U.S. shale producers may feel under attack following the flurry of executive orders by U.S. President Joe Biden aimed at the industry, however, IHS Markit Vice-Chairman Daniel Yergin still sees a bright future for the sector under the new administration.
In his first week in office, Biden ordered the suspension of leases for fossil fuel development on federal lands and offshore waters plus a review of leasing and permitting practices. In addition to scrapping a permit for the Keystone XL oil pipeline, he also asked Congress to eliminate fossil fuel subsidies.
Still, although these initiatives might have alarmed the oil and gas industry, Yergin believes the U.S. shale market offers several benefits to the economic and foreign policy of the country. Because of which, the Biden administration will be hesitant to take strict measures to curb domestic oil and natural gas production, he said speaking earlier this month at the opening plenary session of the virtual Baker Hughes Annual Meeting 2021.