At the end of last year’s US elections, presidential candidate Joe Biden declared that “it does not ban hydraulic fracturing in Pennsylvania or elsewhere.”
Not only did President Biden keep his promise, but the response to a similar rally that marked Franklin Roosevelt’s first term in 1933 led to a surge in equity oil and gas development companies in the first months of his administration. did. Reason.
The Democratic Party, along with the moderate end of the environmental movement, has effectively helped save the US fossil fuel industry from overbuilding and overproduction.
Since the inauguration of Biden, the S & P Oil and Gas Exploration and Production Index has risen by about 35%. Cher Peak Oil and Gas, a shale pioneer that accounts for about 45% of Pennsylvania’s production, finally went bankrupt in June last year (under the Trump administration). Since its re-emergence in February, Chesapeake’s debt-reducing shares have increased by about 25%.
Another Pennsylvania scammer, Range Resources, has increased its share by 125% this year. EQT, a gas producer in Pittsburgh, Pennsylvania, has increased by about 75%. Williams, a well-established pipeline, collection and processing system in Pennsylvania and other northeastern states, has seen its share price rise by about a third as Trump-supporting demonstrators did not take over the Capitol.
It was suitable for both Trump and Biden campaigns for Democrats to undertake the color of anti-fossil fuel activists. Trump stirs up his support in rural areas of cheap fossil fuels, and Biden maintains various green factions on his side.
Biden promises Green to stop issuing new fossil fuel leases on federal land, Carry that ouBy presidential order. However, it did not affect Pennsylvania’s flaker, as there was little drilling on federal land in the state. The fossil fuel is mainly produced on private land, which, by the way, helps to lay the foundation for general support for the industry.
Oil and gas production on federal lands is predominantly on the western states and the Outer Continental Shelf. Fossil fuel drillers are always looking for undrilled land, but in recent years the industry has been more constrained by investors’ demands on free cash flow rather than a shortage of assets.
The true nightmare of a driller is the same that he faced in the years leading up to 1933. Overproduction. In the 1920s and 1930s, it was created by a huge new Texas field that was overrun and overdrilled by independents. For just the last decade, the hydraulic fracturing industry has faced ruin with cheap production from the Marcelus gas region, which stretches across the Appalachians from Pennsylvania to Ohio to West Virginia.
Producers in the western states found it difficult to compete with the vast and abundant gas resources of play in Marcels and neighboring Utica.
All the Marcellus flakers needed were some new pipelines for getting gas out of it. However, after the eastern pipeline network first expanded, producers encountered irreplaceable opposition from local environmentalists, renewable energy enthusiasts, and their democratic allies.
This was very frustrating for Fracker, who was already under financial pressure. Their instinct was to produce more hydrocarbons to make up for their lack of income, like their predecessor in Texas in 1932.
Roosevelt was not a natural ally of the oil industry. However, in the face of the predicament of the oil industry in 1933, his administration banned the interstate transport of overproduced or “hot” oil. Oil prices, jobs, industry sales and profits have all risen.
In recent years, the cash flow pinch has been due to interstate transportation of gas rather than oil, but regulation has once again helped stabilize industry interests. Luke Jackson, an analyst in the pipeline industry at S & P Global, said: “If there were no restrictions on the pipelines built in the northeast, it could generate $ 2.50 (per million British thermal units or mmbtu) instead of $ 3.”
And the fossil industry has begun to see future benefits since facing the reality of an environmentally friendly democratic regime. If the public wants hydrogen fuel, fossil fuels and pipeline companies are the most likely producers. California has the highest prices in the world for carbon recovery and storage.
Life as a regulated oligopoly may be more comfortable if it isn’t more fun than a fossil fuel excavator pirate ship.
Biden’s green push delivers boost to fossil fuel companies Source link Biden’s green push delivers boost to fossil fuel companies