Biden Win May Curb Oil Drilling, Super-Charge Renewables

Biden’s victory could end up reshaping the U.S. energy sector in years to come, although the president-elect may have limited room to maneuver given that control of the Senate remains unclear.

The president-elect has pledged to spend trillions of dollars to speed up the transition from fossil fuels, slash emissions and curb climate change. Biden has also promised to ban new fracking on federal lands, which he may try to achieve via an executive order. Such a move would limit shale companies’ operations in several states, including New Mexico.

Oil & Gas

Biden’s electoral win adds to the hurdles facing the oil and gas industry, already hammered by a crash in demand amid the pandemic. The Democrat is expected to block new drilling permits on federal lands, something he could do via an executive order. His move to clamp down on the industry’s emissions would reverse the Trump administration’s relaxation of environmental regulation, and likely increase the cost of producing, transporting and processing hydrocarbons. Biden’s target for a 100% clean electricity grid by 2035 could squeeze natural gas’s share of power generation, and his aim to boost electric vehicles sales would erode demand for gasoline and diesel.

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{Matzav.com}