Assessment of the impact of US Energy Policy on world oil prices


Affiliations

  • Financial University under the Government of the Russian Federation, PhD in Economics, Associate Professor, Department of World Economy, and International Business, Moscow, 125993, Russian Federation
  • Financial University under the Government of the Russian Federation, Postgraduate student, Department of World Economy & International Business, Faculty of International Economic Relations, Moscow, 125993, Russian Federation

Abstract

The development of the energy sector in the United States of America (USA) represents a rivalry between two different approaches, which has intensified under the last three American administrations. The competition of approaches is expressed in the confrontation between supporters of energy based on renewable sources and supporters of traditional energy resources. A comparative analysis of changes in the energy sector, depending on the prevalence of a particular approach to energy development, shows that external conditions play a key role in promoting the energy strategy. The strategy of priority development of “green†energy carried out under Barack Obama could not be realized because of the shale boom. As a result, many companies working with renewable energy sources did not stand up to the competition. The opposite approach of Donald Trump’s focus on developing traditional energy resources to ensure US energy security and to increase jobs has been hit by the COVID-19 pandemic, which has virtually nullified the US administration’s efforts under this approach. The current concept of President J. Biden is aimed at continuing the strategy of Barack Obama for the development of “green†energy in the United States. Proponents of this concept hope for the possibility of its at least partial implementation in the absence of a shale boom. The lifting of the embargo on the export of American oil has led to an increase in oil supplies abroad. As of 2018, the United States has overtaken Saudi Arabia in terms of oil and gas exports, taking a leading position in the global oil market. In 2019-2020, the United States retained the first place in the world in oil production. This article examines the conceptual approaches of American administrations to the issue of energy policy and analyzes the statistical data that characterize the traditional and “clean energy†industries. An important factor is the degree of influence of the US energy policy on global oil prices. To analyze this issue, this research uses curved regression equations to assess the impact of US energy policy on world oil prices under the administrations of Barack Obama and Donald Trump. The results of the correlation show that a more effective interaction between the variables was carried out during the presidency of Barack Obama, when Exports of Crude Oil influenced the price dynamics of oil quotes with an inverse relationship. With the arrival of the Biden administration, the strategy started under Obama in favor of developing clean energy was continued. In the context of the spread of covid-19, the growth of crisis phenomena in the national economy, the growth of production costs in the oil and gas industry, and the fall in the world energy prices, the development of green energy can have a certain effect, given the Biden administration’s approach to energy development. The subsequent actions of the Biden administration may offset Trump’s efforts to develop traditional energy to strengthen the economic potential of the United States and strengthen the position of American companies in the global oil market.

Keywords

Renewable energy sources, traditional energy, oil and gas industry, CO2 emissions, export/import of energy resources, US Energy Policy

Full Text:

References

Ackerman, S. (2008): The Obama Doctrine. The American Prospect. Retrieved from https:// prospect.org/features/obama-doctrine/

Alifirova, E. (2021): Neftegaz.ru. Retrieved from https://neftegaz.ru/news/ politics/660222-d-bayden-vstupil-v-dolzhnostprezidenta- ssha-zhdem-revolyutsiyu-chistoy-energii/

ARPA-E. (2014): ARPA-E’s FY15 budget request. Retrieved from https://www.arpa-e.energy.gov/pdfs/ fiscal-year-2015-budget-request

BLS, U. B. (2021): Employment in energy sector . Retrieved from https://data.bls.gov/cgi-bin/dsrv?ce

Clayton, B. (2013): The Case for Allowing U.S. Crude Oil Exports. Retrieved from https://www.cfr.org/report/ case-allowing-us-crude-oil-exports

Collins, M. (2016): How to Create Manufacturing Jobs. IndustryWeek. Retrieved from https:// www. i n d u s t r y w e e k . c o m / t h e - e c o n o m y / competitiveness/article/22007282/how-to-createmanufacturing- jobs

EIA, U. E. (2013): Annual Energy Outlook 2013. Retrieved from https://www.eia.gov/todayinenergy/ detail.php?id=10831

EIA, U. E. (2015): Effects of removing restrictions on U.S. crude oil exports . Retrieved from https:// www.eia.gov/analysis/requests/crude-exports/

EIA, U. E. (2021): Carbon dioxide emissions from energy consumption. Retrieved from https:// www.eia.gov/ totalenergy/data/browser/ xls.php?tbl= T11.01&freq=m

EIA, U. E. (2021): Crude oil including lease condensate production. Retrieved from https: //www.eia.gov/ international/data/world/ petroleum-and-other-liquids/ annual-petroleum-and-other-liquids-production? pd=5&p= 00000000000000000000000000000000002 &u = 0&f = A&v = mapbubble&a = -&i = none&vo = value&t = C&g = 000000000000000000000000 00000000000000000000000

EIA, U. E. (2021): Total Crude Oil and Products Exports by Destination . Retrieved from https://www.eia.gov/ dnav/pet/pet_move_expc_a_ep00_eex_mbbl_a.htm

EIA, U. E. (2021): U.S. Crude Oil Imports. Retrieved from https://www.eia.gov/dnav/pet/pet_move_impcus _a2_nus_epc0_im0_mbbl_m.htm

EIA, U. E. (2021): U.S. Field Production of Crude Oil (Thousand Barrels). Retrieved from https: // www.eia.gov/dnav/ pet/hist/LeafHandler.ashx?n = PET&s = MCRFPUS1&f = A

EIA, U. E. (2021): U.S. Natural Gas Exports (MMcf). Retrieved from https://www.eia.gov/dnav/ng/hist/ n9130us2a.htm

EIA, U. E. (2021): US coal data in short tonnes. Retrieved from https: //www.eia.gov/coal/ data/ browser/ #/topic/41?agg = 2,1,0&rank = ok&linechart = COAL. EXPORT_QTY.TOT-TOT-TOT.A & columnchart = COAL.EXPORT_ QTY.TOT-TOTTABLETOT.A&map = COAL.EXPORT_QTY.TOT-TOTTOT. A&freq = A&start = 2000&end = 2019&ctype = map&ltype = pin&rtype = s&maptype = 0&rse = 0&p

Finanz.ru. (2018): Finanz.ru. Retrieved from https: //www.finanz.ru/novosti/ birzhevyye-tovary/ ssha-obyavili-rekordnuyu -vistorii- rasprodazhu-neftegazovogo- shelfa- 1017281009

Koranyi., D. (2016): A US Strategy for Sustainable Energy Security. The Atlantic Council of the United States. Retrieved from https: //espas.secure.europarl. europa.eu/orbis/ sites/default/files/ generated/ document/ en/AC_SP_ Energy.pdf

Larsen, J., Mohan, S., Marsters, P., and Herndon., W. (2018): Energy and environmental implications of a carbon tax in the United States. Columbia Sipa Center On Global Energy Policy. Retrieved from https: // energypolicy.columbia.edu/ sites/default/ files/ pictures/CGEP_ Energy_Environmental_ Impacts CarbonTax_ FINAL.pdf

Letter, A. O. (2008): Securing America’s Energy Future: An open letter to the 44th President of the United States and the 111th U.S. Congress. Retrieved from https: //www.globalenergyinstitute.org/ securingamericas- energy- future-open-letter-44th -presidentunited- states-and- 111th-congress

Lu, Y., Khan, Z., Alvarez-Alvarado, M., Zhang, Y., Huang, Z., and Imran, M. (2020): A Critical Review of Sustainable Energy Policies for the Promotion of Renewable Energy Sources. Sustainability (12, No.12: 5078). doi:https: //doi.org/10.3390/su12125078

Poneman, D. (2017): American Energy Policy. Harvard Kennedy School. Retrieved from https: // www.belfercenter.org/ sites/default/files/ files/ publication/ Poneman %20American %20Energy %20Policy_0.pdf

Schacht, W. H. (2009): Technology Transfer: Use of Federally Funded Research and Development. Congressional Research Service. Retrieved from https: //www.everycrsreport.com/ files/20091105_ RL33527_ ff620510d24019efb0c905b1e29365aa04baaec9.pdf


Refbacks

  • There are currently no refbacks.