US Faces Third Gas Crisis in Eight Years Amid Shale Output Woes
The year 2030 will mark the third major natural gas crisis in eight years. The events leading up to this crisis were predictable, but the consequences are severe.
After Russia's invasion of Ukraine cut off Europe from two-fifths of its gas in 2022, importers reassured themselves that the Persian Gulf and the US had plenty to spare. However, when a war with Iran knocked out 20% of global LNG supply in 2026, America's booming fossil-fuel industry again promised to fill the gap.
The US natural gas prices have been caught in a perfect storm due to faltering growth in shale output, extreme weather conditions, and the power sector crippled by former President Donald Trump's war on clean energy. Frontier AI labs are also consuming large amounts of fossil fuels to power their data centers, further exacerbating the crisis.
The LNG terminals have allowed foreign buyers to compete directly with Americans habituated to rock-bottom prices, leading to a surge in exports. The ripples of this crisis spread quickly through the economy, affecting farmers, factories, and even energy policies.