[ad_1]
Original title: Biden is elected president, will the United States lose 3 million barrels of crude a day?
reporter Peng qiang
As Democrat Biden won more than 270 electoral votes, mainstream US media reported that Biden will win the presidential election.
Biden is inclined to strengthen oversight of the oil and gas industry and ban hydraulic fracturing, which is not good news for the oil and gas industry.
Successive US presidents have hoped the United States can achieve oil self-sufficiency. Especially during the Trump administration, he has vowed to maximize America’s oil and gas production. The United States has become the world’s largest energy producer, with oil production exceeding that of Russia and Saudi Arabia.
According to data from the US Energy Agency, US crude oil production increased 11% in 2019, reaching 12.23 million barrels per day, setting a new record.
But Biden advocated banning the issuance of new fracturing operating permits in land and waters under the jurisdiction of the Federal Bureau of Land Management to respond to global climate change.
The area administered by the Federal Bureau of Land Management occupies most of the land in the Permian Basin. This part of the land stretches across New Mexico and Texas and is the largest shale oil and gas production area in the world.
According to official US statistics, in 2019, nearly 3 million barrels of crude oil and 13.2 billion cubic feet (approximately 373 million cubic meters) of natural gas were produced within federal lands and waters. of the United States in 2019. Crude oil production in this region accounts for about a quarter of the national production of the United States and 3% of world oil production.
Last year, world oil production was about 100 million barrels per day.
According to CNBC reports, Biden has since claimed that he will not ban hydraulic fracturing entirely. But Biden’s opponents say that Biden will support a more progressive faction in the Democratic Party that wants to end the era of fracking.
According to Bloomberg, executives from companies such as Marathon Oil Company, Pioneer Natural Resources Company and Energy Transfer Company have expressed some concerns. Lee Tillman, CEO of Marathon Petroleum Company, said that after Biden is elected, it will be more difficult to do business on land managed by the federal government. Under the leadership of the new government, there will naturally be new regulations, but oil and gas producing areas like New Mexico also have established Interests that you need to protect.
CNBC reported that Biden’s energy plan included $ 2 trillion in clean energy investments, but did not stop oil and gas production. Analysts noted that the Biden administration can strengthen oversight of the oil and gas industry by restricting methane gas emissions.
Daniel Yergin, vice president of IHS Markit, a global information provider, believes that the Biden management will not and does not ban hydraulic fracturing.
“Oil production is regulated by the states and Biden cannot prohibit hydraulic fracturing operations in any way.” Daniel Yergin said the Biden administration made it clear that they are inclined to strengthen regulation across the board, especially in the energy sector.
Daniel Yergin believes that Biden himself has realized that, from a foreign policy perspective, America’s current energy position is powerful.
Helima Croft, director of global commodity strategy at the Royal Bank of Canada, noted that the Biden government can see natural gas as an important bridge to the transition to clean energy and reducing coal use. Natural gas can be considered as an important export product, which will also help Europe provide new options outside of Russian gas.
Reuters noted that if Biden finally takes power, OPEC member countries Iran and Venezuela could get rid of US sanctions and the two countries will restart oil production.
Previously, the Trump administration led unilateral sanctions against Iran and Venezuela, resulting in a reduction of 3 million barrels per day of oil production in these two countries, more than 3% of the world’s oil supply.
In recent years, Trump has influenced OPEC policies through phone calls with Saudi Arabia and other leaders, or tweets, and has affected the global crude oil market to varying degrees. Trump advocates keeping oil prices low.
Reuters noted that Biden may not be as involved in OPEC production policy as his predecessor Trump.
With regards to climate change, the Biden administration may seek to rejoin the Paris Climate Agreement. Earlier, Trump decided to withdraw because he claimed the deal would hurt the US economy.
Biden stated earlier in his election campaign that the US energy industry will achieve net zero carbon emissions by 2035; In 2050, total U.S. carbon emissions will fall to net zero.
Biden believes that climate change is an existential threat to the world. If the United States can quickly become a leader in clean energy, then reforms that start with fossil fuels will be a great economic opportunity for the United States.
European oil and gas companies, including BP and Royal Dutch Shell, have begun implementing clean energy transitions to varying degrees. However, US oil companies such as Exxon Mobil and Chevron remain highly optimistic about the prospects for fossil fuel development.
Reuters noted that US President Trump has granted these companies political asylum to some extent.
Bloomberg reported that wind power andSolar energyThe price of electricity continues to fall and more and more consumers are choosing renewable electricity. Engie, a French energy company that develops wind and solar projects in the United States, is optimistic about Biden’s policy.
Engie CEO Michael Webber said that no matter who is elected president, the growth of renewable energy will continue.
The “Washington Post” noted that Biden will begin restoring dozens of Trump-abolished environmental protection measures and launch the most daring climate change plan in history. Although this plan has been strongly rejected by Senate Republicans and conservative attorneys general, the United States is ready to make comprehensive changes to climate change and environmental protection.
Massive information, accurate interpretation, all in the Sina Finance APP
Editor in Charge: Xue Yongwei
