US oil and gas profits have tripled under Biden's presidency, although the industry criticizes him - FT

28 February 2024, 17:55 | Economy
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Profits at major US oil and gas producers have nearly tripled under Joe Biden's presidency, even as the industry criticizes the current leader's administration's " FT writes about this.

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The 10 largest U.S. carriers by value, which will finish reporting their 2023 earnings this week, have amassed a combined net income of $313 billion in the first three years of Biden's presidency, compared with $112 billion during the same period under Donald Trump in the White House..

The combined market capitalization of the group, which includes ExxonMobil, Chevron, ConocoPhillips, EOG, Pioneer Natural Resources, Occidental Petroleum, Hess, Devon Energy, Diamondback Energy and Coterra Energy, jumped 132% during the period to more than $1.1 trillion.. Their 2023 numbers are based on earnings reports, with the exception of Devon, which will release fourth-quarter data later.

US production has been breaking records in recent years: last November, oil production reached an unprecedented 13.3 million barrels per day, and natural gas exceeded 105 billion cubic feet per day for the first time.. Last year, the country overtook Qatar to become the world's largest exporter of liquefied natural gas..

Such performance under Biden underscores the White House's limited role in dictating the sector's fate.. Recent revenue growth is partly due to Russia's full-scale invasion of Ukraine, which has led to higher oil and gas prices. A strong rebound in global energy demand from the depths of the COVID-19 shock in 2020 also supported prices. The price of U.S. benchmark West Texas Intermediate crude averaged about $80 a barrel during the first three years of Biden's presidency, compared with $58 a barrel under Trump..

That flies in the face of Republican arguments that the Biden administration has stifled the industry and dire warnings that a Democratic presidential victory in November would jeopardize U.S. energy security..

Biden campaigned on the most ambitious climate platform of any US president in history, promising to lead a " Since taking office, he has enacted a series of policies that have enraged the industry, from temporarily suspending new fossil fuel leases on public lands to halting construction of the Keystone XL pipeline..

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However, he has shifted his initial rhetoric somewhat during his tenure, calling on the industry to produce more to counter high production prices and encouraging exports of liquefied natural gas to stem Europe's energy crisis.

To quell inflation, Biden has supported record production to keep oil and gas prices low, even prioritizing increased gas exports to help the EU. You can't do better than that as a Democratic president,"

However, the Biden campaign was reluctant to talk about the industry's successes, fearing a backlash from the progressive wing of the Democratic Party and was quick to criticize the operators.

When oil prices soared in 2022, the US president criticized Exxon for making " Last year, the administration imposed strict restrictions on offshore leasing and in January suspended permits for new LNG terminals, angering industry leaders.

American Petroleum Institute (API) Executive Director Mike Sommers said oil and gas producers' success over the past three years has occurred despite the president's "

" We're seeing new rules every week from this administration that I think could be very harmful,"

API sued the Biden administration this month over a decision to restrict offshore leasing, signaling an intensifying industry backlash against its climate and energy policies.

Trump and his surrogates have made support for the oil and gas industry a core part of their campaign, arguing that the sector's recent success rests on the deregulatory policies of the previous administration..

" The energy industry is reaping the rewards of the Trump administration,"

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In fact, analysts say the incumbent has little impact on the industry's short-term performance.

" These are rather fundamental things. I think the impact of the United States election on energy and climate policy is likely to be exaggerated and overblown,"

Trump has vowed to undo much of Biden's climate legislation if he wins in November, which some analysts say could damage the U.S. reputation abroad and also hit the country's energy exports..


Despite some industry concerns about Trump and his anti-free trade agenda, major oil and gas donors remain overwhelmingly supportive of the Republican Party. Republicans have received $126.4 million in industry donations since the start of the 2020 election cycle, compared with $23.6 million received by Democrats, according to OpenSecrets research..

US billionaire shale tycoon Harold Hamm, a Republican donor, told the Financial Times that a Biden victory would be " He believes the president is implementing policies that will lead to "

" [a Biden win] would be catastrophic,"

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The bitter election battle between Biden and Trump has had a dramatic impact not only on the allocation of aid to Ukraine, which is suffering from Russian aggression.

Biden's decision to suspend the issuance of licenses for unfinished and future liquefied natural gas export projects is considered by many experts to be pre-election and populist. But how will this decision affect the world market and, most importantly, will it lead to an increase in Russian gas supplies to Europe Find out the answers to these questions in the article by Oksana Ishchuk, executive director of the Strategy XXI Center for Global Studies, “Will Biden Return Russia’s Gas Dominance in Europe?

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