Houston Pipeline Executives Warn of Rare Earth Minerals Imbalance

Executives from Houston Pipeline and LNG warned about the imbalance in rare earth minerals, and the two Houston executives with closer ties to natural gas spent a large part of their discussions focusing on another natural resource.

Charif Souki, executive chairman of liquefied natural gas company Tellurian's, and Jim Teague, co-CEO of Houston pipeline company Enterprise Products Partners, discuss China's near-dominance in rare earths and urge the U.S. to take action.

"The transition from fossil fuels to green energy can be chaotic, with skyrocketing prices." Souki said, "If we don't invest in energy, we will pay the price globally."

One area where the United States has fallen behind is in the production of rare earth minerals used to produce electric cars and wind turbines, he said. China controls as much as 85 percent of the market for rare earths, according to the Center for Strategic and International Studies, putting the United States in a difficult position when it comes to getting rid of its own abundant fossil fuels.

"Are we trading our energy independence for dependence on metals like copper, nickel, cobalt and lithium?" Teague asks, "Are we trading our independence for dependence on China?"

In the coming decades, the world will need more rare earths to meet the world's climate goals. According to a May report by the International Energy Agency, control over the global supply of these minerals could pose a risk to energy security that governments must address now.

Houston Pipe Line Company LP was founded in 1925. The Company's line of business includes the transmission and storage of natural gas. According to the International Energy Agency, a typical electric car requires six times more rare earth minerals than a car powered by fossil fuels, and an onshore wind project requires nine times more mineral resources than a natural gas-fired power plant producing the same amount of energy.

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