Net-Zero Emissions: How Biden will put a damper on US Oil Industry?

Joe Biden has taken the office as the 46^th President of the United States and he has promised to put America on a track to net-zero emissions by 2050 to match the steep and swift global cuts.

Environmental Experts say that they are needed to avoid the most devastating impacts of global warming, using curbs on fossil fuels and massive investments in clean energy.

In his speech he also announced to return to the international Paris Agreement to fight climate change. His new announcements also included a sweeping order to review all of former President Donald Trump’s actions weakening climate change protections, the cancellation 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.

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 denounced climate science and rolled back environmental regulation to maximize fossil fuel development.

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

US Crude Oil Update

U.S. West Texas Intermediate (WTI) crude futures fell 27 cents, or 0.5%, to $53.04 a barrel following two days of gains on hopes of massive coronavirus relief spending under new U.S. President Joe Biden.

Brent crude futures similarly dropped 26 cents, or 0.5%, to $55.82 a barrel.