What Joe Biden as US President means for American oil industry

Joe Biden has promised to put the United States on a track to net-zero emissions by 2050.The path will not be easy, with political divisions in the Un
...
US President Joe Biden (C) salutes as wife US First Lady Jill Biden (L) holds her hand on her heart on the east steps of the US Capitol. (AFP)
US President Joe Biden (C) salutes as wife US First Lady Jill Biden (L) holds her hand on her heart on the east steps of the US Capitol.

President Joe Biden on Wednesday announced America's return to the international Paris Agreement to fight climate change, the centerpiece of a raft of day-one executive orders aimed at restoring U.S. leadership in combating global warming.

The announcements also included a sweeping order to review all of former President Donald Trump's actions weakening climate change protections, the revocation of a vital permit for TC Energy's Keystone XL oil pipeline project from Canada, and a moratorium on oil and gas leasing activities in the Arctic National Wildlife Refuge that Trump's administration had recently opened to development.

Also check these Vehicles

Find more Cars
Mahindra Ekuv100 (HT Auto photo)
UPCOMING
BatteryCapacity Icon40 kWh Range Icon150 Km
₹ 8.25 - 10 Lakhs
Alert Me When Launched
Porsche 911 Gt3 (HT Auto photo)
Engine Icon3996.0 cc FuelType IconPetrol
₹ 2.50 Cr
Compare
View Offers
Mahindra S204 (HT Auto photo)
UPCOMING
₹ 12 Lakhs
Alert Me When Launched
Lexus Nx (HT Auto photo)
Engine Icon2494.0 cc FuelType IconMultiple
₹ 64.90 - 71.60 Lakhs
Compare
View Offers
Rolls-royce New Ghost (HT Auto photo)
UPCOMING
Engine Icon6750 cc FuelType IconPetrol
₹ 6.95 - 7.95 Cr
Alert Me When Launched
Mercedes-benz Amg E53 Cabriolet (HT Auto photo)
Engine Icon2999.0 cc FuelType IconPetrol
₹ 1.30 Cr
Compare

Also Read : US President-elect Biden to order agencies to revisit vehicle emission standards

The orders by the newly sworn-in president will mark the start of a major policy reversal in the world’s second-largest greenhouse gas emitter behind China, after the Trump administration pilloried climate science and rolled back environmental regulation to maximize fossil fuel development.

Biden has promised to put the United States on a track to net-zero emissions by 2050 to match the steep and swift global cuts that scientists say are needed to avoid the most devastating impacts of global warming, using curbs on fossil fuels and massive investments in clean energy.

The path will not be easy, with political divisions in the United States, opposition from fossil fuel companies, and wary international partners concerned about U.S. policy shifts obstructing the way.

"We got off track very severely for the last four years with a climate denier in the Oval Office," said John Podesta, an adviser to former President Barack Obama who helped craft the 2015 Paris Agreement. "We enter the international arena with a credibility deficit."

Biden's orders also require government agencies to consider revising vehicle fuel efficiency standards and methane emissions curbs, and to study the possibility of re-expanding the boundaries of wilderness national monuments that the Trump administration reduced in size.

While environmental advocates were thrilled by the orders, industry groups and conservatives criticized them.

Alaska's Republican Governor Mike Dunleavy mocked Biden's decision to shut down oil and gas work in the Arctic National Wildlife Refuge, saying the new president "appears to be making good on his promise to turn Alaska into a large national park."

File photo used for representational purpose.
File photo used for representational purpose.

The American Petroleum Institute, the nation's top oil and gas industry lobby group, said it believed blocking the Keystone XL oil pipeline was a "step backward."

"This misguided move will hamper America’s economic recovery, undermine North American energy security and strain relations with one of America’s greatest allies," API President Mike Sommers said.

HARD PART AHEAD

Global counterparts and climate advocates welcomed Washington’s return to cooperation on climate change, but expressed some skepticism about its staying power and its ability to overcome domestic political turmoil.

A group of Republican senators on Wednesday called on Biden to submit his plan to re-engage the United States in the Paris climate agreement to lawmakers for "review and consideration."

Trump withdrew the United States from the 2015 Paris deal late last year, arguing it was too costly to the U.S. economy.

Biden submitted the formal letter to the U.N. secretary-general re-entering the agreement on Wednesday evening, and it will enter force on Feb. 19.

Brian Deese, Biden’s director of the National Economic Council, told Reuters that the United States hopes to encourage other big emitters to also "push their ambition, even as we have to demonstrate our ability to come back on the stage and show leadership."

Pete Betts, an associate fellow at London-based think tank Chatham House who led climate negotiations for the European Union when the Paris deal was struck, said the United States will need to match its promises with financial commitments too.

The United States under Obama pledged to deliver $3 billion to the Green Climate Fund to help vulnerable countries fight climate change. It has delivered only $1 billion so far.

“The U.S. will need to put some money on the table, and also encourage others to do the same," he said.

Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape.

First Published Date: 21 Jan 2021, 08:21 AM IST
NEXT ARTICLE BEGINS

Check Latest Offers

Please provide your details to get Personalized Offers

Choose city
+91 | Choose city
Choose city
Select a dealer

Want to get the best price for your existing car?

Powered by: Spinny Logo
By clicking "View Offers" you Agree to our Terms and Privacy Policy
Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.