US President-elect Joe Biden’s energy policies are focused on making a green transition, which could side-line the oil and gas industry in the US. Verdict has conducted a poll to assess the impact of the policies on the industry.
A majority of 48% of the poll respondents opined that if Joe Biden becomes the US president, his energy policies may limit fracking, while 27% anticipated restrictions on gas flaring to be imposed.
A minority of 13% of the respondents expect a possible ban on oil and gas exports, while 12% of the respondents voted that curbs on offshore drilling may be imposed.
The analysis is based on 153 responses received from the readers of Offshore Technology, a Verdict network site, between 28 September and 17 November 2020.
Impact of Joe Biden’s energy policies on the US oil and gas industry
US President-elect Joe Biden’s climate and energy plan is a complete opposite of Donald Trump’s oil-centric approach. While Biden has not openly spoken against the oil and gas industry, his policies seem to favour clean energy transition and increasing regulations on the industry, says GlobalData.
Experts from the oil and gas industry fear that Biden may impose a range of regulations on the industry including limiting gas emissions and banning fracking, says GlobalData, adding that his policies may not be completely detrimental to the industry.
Biden may use regulations to increase shale production costs, cut methane emissions and impose a carbon tax similar to that in Europe. He may also impose restrictions on oil and gas activities in the Arctic National Wildlife Refuge in addition to public lands and waters.
While Biden’s policies have been hailed by clean energy experts, enacting them may pose hurdles due to the system of checks set by the Congress and the judicial system.