Exxon, Qatar Petroleum Get OK to Export U.S. Fracked Gas Amidst Tangled Ties to Russia, ISIS

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Just days before Christmas, the U.S. Federal Energy Regulatory Commission (FERC) gave ExxonMobil a gift: a permit to export natural gas from itsย Golden Pass LNG (liquefied natural gas) facility located in Sabine Pass,ย Texas.ย 

Dubbed Golden Pass Products, the expansion of thisย LNG facility to export gasย is a joint venture between Exxon (30 percent stake) andย Qatar Petroleum (70 percent stake), the state-owned oil company. Golden Pass LNG is now the fourth LNGย export facility, and third situated along the Gulf of Mexico, approved under the Obamaย administration.

This facility will continue to open up the global market to U.S. natural gas obtained via hydraulic fracturing (โ€œfrackingโ€).ย 

The permit forย Golden Pass comes shortly after Exxon’s CEO, Rex Tillerson, wasย named Trump’s nominee for U.S. Secretary of State and will likelyย face aย tough Senate confirmationย hearing in January, mainly due to his close ties toย Russia.

Golden Pass LNG Exxon

Image Credit: U.S. Federal Regulatoryย Commission

โ€œCatastrophicย Impactsโ€

In handing Golden Pass the permit, FERC stated that โ€œthe environmental effects resulting from the export of LNG as a commodity, i.e. effects related to future upstream production, gas-to-coal-switching, and foreign end use of natural gas, are neither caused by the Commissionโ€™s approval of Golden Passโ€™s LNG export facilities, nor reasonably foreseeable consequences of the Commissionโ€™s approval of theseย facilities.โ€

But critics, such as Joe Romm of the Center for American Progress, say a U.S. LNG export boom would be a climate change catastrophe due to methane leakage and emissions. Methane is a greenhouse gas 86 times more potent than carbon dioxide during its first 20 years in theย atmosphere.

โ€œAt best, investing billions in LNG infrastructure is a waste of enormous resources better utilized for deploying truly low-carbon energy,โ€ wrote Romm in March 2014. โ€œAt worst, it helps accelerateย the world past the 2ยฐC (3.6ยฐF) warming threshold into Terra incognita โ€” a planet of amplifying feedbacks and multiple simultaneous catastrophicย impacts.โ€

Russia, ISISย Connections

Originally, the push to exportย LNG from the U.S. centered around a bipartisan-promoted premise of weaning U.S.-allied countries off of Russianย gas.

The most recent bipartisan push in 2014 consisted of the likes ofย U.S. Rep. John Boehner (R-OH)ย and U.S. Sen. John McCain (R-AZ), as wellย formerย Clinton Administration U.S. Secretary of Energyย Bill Richardson,ย pointing to the utility of exporting U.S. LNG to weaken Russia’s influence. This ensued at the dawn of the Crimea crisis inย Ukraine.

โ€œWhat can the U.S. do to help alleviate Europe’s reliance on Russian natural gas?,โ€ wrote McCainย in The Wall Street Journal in July 2014. โ€œWe need to use our leverage wisely: to boost our economy at home, and to strengthen our national security by helping our allies resist Russianย aggression.โ€

Former Boehner staffer Josh Holly works at the Podesta Group โ€”ย owned by Tony Podesta, the brother of one of Democratic Party presidential candidate Hillary Clinton’s top aide, John Podestaย โ€” where Holly lobbies on behalf of Golden Pass. Randall Gerard, a former McCain staffer also employed by Podesta Group, lobbiesย alongsideย Holly.

Even before theย Crimea crisis began, in December 2012, theย U.S.ย Senate Committee on Foreign Relations published aย 62 page reportย calling for the U.S. government to start โ€œputting molecules where our mouth isโ€ and useย U.S.ย LNGย exports as a cudgel against Russia to โ€œcontribute to Europeanย energyย security.โ€

U.S. LNG report text

Image Credit:ย U.S.ย Senate Committee onย Foreignย Relations

Oh, how quickly thingsย change.

Two and a half years laterย on December 11, 2016,ย the state-owned Qatar Investment Authority announced a purchase of a 9.75 percent stake in Russian state-owned oil and gas giant Rosneft. Igor Sechin, former deputy prime minister under Russian President Vladimir Putin and current executive chairman of Rosneft, said in a Rosneft press release that the โ€œprivatization deal marks itself as the largest in the history of Russia.โ€

As reported by DeSmog and many other outlets, Exxon and Rosneft have several joint venture deals, including exploration deals in Russia’s Bazhenov Shale basin in Siberia and offshore in the Russian Arctic.ย It appears likely Tillerson will come under heavyย questioning about those ties during his U.S. Senate confirmationย hearing.ย 

Russia’s alleged intervention in the U.S. presidential election by hacking into the email databases of the Democratic National Committee (DNC) and Podesta, are currently under review by the U.S. intelligence bureaucracy. In a recent interview with NPR, Obama said the U.S. will retaliate against Russia during his remaining weeks inย office.ย 

Beyond the close personal and financial connections to a country which many observers believe to be a geopolitical adversary, there is another key node in this tangled web: Qatar and its relationship to the Islamic State in Iraq and Syria (ISIS).

Ironically enough, that relationship recently came to light in the Podesta emails published by Wikileaks and allegedly obtained by Russian-sponsored hackers.ย Clinton emailed Podesta in September 2014 and cited Western intelligence agencies,ย statingย that Qatar and Saudi Arabia are providing โ€œclandestine financial and logistic supportโ€ to ISIS.

Newsweek also reported in November 2014 that the Qatari, Saudi Arabian, and Kuwaiti governments and business elites within those countries had given as much as $40 millionย to the group. Qatar denies it has ever directly funded ISIS.

Adding further complexity to the situation, Trump hasย said repeatedly that under his watch, his administration would โ€œknock the hell out of ISIS.โ€

โ€œYou Are theย Giftโ€

Geopolitical relationships change over time, of course, and Russiaย now serves as a case in point. The Trump transition team has signaled a potential U.S.-Russia reset, withย friendlier relations between Washington and Moscow toย follow.

Saturday Night Live even ran a recent parody segment featuring Tillerson, Trump, and Putin, in which Putin told Trump, โ€œYou are theย gift.โ€

Naomi Klein, boardmember of climate advocacy organizationย 350.org and author of the 2014 book This Changes Everything: Capitalism vs. the Climate, warned that the Crimea crisis could serve as a giftย of its own for the LNG industry โ€” and the fossil fuel industry at-large โ€”ย for decades to come, regardless of ever-changing geopoliticalย realities.

โ€œI call this knack for exploiting crisis for private gain the shock doctrine, and it shows no signs of retreating. We all know how the shock doctrine works: during times of crisis, whether real or manufactured, our elites are able to ram through unpopular policies that are detrimental to the majority under cover of emergency,โ€ wrote Klein in The Guardian in April 2014.

โ€œSure there are objections โ€” from climate scientists warning of the potent warming powers of methane, or local communities that don’t want these high-risk export ports on their beloved coasts. But who has time for debate? It’s anย emergency!โ€

In a recent โ€œThank Youโ€ tour speech held in West Allis, Wisconsin, Trump told the crowd that โ€œWe are going to say merry Christmas again.โ€ And for Exxon, Rosneft, and Qatar Petroleum, it’s looking like it’ll be a very merry Christmas,ย indeed.

For the future of the ever-warming planet and record-warm North Poleย in the Arctic where Santa lives and works? Not soย much.

Photo Credit: YouTube Screenshot | Saturday Nightย Live

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Steve Horn is the owner of the consultancy Horn Communications & Research Services, which provides public relations, content writing, and investigative research work products to a wide range of nonprofit and for-profit clients across the world. He is an investigative reporter on the climate beat for over a decade and former Research Fellow for DeSmog.

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