Yergin: US Shale Will Grow under Biden’s Rule

“There are a lot of economic advantages from shale production and some foreign policy advantages,” says IHS Markit Vice-Chairman and energy guru Daniel Yergin. “And Joe Biden is a foreign policy person.”

Yergin: US Shale Will Grow under Biden’s Rule

Additionally, Yergin said an energy transition away from fossil fuels won’t happen overnight. (Source: Daniel Yergin speaking at an event in 2017. Tolga Sezgin / Shutterstock.com)

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. 

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Faiza Rizvi

Faiza Rizvi is a senior editor of ESG for Hart Energy's editorial department, with a strong focus on E&P Plus and HartEnergy.com. She has been covering all facets of the U.S. and international energy industry for over 5 years.