Consequences of a Biden Admin for US Energy
A change of federal government would have several consequences for the U.S. energy industry, according to energy research and consultancy company Wood Mackenzie.
Some of the most important of these, according to Ed Crooks, Wood Mackenzie’s Americas vice chair, would be restrictions on oil and gas development and new hurdles for oil and gas infrastructure projects.
In a statement posted on Wood Mackenzie’s website, Crooks noted that there will not be a ban on fracking but highlighted that Biden has pledged to end sales of new leases for oil and gas development on public lands and waters. Onshore, the impact would be minimal but offshore, the effects would be more significant, although they would take some time to become apparent, according to Crooks. A ban on new leasing, if permanent, would mean that by 2035 U.S. offshore oil and gas production would be about 30 percent lower than if lease sales had continued, Crooks revealed.
The Wood Mackenzie representative outlined that decisions on federal permits for infrastructure projects would take into account their implications for greenhouse gas emissions and climate change, which he noted would create new hurdles for developers of oil and gas pipelines and export facilities.
A Biden administration would also provide a boost for offshore wind and support for electric vehicles, according to Crooks, who pointed out that Biden plans to impose tighter fuel economy standards, which will help sales of electric cars. By 2030 there could be four million electric vehicles on U.S. roads as a result of those standards, almost 60 percent more than if the Trump administration’s rules had taken effect, Crooks revealed.
The Wood Mackenzie vice chair projected that no quick relaxation of sanctions on Iran would occur as a result of a Biden administration. Crooks forecasted that negotiations about a possible renewed deal are not likely to begin until June 2021 at the earliest, after Iran’s elections, and emphasized that there is no guarantee that the two countries would reach an agreement.
To contact the author, email firstname.lastname@example.org
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.