Sorry to sound like a broken record, but if you know me, you’ve heard me say it a few times…..“to make renewable/clean energy more attractive, fossil fuels must get more expensive”
It appears the Biden policy is already working…..With Trump on his way out, Saudi Arabia unilaterally cut production by 1.0 million barrels per day in the months of February and March. The move enriched the country and has been a major factor in crude oil’s most recent seven-day oil price rise that drove the price back over $53 a barrel. The value of Saudi assets will rise, enriching the Kingdom while U.S. producers will not be able to fully take advantage of the price increase because of uncertainty about regulation in the future and fears about capital.
U.S. producers racked up a lot of debt during the COVID-19 demand crash and now banks are more reluctant to lend them money — not only for economic reasons but because of political correctness and pressure by investors to go green. Moody’s reports that North American oil exploration and production companies have about a billion in debt that will mature between now and 2024, and pipeline companies have an additional $123 billion in debt coming due over the same period.