Climate Bill a Pressure Cooker for US Oil Sector

Copyright © 2021 Energy Intelligence Group

Stakes remain high for oil and gas interests in a Democrats-only budget package the party’s lawmakers are working to hash out in the US Congress. The bill is expected to become a vehicle for the bulk of Democrats’ climate and energy priorities, setting the oil sector on edge about what may get over the finish line. Among the possibilities oil companies are braced for are: a hotly contested methane fee for industry leakages; loss of longtime tax breaks favored by producers; a Clean Electricity Performance Program that could crimp future gas demand; new restrictions for drilling in federal territory; and a carbon price and carbon border tax. With a fight brewing among Democrats over pressure from party moderates to downsize the $3.5 trillion package and Senate lawmakers crafting their counterpart package behind closed doors, major questions surround what makes it into the final legislation. Timing also remains a major question, with some in Washington now seeing the timeline slipping deep into October.

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