Many voters think of President Biden as a green energy champion who wants to put fossil fuels out of business. But if you look at the financial performance of oil and natural gas companies under Biden’s presidency, you might think he’s their biggest booster.

 

Energy has been the best-performing sector during much of Biden’s presidency, which is now fueling a mega-merger consolidation sweep among some of the world’s biggest energy companies. ExxonMobil announced plans to buy driller Pioneer Natural Resources for $64 billion on Oct. 11, prompting Chevron to bid $53 billion for Hess on Oct. 23. More deals are possible as huge energy firms hustle to lock in premier drilling sites as the point of “peak oil”—maximum global demand for the commodity, followed by a gradual decline — comes into view, perhaps within the next decade.

 

The Exxon and Chevron deals are both all-stock transactions. That’s possible because shares of America’s two largest energy firms have soared during the past two years, giving the acquirers plenty of headroom for big purchases without having to tap cash or borrow.

Big Oil has been thriving, of course, at the same time Biden is overseeing the biggest green energy push in American history. The 2022 Inflation Reduction Act Biden signed includes green energy incentives that could total more than $1 trillion. Private sector firms are applying for those incentives at three times the rate budgeters expected last year. One consequence is a boom in the construction of factories for electric vehicle components and other green energy gear.

This might sound like a set of schizophrenic developments in the US energy sector, with a jacked-up fossil fuel industry threatening Biden’s green energy push (or vice versa). But it’s not. Big Oil is enjoying a heyday now in part because it’s rebounding from lean times. And while Biden clearly favors renewables over carbon, he has also learned that ample stocks of fossil fuels will be needed for years to keep consumer energy costs down and prevent voters from revolting.

 

FULL STORY

 

 

As the article notes, from 2014 to 2020 oil and gas production increased and prices dropped because of fracking. Among other consequences of that was that several gas frackers, including Chesapeake, the biggest one, went bankrupt because of overproduction and the resulting low prices. Banks and shareholders have since pushed for discipline in the fossil fuel industry so that they don't chase after volume at the expense of profitability.

Gosh, I sure hope this isn't another one of those prescient articles like "The middle east is quieter than ever under Biden".

 

17 minutes ago, impulse said:

Gosh, I sure hope this isn't another one of those prescient articles like "The middle east is quieter than ever under Biden".

 

I wasn't aware at the Middle East was ever under Biden or any president for that matter. Thanks for the update.

19 minutes ago, impulse said:

Gosh, I sure hope this isn't another one of those prescient articles like "The middle east is quieter than ever under Biden".

 

And if this news makes you unhappy, just wait until you see the third quarter GDP report.