How Will Biden's Victory Affect Oil?

While President Trump has yet to admit defeat, oil and gas analysts are looking forward and predicting what the Biden victory will mean for the industry. Early in the campaign, the Democrat rival made a controversial comment suggesting his administration would seek to “shut down” the oil industry. Republicans quickly seized the opportunity to target Biden and suggest a Democratic presidency would crush the North American oil and gas industry.

Responding to a question asked by President Trump regarding the shutdown of the oil industry, Biden responded, “I would transition away from the oil industry, yes. The oil industry pollutes, significantly. ... It has to be replaced by renewable energy over time.”

What a “transition” means for US oil and gas

Biden and his team were just as quick to clarify what the remark meant, claiming it referred to the phase out of fossil fuel subsidies, not the industry as a whole. To achieve its net zero emissions targets, Biden is adamant the United States needs to “transition” away from oil and champion cleaner and more sustainable alternatives.

Kamala Harris, Biden’s vice-presidential running mate also addressed the remark, reassuring voters Biden does not plan to shut down the oil and gas industry. "Let's be really clear about this," said Harris. "Joe Biden is not going to ban fracking. He is going to deal with the oil subsidies. You know, the president likes to take everything out of context.”

Trump administration accelerates drilling

In response to the Biden victory, there are reports Trump officials are now fast-tracking plans to drill in controversial sites before the new president is inaugurated. This includes an Arctic national wildlife refuge that’s home to polar bears, migratory birds and caribou. As well as being an environmental sanctuary, the refuge is also sacred to the indigenous Gwich’in people.

With Biden now set to become the 46th President of the United States, analysts are predicting a slow but steady transition towards sustainable energy. Rather than abruptly shut down the industry, Biden is more likely to scale back drilling on public lands, reduce pipeline project approvals and hold producers accountable for their emissions and environmental footprints.

Under the Biden administration, oil and gas producers can expect tighter legislations regarding emissions. Find out more about how new technologies are allowing producers to track and manage emissions in ‘Sulfur monitoring in oil refineries products.’ It spotlights the advanced dry colorimetric detection method being used to detect sulphur in liquid and gas hydrocarbons.