Biden and Ukraine: from climate champion to oil price panic

Biden and Ukraine: from climate champion to oil price panic

As American fossil fuel companies were trying to recover in late 2020 from the pandemic-induced oil crash, two fresh blows landed on a battered sector.

First came news from Europe, where utility group Engie, under pressure from the French government, scrapped a deal to import American liquefied natural gas. The authorities deemed it too dirty because of the greenhouse gas emissions associated with shale oil and gas production. A crucial export market for US fossil fuels was closing.

Then, in November, came the election of Joe Biden, a man who pledged as a presidential candidate to “transition from oil”, curb shale drilling, enact sweeping new climate legislation and break America’s dependence on fossil fuels. History was about to leave US oil and gas behind.

But that has all changed. Just over a year into Biden’s presidency, as Russia’s invasion of Ukraine deepens fears of global oil and gas shortages and western governments scramble for new supplies, the outlook for American fossil fuels and how the White House views them are undergoing their own transition.

Desperate to wean itself from Russian oil and gas and wilting under soaring energy prices, Europe has rediscovered its thirst for American LNG. Engie has already signed up for more