American Oil and Gas Reporter - October 2020 - 61

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Election2020: Industry Analysis
Apart from their uses in transportation, heating and power generation,
hydrocarbons are feedstock or a necessary aspect of many fertilizers and
plastics. And an abundant U.S. supply of affordable natural gas and
natural gas liquids has prompted companies to invest billions in
petrochemical facilities, which create the building blocks used in mobile
phones, toys, food containers, plastic gloves and much more. Nevertheless,
some activists insist the right thing to do with petroleum is to "keep it in
the ground." Do you think (Biden/Trump) accepts that premise? What
policies do you think his administration might adopt regarding America's
petrochemical and manufacturing industries?
We distinguish between campaigning and governing when we talk with clients. For Biden to
win, he must energize the progressive Democrats
who support keep-it-in-the-ground policies. If he wins,
however, he will be trying to revive a COVID-crushed
U.S. economy-all sectors of the economy.
The Obama administration saw energy production
as a means of fueling a manufacturing renaissance.
As the former six-term senator from the headquarters
state of a major chemical company, Biden appears to
think about oil and gas-and the petrochemical feedstocks the sector produces-the same way.
To that end, Biden's economic proposals include
tax credits for industries that "reshore" back to
America, although doing so will require congressional
support. The "advanced" manufacturing he would
hope to stimulate by doing so will need NGLs, too,
as will upsizing the national strategic stockpile.

It surprises many people to learn that oil and
natural gas are key ingredients in so many of
the everyday items in their lives, from smartphones to personal protective equipment to plastics
and the fertilizers that help our food grow. More than
80% of the products we use are made from fossil
fuels, and the rest are manufactured and shipped using
fossil energy; no one eats, wears or uses anything that
was not made possible by oil or natural gas.
We have yet to find substitutes for the vast
majority of these products that are as affordable
and reliable in the long term. Because of this, we
cannot allow the anti-American "keep it in the
ground" contingency to thwart efforts to explore
and produce critical reserves.
The most effective weapon these organizations
have found to use against this industry is the apocalyptic
climate change narrative-a propaganda campaign
that predicts without evidence a global catastrophe
unless we eliminate all greenhouse emissions, and
justifies any means of doing so, regardless of the
cost. We cannot allow this pro-China, anti-American
mindset to prevail, or we will sabotage ourselves and
our environment.
President Trump will continue rolling back and
fighting new regulations to allow the petrochemical
and manufacturing industries to thrive, keeping product
prices low and the American economy thriving.

OCTOBER 2020 61

American Oil and Gas Reporter - October 2020

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