Fri. Jul 12th, 2024

Oil corporations split on Trump

By nr39r Apr2,2024

During his time as president, Donald Trump made a commitment to establish “energy dominance” for the United States.

During the course of the election campaign, he used the slogan “drill, baby, drill” to characterize his energy policy.

However, according to interviews conducted with a number of business leaders at a recent energy conference held in Houston, a possible victory for Trump in the election of 2024 would not make oil and gas executives as thrilled as one might assume they would be.

There was a provision in President Joe Biden’s climate law known as the Inflation Reduction Act (IRA) that allowed fossil fuel companies to participate. President Trump has committed to dismantling this legislation. Companies that collect and store carbon dioxide are eligible for attractive tax credits under the law. These subsidies are being taken advantage of by a number of oil giants, despite the fact that they are pumping record volumes of crude oil and posting profits that are practically as high as they were from the past.

As an additional point of interest, President Trump has advocated for a trade policy that favors hefty taxes on imported goods, which is known as the “America First” approach. This approach has the potential to increase the costs of constructing new oil pipelines and other energy infrastructure, as well as the level of concern around the possibility of a global trade war.

Executives from the fossil fuel business, on the other hand, have voiced their disapproval of Vice President Biden’s decision to delay licensing of new liquefied natural gas exports. During the primaries for the Republican Party presidential nomination, oil barons contributed significantly more money to Donald Trump’s campaign than they did to any of his rivals.

Alan Armstrong, president and chief executive officer of Williams, a gas pipeline business, expressed his opinion that the results of a poll conducted among energy professionals regarding the election of 2024 “would be a little more balanced than people might expect.” Armstrong made this statement during an interview at the CERAWeek conference, which was organized by S&P Global.

According to Mr. Armstrong, a significant number of CEOs working in the fossil fuel business are of the opinion that the administration of Vice President Joe Biden has unfairly stigmatized their company due to the role it plays in climate change. On the other hand, he emphasizes that this is not a professional opinion but rather a personal viewpoint.

“If you ask people their opinion, they will probably tell you that they are tired of being told that they are bad people by the current government,” Mr. Armstrong said. “They are tired of everyone telling them that they are bad people.” In contrast, the portrait would be more balanced if it were viewed from a more objective and business-oriented perspective.

According to senior campaign officials and advisers to the former president and electric vehicles, Trump intends to eliminate the Individual Retirement Account (IRA), including its hefty tax incentives for clean energy, if he were to successfully return to the White House.

Despite this, a number of executives working in the oil business have expressed their gratitude to the IRA for assisting their companies in the development of green technologies that have not yet been demonstrated to be effective, such as hydrogen and carbon capture. Verdant. The chief executive officer of ExxonMobil, Darren Woods, stated during CERAWeek that the carbon capture subsidy has been especially beneficial to the corporation.

In his statement, Mr. Woods stated, “I was very supportive of the IRA, and I still am, because the IRA focuses on carbon intensity and, in theory, does not take technology into account.” The individuals in question are not attempting to impose any certain technology.

Additionally, the Independent Renewable Energy Agency (IRA) is “moving projects forward,” according to Vijay Swarup, senior director of climate strategy and technology at Exxon. In an interview, Mr. Swarup stated that Exxon has contracts to store captured carbon at an ammonia factory and steel mill in Louisiana, as well as a hydrogen plant in Texas that has not yet been constructed.

It goes without saying that Trump would not be able to reverse the IRA subsidies on his own. The passage of legislation by Congress would be necessary in order to accomplish this goal. This would mean that Republicans would need to maintain control of the House of Representatives and retake control of the Senate, in addition to assuming control of the White House.

According to Mike Sommers, the Chief Executive Officer of the American Petroleum Institute, the trade association would vigorously battle against any plan to reduce green subsidies that have been beneficial to the business in the event that those subsidies were eliminated.

Mr. Sommers believes that when we attempt to repeal the Irish Republican Army (IRA), which is something that will occur, we will end up using a more scalpel approach rather than a butcher’s knife approach. In addition, we will defend the laws that we are in favor of.

By nr39r

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