U.S. Oil Industry Group Pledges to Fight Possible Biden Fracking Limits

November 25, 2020

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By Laura Sanicola (Reuters) If U.S. President-elect Joe Biden tries to restrict development of oil and gas drilling on federal lands, the American Petroleum Institute (API) will use “every tool at its disposal” including legal action, chief executive Mike Sommers said in an interview with Reuters on Monday.

Biden has said he supports a ban on new gas and oil permits — including fracking — on federal lands.

Fracking, or hydraulic fracturing, is a drilling technology that has allowed the U.S. oil industry to vastly boost output in recent years, making the United States the world’s largest producer of crude oil. Environmental groups oppose fracking, saying it pollutes groundwater and exacerbates climate change.

Sommers said the API looks forward to working with the incoming Biden administration on energy, but would “draw the line” if Biden implemented restrictions on lands that were “always meant for multi-use.”

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Biden has vowed to take actions including requiring “aggressive” methane pollution limits for new and existing oil and gas operations.

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He (Sommers) also said he sees a possibility of alliance with labor unions and biofuels groups on policies supporting vehicles that use the internal combustion engine. READ MORE

Biden win may curb U.S. oil drilling, supercharge renewables (Bloomberg/Los Angeles Times)

Pandemic briefly reversed U.S. status as net oil exporter (Washington Examiner)

Liquefied Natural Gas Exports Are a Climate Threat (NRDC)

US Exported Natural Gas Could Worsen Climate Change (Our Daily Planet)

Excerpt from Bloomberg/Los Angeles Times: To be sure, Biden’s proposal to curb production on federal lands could have a positive effect on prices by trimming supply expansion. Stimulus spending to revive the economy could also boost demand for fossil fuels in the shorter term.

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Biden’s climate plan doesn’t mention liquefied natural gas. Still, the construction of new pipelines and LNG terminals in the U.S., which has emerged in the last few years as a major global exporter of LNG, could face higher scrutiny should Biden be able to form a Democratic majority on the Federal Energy Regulatory Commission, which oversees the construction of energy infrastructure.

U.S. LNG exporters could eventually benefit in one way under a Biden administration: If his administration succeeds in its efforts to reduce emissions from America’s shale fields, that may attract climate-conscious buyers in Europe. Similarly, a thaw in U.S.-China relations could give U.S. exporters greater access to a major world market.

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A Biden victory could mean a halt to the Environmental Protection Agency’s granting of refinery waivers for the U.S. Renewable Fuel Standard, which in turn could help stabilize prices and demand for fuels made from corn and soybeans. The standard also will reset for biofuel use in 2023, meaning the EPA will help decide how much ethanol and biodiesel are mixed into petroleum-based fuels in the U.S. Biden could keep blending targets near current levels or raise them to prevent plants from shutting down, even as his administration looks to transition away from an oil-based vehicle fleet. READ MORE