The U.S has risen the ranks to become the world’s largest oil and gas producer. In 2019, U.S energy exports hit an all-time, marking the first time in 67 years that gross energy exports have exceeded gross imports.
Booming U.S Energy vector
The development comes at the backdrop of the current administration focusing on deregulation of fossil fuels. The U.S has backed down on regulations designed to curtail the use of fossil fuels helping offer support to exploration and production of oil and gas.
Innovation in the oil and gas industry has also gone a long way in boosting productivity. For instance Liquefied natural gas production has increased five hold thanks to innovation in the exploration process. Texas and Permian Basin continue to fuel the shale oil boom making the U.S a net exporter.
Policy Change Concerns
Ahead of the hotly contested elections in November, the U.S oil and gas industry is yet again on the spot as the industry remains wary of policies that might come into play should there be a regime change. Initially, there were fears that, Joseph Biden, the Democratic Party presidential candidate, winning the elections would be bad for the U.S oil and gas industry.
However, that appears not to be the case. While Mr. Biden has already won environmentalists and liberals given his plan for the energy sector, he is also earning praise from the oil and gas industry on equal measure.
Biden has already unleashed a $2 trillion plan that seeks to promote energy efficiency, electric vehicles, and other policies. In addition, he has confirmed plans to plot the path for net-zero greenhouse emission by no later than 2050. Biden has received praise in the oil and gas industry, on his $2 trillion plan, not including a ban on hydraulic fracturing. The process is at the heart of fuelling the production of oil and gas.
Oil and gas industry executives are especially enthusiastic about Biden plans to invest in Carbon capture sequestration, designed to ensure greenhouse emission does not reach the atmosphere. If implemented, the approach will allow the oil and gas industry to continue burning fossil fuels rather than imposing a total ban.
