Much was made about the impact of Biden's infrastructure bill on the U.S. oil and gas industry, but details suggest there is nothing to worry about.
The long-awaited bipartisan infrastructure bill worth more than $1 trillion was opened for debate on the Senate floor yesterday.
- Unless the bill’s provisions get tightened, the scope of potential demand destruction for the oil industry remains narrow – the $10 billion allotted for electric vehicle infrastructure might be perceived as eschewing broad-scale ambition.
- In fact, oil refiners might benefit from the record investment pouring into rebuilding the US’ highways and transportation infrastructure, which should increase residue demand in the mid-term.
- Natural gas producers might be tempted to cash in on the bill’s natural gas fueling infrastructure and plentiful hydrogen-related dimensions.
- In addition, the bill calls for $12.5 billion in funding for carbon capture programs, including some $2 billion for carbon dioxide pipelines across the country.
Oilprice