get, what is it, 90% of their oil and 80% of their LNG through the Strait? And these are huge numbers … Europe as well – at some point we will feel the trickle down effect. When do you think that moment is?
Harbert:
Well, we’re seeing it right now with the prices at the pumpand we’ve got every indicator in the market to continue for our producers to produce more. Same on natural gas. We can fuel our allies in Europe and beyond with our natural gas. What we are constrained aboutis infrastructure. We need to be able to build the pipes and the wires to move these electrons and molecules around. There’s a real opportunity for bipartisan support to do what’s right on behalf of the American economy.
Heinrich:
What was the industry’s expectation for this Cease fire? Did this come as a surprise that it might not be holding? You know, what’s the sort of medium to long term plan?
Harbert:
Well, I think we live at a time of “expect everything” and “plan for everything” – and that’s what this industry has done. We’re producing more than we ever have. We’re exporting more than we ever have. Doing as much as we can to stabilize the world’s economy, but there’s opportunity to do more. And I think you know the news this morning was a little bit of a shock, but we have learned not to be shocked anymore.
Heinrich:
Yeah, so we are just beginning to see the impacts of this. As you noted, consumer prices rose 3.3% in March from a year earlier, up from 2.4% in February. It was the sharpest pace month to month in almost four years that was pushed up by a 10.9% surge in energy costs. Gasoline went up 21.2% heading into these talks. The President’s top economic adviser said this, listen here.
Administration Advisor:
Gas prices are unacceptably high right now, but it’s a very temporary phenomenon. We’re already seeing more ships start to come through the straits. As bad as is at the gasoline pump here in the US is way worse in other countries, and it’s very, very urgent that the talks this weekend be successful with JD Vance and the Iranians
Heinrich:
Obviously didn’t go that way. Are you concerned about a big shock when markets open on Monday?
Harbert:
Well, we certainly hope not. Nobody likes inflation. Nobody likes to see a huge surge in energy costs, or, changes in the stock market. However, we just have to think back a couple of years. We started exporting liquefied natural gas just 10 years ago, and now we’re the world’s largest exporter of natural gas. The transformation of America’s energy landscape is protecting consumers to the extent that it can.
Heinrich:
How quickly can sort of the rest of the world reorient their energy supply around the Strait of Hormuz and sort of put America right at the front.
Harbert:
Well, it’s everybody’s worst nightmare to have the Strait of Hormuz closed. But as I said, , we’re in better shape than we were 10 years ago, since we’ve got access to more energy supplies. I think the thing we need to be watching is the scale and speed of which these other countries try and find new export routes. They’re going to build new pipes. It takes time. It takes 10 years in this country, let’s hope it only takes 10 months and other countries to be able to free up new export capacity for the rest of the world.
Heinrich:
What specific industries do you expect are going to reflect this challenge the most? I know that airline fares have jumped a bit, shipping costs. What are the sort of sectors that you got your eye on right now?
Harbert:
Well, you’re right on airlines and obviously the price of gasoline, but we’re really watching fertilizer. Right now, we’re the second largest producer of fertilizer in the world. There’s opportunity for growth there, but that’s a real constraint as we’re going into farming season – planting season, that countries around the world that rely on the Strait of Hormuz for fertilizer won’t have it.
Heinrich:
And there have already been some shortages because of the blockade in the strait. Do you expect that that’s going to cause sort of a long whiplash with potentially even as energy prices start to drop, food costs could rise because of that challenge to fertilizer during planting season?
Harbert:
Well, I think there is a little bit of a risk there. I know that our fertilizer producers, which largely came from the Middle East, went to Europe, and now they’re in the Gulf of America, have an opportunity to continue to expand their production, and that will help feed the underdeveloped countries in this world that rely on fertilizer from that part of the world –we can actually step into the breach a little bit.
Heinrich:
All right. Karen Herbert, thank you so much for joining us on a very newsy Sunday.