Biden’s Stance vs. Oil Drilling Projects: Will It Affect the Oil Industry’s Chances for Recovery?

While Democratic presidential candidate Joe Biden vows to push for policies that will bar new oil drilling projects, Trump resumed with his oil leasing projects.

Biden’s stance against increased oil production is in line with his plan to rejoin the global movement in addressing climate change; but, at the cost of losing support from the proponents of the oil industry. Trump on the other hand, wants to pursue ambitions of making America great again by dominating the global oil industry. After all, the incumbent U.S. president does not believe in the climate change phenomenon and has scorned scientists by calling their calls for global action as hoaxes.

Although Trump may be keeping the support of the gas and oil company, it’s quite apparent that he still does not understand the current challenges faced by the industry. The problem is not the supply but the reduced demand for crude products.

How Soon Can the Oil Industry Recover from the Collapse Caused by the Pandemic?

The reality is that the oil industry is hurting from the effects of the pandemic, when the worldwide disruptions in economic activities resulted in overflow of supply that was not met by demand. As a result, demand took a tumble, sending oil prices crashing down to even as low as $0 per barrel at the height of the coronavirus lockdown orders.

Although the price of oil has somehow recovered at a price of $40 per barrel, it still has not reached the industry domestic benchmark of $50 to $60 per barrel.

According to Enverus’ VP for Market Intelligence, Bernadette Johnson, their projection is that the crude oil market will be able to bounce bank to pre-pandemic levels by 2023, and only when the West Texas Intermediate crude oil reaches the domestic standard price per barrel.

The Oil Industry Already Negatively Affected While Yet to Face the Challenges Posed by Carbon Reduction Initiatives

What the pandemic has done was to handicap oil companies once they face the challenges posed by global initiatives for carbon reduction. While the industry estimates that it will take about at least three years to recover from the losses caused by the oversupply, countries supporting the climate change actions are also fast tracking on projects that will see to the reduction of demand for carbon-based fuel.

Regardless of what Joe Biden plans to put forward as policies in stopping oil production in the U.S., the effect if any, will likely be minimal. As it is, the country’s oil producers, particularly in New Mexico, a;ready have more than enough oil supply and acreage, to see them through during Biden’s potential 4-year tenure as new U.S. president.

Electricity And Natural Gas As Alternative Fuels

The oil reserves are dwindling, the environmental pollution is increasing steadily. Fossil fuels will not remain an option forever. Experts vie to find alternatives that are both economical and environmentally friendly. There have been numerous alternative fuels introduced to the market. So far, the most popular is the use of electricity and natural gas.

Electricity

Electricity is currently the most popular alternative to petrol and diesel. Every year the proportion of electric vehicles compared to diesel and gasoline vehicles is increasing. The infrastructure is also constantly improving. There are now almost twice as many e-filling stations as petroleum filling stations in Austria.

After all, electric motors do not emit a single gram of CO2 when in operation. There are environmental concerns only in the manufacture of the battery.

In addition, mineral oil (oils from petroleum, such as diesel and gasoline ) is a lot more expensive than electricity. A range of 100 kilometers with an electric car costs a total of 4.44 euros at an electricity price of 29.6 cents. 100 kilometers with a diesel vehicle at 1.25 euros per liter, on the other hand, costs 8.75 euros – almost twice as much.

However, electric cars also have their problems. The range is shorter and the charging times longer than that of a diesel or gasoline car. These may now be completely sufficient for everyday use, but not everyone is convinced. And as already indicated, the production is not entirely harmless.

But even these problems are getting smaller and smaller. Car manufacturers see the trend and are working on making electric cars more efficient and future-proof. And additional innovations are driving the advance of electric mobility.

An example: Researchers in Glasgow recently presented a new storage system for electric cars that can be used to charge the car with liquid electricity. This shortens the charging time so that it takes no longer than filling up with gasoline or diesel. And this liquid is also recyclable – so it’s great for the environment.

Natural Gas

Historically, vehicles powered by natural gas existed before gasoline or diesel vehicles. At times they were also very popular, especially at times when oil was scarce.

Like electric cars, natural gas was eventually rediscovered for environmental reasons. Compared to diesel, CO2 emissions can be reduced by around 10% and gasoline by 20%. Other emissions are also only emitted to a much smaller extent.

In addition, natural gas is particularly inexpensive. A kilo of natural gas costs just one euro, while diesel prices are 1.25 euros per liter and gasoline prices even 1.3 euros per liter. According to the manufacturer, consumption is also lower than that of diesel and gasoline engines. So you can drive 250 kilometers for just 10 euros. And, unlike electric cars, refueling is just as quick as with mineral oil.

However, the supply of natural gas cars is comparatively small and the purchase is slightly more expensive than a car with gasoline or diesel drive. Natural gas cars are also relatively maintenance-intensive. Leaks in the gas system or inexplicable jerking are quite possible in poorly made natural gas cars. (However, natural gas is not poisonous and leaks are harmless to health.) Problems such as rust can also often arise with the exhaust. However, you don’t have to worry about explosions. According to safety experts, natural gas cars are no more questionable than petroleum-powered cars.

Overall, natural gas is a very interesting and promising alternative. It is cost-saving in operation and very environmentally friendly. Unfortunately, there is currently a lack of infrastructure and public interest in this type of drive. In addition, it is also a fossil resource that will not last forever. Nevertheless, alongside electricity, natural gas is probably one of the most promising approaches for alternative fuels.

Learn more about other alternative fuels from documentary videos and movies which you can easily access at ​​https://tugaflix.club. You can also get find these documentaries from YouTube. Documentary videos and other educational videos are great tools to help you learn more facts about fuel, energy, and general science.