Consequences of a Biden Admin for US Energy



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.

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 andreas.exarheas@rigzone.com



WHAT DO YOU THINK?


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Jim Baker  |  November 13, 2020
Not a Biden fan, but just for thought; Re-regulating the industry, decreased production, no near term oil back on the market from Iran, and ( just a hunch) new embargo’s on Russian prod. 65-70/oil ?
Lyle Summerfield  |  November 11, 2020
Well, there goes the good jobs.! You need to read " The rise and fall of the Third Reich" It's the play book of the Democrats. Hitler was a National Socialists Of The German Workers Party Leader. SOS.
Robert Davis  |  November 10, 2020
Get ready to pay higher gasoline prices once a lot of these wells get shut in/plugged for "methane abatement" costs,
Cara m.  |  November 10, 2020
subsidisation ,regressive taxation heavy regulation to force behaviors, living standards on a populous is the stock & trade of the progressives,irregardless if it is logical or not.
Walter Schwamb  |  November 09, 2020
As most note oil prices are impacted on a global level. As much as fears of what a Biden/Harris may bring a pandemic, economic recession and increase production from producing countries is critical
Dave Raami  |  November 09, 2020
The phrase "Turkeys voting for Christmas/Thanksgiving" springs to mind. Biden, or should I say Harris, is the worst case scenario for US O&G. At the time of writing, the Dems haven't been declared winners but, voting malarkey and shenanigans aside, if the result stands, you should be afraid, very afraid.