Liquefied Natural Gas: Redefining Nature, Restructuring Geopolitics, Returning to the Periphery?

Abstract

The liquefied natural gas (LNG) industry began as a means of making use of natural gas resources in socially remote regions and of natural gas associated with oil production. Natural gas was transformed from a waste product into LNG that could be moved thousands of miles to market, redefining “waste” as a valuable raw material. As the newest large‐scale LNG exporter, the United States entered the LNG industry based on another redefinition of nature: the extraction of natural gas previously economically and technologically inaccessible in shale formations. Hydraulic fracturing and new drilling technologies have created reserves of natural gas that are driving down prices with excess production and provoking a search for new markets via LNG exports. Liquefied natural gas is reshaping economies, communities, industries, and ecosystems in the United States and in other parts of the world. This article analyzes the role of the LNG industry with a particular focus on the economic and geopolitical consequences for the United States. The United States is returning to its historical role of energy exporter. Some view the return to this role as an economic and geopolitical boon that will enhance the U.S. economy and the nation’s global standing. A contrasting interpretation sees the United States sliding into the extractive periphery, serving the energy demands of a growing China, much like the United States once did for Europe and especially Great Britain. This view condemns what it views as the exploitation of U.S. natural resources to meet China’s energy needs while leaving large areas of the United States with depleted resources, damaged ecosystems, and disrupted communities.

The Dual Dependency of Natural-Resource-Rich Labor Markets in Contemporary Society

“…Focusing on globalization and the Amazon, Bunker (2003) argues there is a conflict between the economies of scale in contemporary capitalism and the increasing distance capitalists must transport materials for production. Known as the contradiction between economies of scale and diseconomies of space (Ciccantell 2020), this contradiction results in the development of cheaper and faster technologies for transport of commodities, the pursuit of technological innovation to replace raw materials, and the overall spatial expansion of commodity markets, to the detriment of local people and their economic prosperity.…”

The Dual Dependency of Natural Resource Rich Labor Markets in Contemporary Society

“…Focusing on globalization, Bunker (2003) argued that there is a conflict between the technological and organizational economies of scale present in contemporary industrial capitalism and the increasing distance materials must be transported for production and consumption as those economies expand. This is known as the contradiction between economies of scale and diseconomies of space (Ciccantell, 2020). This contradiction results in the development of cheaper and faster technologies for transport of commodities, the pursuit of technological innovation to replace raw materials, and the overall spatial expansion of commodity markets, to the detriment to local people and their economic prosperity due to unequal exchange, local exploitation, and a variety of other mechanisms (Bunker, 2003;Ciccantell, 2020).…”

“…This is known as the contradiction between economies of scale and diseconomies of space (Ciccantell, 2020). This contradiction results in the development of cheaper and faster technologies for transport of commodities, the pursuit of technological innovation to replace raw materials, and the overall spatial expansion of commodity markets, to the detriment to local people and their economic prosperity due to unequal exchange, local exploitation, and a variety of other mechanisms (Bunker, 2003;Ciccantell, 2020).…”

A review of sustainable project management practices in modern LNG industry initiatives

“…However, with advancements in liquefaction technology and the expansion of LNG infrastructure, its role has expanded to encompass a wide range of applications, including power generation, industrial use, and transportation fuel. The emergence of shale gas resources in North America has fundamentally transformed the LNG market, turning the United States into a major LNG exporter (Ciccantell, 2020. ).…”