How will Biden's Presidency impact the US energy industry?

  • January 23, 2021 01:54 AM AEDT
  • Kunal Sawhney
    Kunal Sawhney
    CEO Kunal Sawhney
    2782 Posts

    Kunal Sawhney is founder & CEO at Kalkine and is a richly experienced and accomplished financial professional with a wealth of knowledge in the Australian Equities Market. Kunal obtained a Master of Business Administration degree from University of T...

How will Biden's Presidency impact the US energy industry?

Summary

  • The new US president signed the executive order to rejoin the Paris climate change agreement.
  • Biden has temporarily suspended the oil and gas leasing activities in the ANWR, in line with his campaign promise of banning drilling activity on public lands.
  • The clean energy revolution plan proposes to make the US a carbon-neutral economy by 2050.

Shutterstock Image

Joe Biden sworn in as the 46th U.S. president on Wednesday evening, just seven days after Donald Trump's allies declined to acknowledge the then incumbent President's defeat. 

On the very first day after taking the charge, the president signed the executive orders to rejoin the Paris climate change agreement. The president also revoked the Keystone XL oil pipeline license, which was intended to transport crude oil from Alberta in Canada to the Gulf Coast. Further, Biden temporarily suspended the ANWR's oil and gas leasing activities (Arctic National Wildlife Refuge).

Must Read: Trump a no-show as Biden swears in as U.S. president

 

Biden’s clean energy plan

 

Biden's clean energy revolution plan aims to achieve a 100% clean energy economy and net-zero carbon emission by 2050. The president also plans to invest in infrastructure that doesn't harm the environment. In addition to that, Biden also wants other nations to reframe domestic climate targets to avoid climate change’s effect on vulnerable communities.

Shutterstock Image

Biden’s climate and environmental justice proposal seeks to invest over US$1.7 trillion in the next 10 years while also taking additional local, private, and state investments to above US$5 trillion.

Battle of the clean energy plan

 

While Biden represents a US$1.7-trillion clean energy plan, which includes a proposal to install 500,000 EV charging points across the US by 2030, the plan also includes an allocation of US$400 billion towards R&D in clean energy by trimming down the subsidies on fossil fuels, and encourages nuclear energy for electricity generation. The Former president Trump's clean energy plan went into the vain after his inaccurate claim that the country's environment was in the best form in April last year.

Shutterstock Image

 

Biden plans to upgrade the vehicle emission standards. On the flip side, Trump had backtracked from Obama-driven vehicle emission policies.

Biden wants to engage the world in a climate mitigation plan. This was well supported by the president's action of rejoining the Paris Agreement on the first day of her oath ceremony. On the contrary, Trump pulled the US out of the global agreement.

Biden and the US Oil & Gas Industry

Biden wants to promote carbon capture, and storage (CCS) technology to effectively monitor and achieve the emission reduction goals. The CCS plan will be well supported by the penalty-driven process where the polluter will bear the full cost of the associated carbon emissions.

The US energy industry has already entered the transition phase towards low-carbon emissions. The government may ask the energy companies to adhere to the new standards on gas flaring, carbon footprints, and the overall environmental impact.

Good Read: Oil Price At 11-Month High As Dollar Weakens & Saudi Output Cut Plans

Shutterstock Image

Biden has pledged to stop new drillings on public lands, and a supporting decision was seen on the first day of his taking the office as he temporarily suspended ANWR leases. Biden's presidency may favour the Middle East countries, allowing them to regain the lost market share, which was partially captured by the domestic oil producers.

 


Disclaimer
The website https://kalkinemedia.com/au is a service of Kalkine Media Pty. Ltd. (Kalkine Media) A.C.N. 629 651 672. The principal purpose of the content on this website is to provide factual information only and does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) or engage in any investment activity under discussion. We are neither licensed nor qualified to provide investment advice through this platform. In providing you with the content on this website, we have not considered your objectives, financial situation or needs. You should make your own enquiries and obtain your own independent advice prior to making any financial decisions.
Some of the images that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed on this website unless stated otherwise. The images that may be used on this website are taken from various sources on the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image. The information provided on the website is in good faith, however Kalkine Media does not make any representation or warranty regarding the content, accuracy, or use of the content on the website.

 

   
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK