Analysts polled by CNBC predicted years of fear under the new president for American oilmen, who develop mainly shale deposits. Joe Biden .
Biden’s environmental policy should be a cause of concern in the industry. The President-elect supports initiatives aimed at reducing carbon dioxide emissions. They are collectively called ESG (Environmental, Social and Corporate Governance).
According to the current US Secretary of Energy Dan Bruyette, the positions of politicians who support this position are strong in Congress. All of them, like Biden, advocate tighter regulation of the oil industry, the introduction of new standards for producing companies, especially those working on the shelf.
All this may lead to the fact that the United States will lose its position as the largest oil producer in the world, achieved in 2018 thanks to shale companies. They are now likely to find it more difficult to raise finance as investors look wary of the industry facing challenges and opposition.
One of the largest investment funds in the world, the American BlackRock, in recent years has been trying to build its portfolio based on the principles of ESG, which reduces the likelihood of investing in the securities of oil workers and oil traders.
However, market participants should be more wary of the new administration, which may pass laws restricting the development of most of the restrictions, experts warn.