Biden's new energy plan aims to reduce oil production and boost prices

Biden's new energy plan aims to reduce oil production and boost prices
The Siliconreview
17 March, 2021

President of the United States, Joe Biden, whose nine-point plan he had during his election campaigning will be put into action. This plan will benefit the oil producers and also will increase the usage of renewable sources of energy. Meanwhile, it will also not reduce the American demand for oil and gas; hence it will benefit the oil industry. Biden's moratorium on new oil and gas leases was one of the factors that pushed oil prices higher at the beginning of this year.

Biden's administration now aims to focus on Saudi Arabia's oil sector to extend its voluntary oil production cuts to improve the supply of oil to the US. Biden's team has stated that it will provide job opportunities in clean energy and infrastructure in his energy plan. For instance, some of the job opportunities will be transferable from the oil and gas industry to solar and wind.

Biden aims to grow the renewable energy and clean energy sector by bringing in innovative developments and developing infrastructure. He is also planning to improve Electric vehicles and the power generation sector over fossil fuel cars and power plants. This shale revolution will lead toa surge in oil and gas independents, and there will be an increase in the oil price.