US oil and gas sector stays strong under Biden for now

Significance

President Joe Biden has adopted a gradual approach to replacing fossil fuels with renewable resources, but a second term would see him under greater pressure to address record levels of US oil and gas production. The sector would likely benefit from a second Trump administration.

Impacts

• The US LNG expansion will aid coal-to-gas switching, predominantly in Asia, while encouraging a wider use of natural gas elsewhere.
• A desire to attract blue-collar votes in specific states may soften Biden’s environmental agenda during the election period.
• A second Trump administration would be unlikely to derail the success that the oil and gas sector has enjoyed under Biden.