The United States oil and gas industry has seen record-breaking profits in recent years, despite President Biden’s environmental policies. Under Biden’s administration, the top five US-based oil and gas companies have made over $250 billion in profits between 2021 and 2023, a 160% increase compared to the first three years of the Trump administration. This profit surge has been attributed to factors like Russia’s invasion of Ukraine, increased travel demand after the pandemic, and advancements in technology that have boosted oil and gas production in the US.
The US Energy Information Administration reported that the US produced more crude oil in 2023 than ever before, surpassing the previous record set in 2019. Investors in the oil and gas industry have seen significant returns, with the Energy Select Sector SPDR Fund (XLE) up more than 100% since Biden’s inauguration. Big oil companies have engaged in dealmaking, with acquisitions totaling billions of dollars in recent months. Companies like ExxonMobil and Chevron have also implemented large-scale stock buybacks, drawing criticism from the Biden administration for prioritizing shareholders over increasing oil production.
While oil industry executives and shareholders have seen substantial gains, President Biden has pushed for a transition away from fossil fuels towards clean energy sources. Biden overturned many of Trump’s environmental policies and enacted measures to reduce greenhouse gas emissions, such as revoking the permit for the Keystone XL pipeline and implementing new tailpipe emissions standards. Despite these efforts, Biden faced backlash from climate advocates for approving a major oil drilling project in Alaska’s North Slope.
The Biden administration has been praised for making significant climate investments, but has also faced criticism for not fully aligning with the clean energy goals of environmental advocates. Oil industry experts note that the industry has prospered in the past decade, with a surge in profits and production, leading to what some describe as an oil industry renaissance. While Biden’s environmental policies have spurred some changes in the industry, global market dynamics and technological advancements have played a significant role in driving the oil and gas industry’s recent success.
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