Energy in China-US trade negotiations
If the US started to develop its internal market for LNG by encouraging transport companies to use more LNG as a fuel for heavy trucking and bussing, it would lower its oil use which in turn would reduce oil imports which cost the US more than the US would make with selling LNG to China. Keeping the LNG in the US and using it there makes financial sense. Plus, serving your own market does not expose US sellers to the whims of another country buyer and cleans up America’s air even further. Combine this with a push for small scale LNG in the Caribbean and Central America would open up new nearby markets that would certainly welcome some cleaner fuel at competitive prices and terms they can live with. There is a lot of space at the bottom – the US LNG industry can thrive without China if it wants to. Buckle up …
Amidst the rising tensions of the trade war between the US and China, several debates have been brought to the forefront regarding which side is likely to win the battle or whether there is any winning at all. Perhaps the answer to these questions lies in energy security, for energy remains central to the functioning of other sectors and therefore the overall economy.
