What Could Drive Biden’s Energy Policy—Agunbiade


By Ahmed Rahma

An expert in subsea engineering and director at the National Oilwell Varco based in Houston, Texas, USA, Dr Babajide Agunbiade, has highlighted three-point agenda that could drive the US president-elect, Mr Joe Biden’s energy policy.

Mr Agunbiade, while responding to the question of what will be the future of US oil and gas industry with Mr Biden at the helm of affairs, stated that clean energy innovation and the pursuit of zero-emission are expected to form the pivot of the incoming US government’s energy policy.

He listed the three key focus of the incoming president as an irreversible path to achieve economy-wide net-zero emissions by 2050, a drive towards a historic investment in clean energy and innovation, and aggressive methane pollution limits for new and existing oil and gas operations.

“While Trump had sought to maximize domestic oil and gas production within the United States, Biden will ban the issuance of new drilling permits on federal lands and waters to fight global climate change,” he said.

He argued that part of the broad agenda will include developing rigorous new fuel economy standards aimed at ensuring 100 per cent of new sales for vehicles which will be zero-emissions; protecting America’s natural treasures by permanently protecting the Arctic National Wildlife Refuge and other areas impacted by President Trump’s policy on federal lands and waters including also the banning of new oil and gas leasing on public lands and waters.

According to data from the Interior Department, the US produced nearly 3 million barrels of crude oil per day from federal lands and waters in 2019, along with 13.2 billion cubic feet per day of natural gas, saying “that amounts is about a quarter of total domestic oil output and more than an eighth of total US production of gas. A federal ban on new permits would mean those numbers trend toward zero over a matter of years.”

“I foresee that without the political sheltering by Trump’s leadership in Washington, the US majors like ExxonMobil and Chevron that have remained focused mainly on the traditional energy business will begin implementing strategies for a global energy transition more like European oil and gas companies like BP and Royal Dutch Shell.

“The implication for Sub-Saharan Oil and Gas production is that with renewable energy taking the more central stage during the Biden administration, fossil fuel demand will continue to decline, leading to reduced drilling, production, and exploratory activities,” he added.

Mr Agunbiade emphasised that there would be an impact on global and the US public revenues as oil and gas production generated about $12 billion in public revenue in 2019, divided between the US Treasury, states and counties, tribes, and clean up funds.

Citing Wood Mackenzie, 2020, Mr Agunbiade posited that there are potential legal implications as upstream producers have already invested billions of dollars into exploration and development projects.

The expert mentioned that, “In US GoM alone, companies have invested over $180 billion since 2005 in drilling and exploratory activities on the land the Biden government is looking to ban. There would be removing subsidies for fossil fuels, which, some environmentalists say, inject roughly $20 billion into the industry annually.”

He also noted that there would be an emphasis on low or zero-carbon energy production, green industry manufacturing, and more climate-friendly regulations with an optimistic view on the future of renewable energy and there will also be generous government research grants to renewable energy start-ups.

“The solar and wind producers will enjoy munificent tariffs, and, hopefully, the nuclear industry and fusion pioneers. Potential job loss may occur in areas that traditionally rely on oil and gas employment.  However, this could be balanced out by Biden’s plan that would create millions of new jobs.

“There is a further decrease in global demand for hydrocarbons due to renewable energy options coming to play, which will impact the already volatile oil prices,” he said.

Concluding, Mr Agunbiade stressed that it will be imperative for the incoming federal government to maintain a balanced curve in passing relevant energy legislation.

He proposed that the oil and gas industry still maintains a reliable place in annual revenue generated and that Mr Biden’s proposals could bring about some of the most substantial deviations that the US offshore industry has ever seen.

“After all, not every President has fully stuck with their pre-election promises. The fact that Biden mentioned that he wouldn’t end fracking could be a good omen and some light at the end of the tunnel for the USA oil and gas industry,” Mr Agunbiade said.

Related Stories

Global Food Prices Record Fall in August 2023

By Adedapo Adesanya The prices of food globally dropped to 121.4 points in August, 2.1 per cent lower than the 123.5 points from July, reversing the rebound registered last month and pushing the index as much as 38.3 points (24.0 per cent) below its peak reached in March 2022. This is according to the latest figure by the Food and Agriculture Organisation (FAO) on Friday, which showed that the drop reflected declines in the price indices for dairy products, vegetable oils, meat and cereals, while the sugar price index increased moderately. The FAO Cereal Price Index averaged 125.0 points in


The 6 Most Essential Kilimanjaro Stuff Things

In the event that you’ve seen our stuff show, you realize there are heaps of things on it. The rundown contains discretionary, suggested and required things. However the expected things are required, there are things that are more critical than others with regards to your security, solace, and achievement. In this article we examine the 7 most significant things on the Kilimanjaro gear list. For more information check Africa Joy Tours  With regards to choosing these pieces, you need to be particularly careful that they will finish the work. Knit cap You might have heard the familiar maxim that you


Military Officers Oust Ali Bongo in Gabon Coup

By Adedapo Adesanya Gabon has become the latest African country to experience a military takeover as military officers appeared on television on Wednesday night, announcing they were putting an end to the current regime and cancelling an election that saw President Ali Bongo Ondimba win another extension to his rule. Mr Bongo’s whereabouts are unknown, according to reports as of press time. While announcing the cancellation of the vote results, one of the officers said “all the institutions of the republic” had been dissolved. The address was read by an officer flanked by a group of a dozen army colonels,

More Stories

NSE CEO Roundtable on Gender Equality Holds February 2

By Aduragbemi Omiyale On Tuesday, February 2, 2021, a workshop to promote gender equality among listed companies will be hosted by the Nigerian Stock Exchange (NSE). The event is in collaboration with International Finance Corporation (IFC) and will bring together Chief Executive Officers (CEOs) and C-Suite Executives of NSE 30 Index Companies to a roundtable discussion to highlight outcomes of a recently conducted survey Gender Implications of COVID-19 on Private Sector Companies under the Nigeria2Equal Programme. In addition to the roundtable discussion to be facilitated by the CEO of NSE, Mr Oscar Onyema, the virtual seminar will also feature a


UACN Property to Slash N20.8bn Debt to N4.8bn

By Adedapo Adesanya The management of UACN Property Development (UPDC) Plc has announced plans by the company to reduce its current debt obligation of about N20.8 billion to about N4.8 billion. Addressing some analysts and members of the media, including Business Post at the Exchange on Tuesday in Lagos, the CEO of UPDC, Mr Folasope Aiyesimoju, stated that this was one of the main reasons for the firm’s N16 billion rights issue, which is to be used to refinance its short-term debt and reduce finance costs. He said the optimal performance of its recapitalisation through this right issue will see


Eko Boys, Kings College, Others in GTBank Masters Cup Semis

By Modupe Gbadeyanka Eight teams in the male and female categories from seven different secondary schools in Lagos have made it to the semi-final stages of the 2020 GTBank Masters Cup. The teams scaled through to the next stage after a thrilling round of football in the quarter finals. For the semis, all four games will be played at the Campos Stadium, Lagos Island, on Wednesday, February 5, 2020, where the semi-finalists will compete for a coveted spot in the grand finale. Lekki-based Greensprings School has representatives in both the male and female categories in the last four stage. Last


H1 2019: University Press Widens Loss by 248%

By Adedapo Adesanya University Press Plc has again recorded another loss in the first half of this year, having suffered a similar fate in the first half of last year, indicating that things are still not in the right shape in the company. The publishing house, which released its financial statements recently, recorded a higher comprehensive loss after tax, which stood at N144.5 million as at June 30, 2019 as against a N41 million loss recorded as at June 30, 2018. This indicated that the loss was expanded by 248.2 percent year-on-year. The company’s financial statements also showed that the


African Challenges to African Development

By Ehiedu Iweriebor The parlous story of African economic and social development since independence best expressed in the failure to achieve the autonomous capacity for self-actuated development and in particular to create conditions of national and continental modern mass production and prosperity is well known and need not be repeated. It is enough to re-state that Africa’s development failure was because of the leaderships’ choice to retain, maintain and expand the inherited exocentric colonial system of development incapacitation, primary commodity export, import dependency and poverty generation. The progressive efforts of some African states and leaders to change the system and


NDLEA Confiscates N1.37bn Worth of Tramadol at Apapa Port

By Adedapo Adesanya About 2.75 million tablets of Tramadol 1,650 kilograms worth N1.375 billion have been seized by operatives of the National Drug Law Enforcement Agency (NDLEA) at the Apapa port in Lagos. In a statement on Sunday, the spokesman for the NDLEA, Mr Femi Babafemi, said the consignment, packed in 55 cartons of Tapentadol and Carisoprodol types of Tramadol, was seized during an examination of a container number SUDU 7538656 on Saturday, July 30 following credible intelligence. This comes on the heels of similar efforts by anti-narcotic officers at the Murtala Muhammed International Airport (MMIA), Ikeja that thwarted bids


Naira Gains 0.08% at Official Market, as Dogecoin Continues to Soar

By Adedapo Adesanya The Naira appreciated on the US Dollar at the Investors and Exporters (I&E) segment of the market on Tuesday, July 25, amid continued foreign exchange supply shortage in the financial system. In the spot market, the local currency gained 0.08 per cent or 62 Kobo against the greenback to settle at N791.42/$1, in contrast to the preceding day’s rate of N792.04/$1. Business Post reports that the currency market is still being plagued with the FX crisis as the value of transactions remained low, though it marginally increased by 4.2 per cent or $2.09 million during the session


FCMB Shifts AGM to Head Office

By Dipo Olowookere FCMB Group Plc has announced the change of venue of its forthcoming Annual General Meeting (AGM). The company said in a statement on Wednesday that the shareholders’ gathering, which was earlier scheduled to take place at the Shell Hall of Muson Centre in Onikan, Lagos, will now hold at its head office also located in Lagos. Explaining the rationale behind this change of venue, the management of the financial institution said it was due to the federal government’s restriction on public gatherings, especially in Lagos, Abuja and Ogun State. FCMB had earlier announced that its 7th AGM

Recent Stories

Banking, Energy Stocks Slurp N126bn from Nigerian Exchange

By Dipo Olowookere The bears tightened their grip on the Nigerian Exchange (NGX) Limited on Tuesday, chopping off 0.34 per cent from the local bourse despite assurances from Mr Yemi Cardoso he would endeavour to ensure the Central Bank of Nigeria (CBN) restores its independence. Mr Cardoso was confirmed as the new CBN Governor by the Senate yesterday and he promised to formulate evidence-based monetary policies, a departure from his predecessor, Mr Godwin Emefiele, who was accused of romancing the President and coming up with trial-and-error policies. Business Post reports that investors were more interested in trimming their exposure to


Senate Confirms Cardoso as CBN Governor, Pledges Evidence-Based Policies

By Adedapo Adesanya The new Governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso, has said he would adopt an evidence-based monetary policy as he assumed office upon confirmation by the Nigerian Senate on Tuesday. He said the new leadership of CBN would “adopt an evidence-based monetary policy and shall not be making decisions based on a whim.” The Godswill Akpabio-led Senate confirmed the nomination of Mr Cardoso’s nomination as well as that of the four Deputy Governors of CBN nominated by President Bola Tinubu. The four deputy governors whose appointments were confirmed by the Senate are Mrs


AFC Gets $300m Chinese Loan to Boost Trade Finance

By Adedapo Adesanya  Africa Finance Corporation (AFC) has secured a $300 million loan from the Export-Import Bank of China (CEXIM) to drive increased trade finance and investment across the African continent, fostering economic growth and development. The infrastructure solutions provider on the continent announced the successful signing of the landmark agreement on the sidelines of the Asian Infrastructure Investment Bank (AIIB) Annual meetings in Egypt. The 3-year credit facility is a significant development in AFC’s long-standing relationship with CEXIM. The two institutions have collaborated since 2018, with AFC receiving $400 million in bilateral loans from CEXIM to date. According to


Fluenta Installs Technology to Reduce Gas Flaring at Dangote Refinery

By Adedapo Adesanya Ultrasonic sensing technology company, Fluenta, has completed work on the Dangote Refinery in Nigeria, Africa’s biggest oil refinery, installing 18 ultrasonic flare gas meters on large pipelines around the plant. This company is using its technology to aid Nigeria’s flare gas reduction efforts and with Dangote Refinery set to begin operations soon, according to its management recently, this could be a step to fix inaccurate measurements of gas flaring. Nigeria currently imports refined petroleum products for its use, even though it is Africa’s biggest oil producer and with Dangote Refinery, the world’s largest single-train refinery capable of


Smart Recycling Hub Opens in Ibadan

By Aduragbemi Omiyale A smart recycling hub has been unveiled at the Ojoo terminal in Ibadan, the Oyo State capital, courtesy of a waste management consultant, Mottainai Recycling Limited. The facility was opened on Monday at a ceremony attended by the representatives of the state government, the consultant, and the Akinyele Local Government, among others. The Director of Environment of the local council, Mrs Ahmed B.D., said the initiative was aimed to raise awareness among traders, market women, and the general public about climate change, stressing the hazards and consequences of indiscriminate waste disposal, and other undesirable waste management practices.


Small Business Owners Fret Over Exchange Rate Instability

By Bliss Okperan The exchange rate instability in the country is already giving small business owners sleepless nights and it threatens their investments. This concern was raised recently by the National Vice Chairman of the Nigerian Association of Small-Scale Industrialists, Mr Segun Kuti-George. He emphasised that business owners would have to increase their prices because of the unavoidable consequence of the current exchange rate crisis in Nigeria. According to him, if consumers are unable to meet up with the increase in the cost of goods and services, businesses would be forced to shut down their operations, which would, in turn,


NGX RegCo’s Code of Conduct for Stockbrokers Takes Effect October 3

By Aduragbemi Omiyale A new Code of Conduct for Approved Persons of Trading License Holders, otherwise known as stockbrokers, has been introduced by the Nigerian Exchange (NGX) Regulation Limited (NGX RegCo). It was disclosed that the ethical guideline was designed to ensure professionals dealing with the trading of shares at NGX Limited follow high standards. Furthermore, it highlights the expected standards and values that Approved Persons must display at all times when conducting their businesses at all times. The idea of the code of conduct for stockbrokers, according to the regulator, is to deepen the market and foster professionalism, integrity,


Sustainable Development is a Necessity for Every Society in the World

By Professor Maurice Okoli For the majority of African leaders and delegates, it was a momentous achievement, to participate and contribute speeches with diverse themes at the podium during the 78th session of the UN General Assembly (UNGA) in New York. The UNGA traditionally meets in September, the highest global gathering to make several significant decisions on what the organization, consisting of 193 UN members, is generally expected to do. It has wrapped up its 78th annual session with another huge pack of commitments to engage in reshaping a better life for the entire population and Development paradigms in the


Equinor to Sell 20.2% Stake in Nigeria Oil Field Asset to Chappal

By Adedapo Adesanya A foreign oil company, Equinor ASA, has chosen a little-known Nigerian company, Chappal Energy, as the preferred buyer of its stake in one of the country’s largest deep-water oil fields, Agbami. According to a report by Bloomberg on Monday, the Norwegian energy giant is trying to sell its 20.2 per cent interest in the Agbami field – joining other international producers such as Shell Plc, Exxon Mobil Corporation and Eni SpA in looking to offload assets in Africa’s biggest crude producer, Nigeria. In January, Equinor launched the sale of its stake in an offshore Nigerian oilfield, joining


400-year-old British Institution Opens $150m School in Lagos

By Adedapo Adesanya A 400-year-old British educational institution, Charterhouse, has commissioned its first African school, currently in progress on a sprawling 70-hectare site located at Ogombo in Lekki, Lagos. The introduction of Charterhouse Lagos marks the convergence of British independent school heritage with cutting-edge educational practices, ushering in a new era of excellence in West African education. Charterhouse Lagos will represent a remarkable educational undertaking in the commercial capital of the country, with the planned $150 million campus expected to be fully delivered in 2028. The school’s development will unfold gradually, with the first intake of primary school students in