Industry insider and Oil & Gas Global Network’s Editor-in-Chief Mark LaCour on President Biden’s spending proposal:
My top of mind on Biden’s Infrastructure Proposal may not be what people expect. Secretary of Energy Jennifer Granholm said that the oil and gas industry must “adapt or die.” But the fact remains: The industry’s central product, the hydrocarbon molecule, is one of the most valuable tools to mankind, and modern life is impossible without it. Rhetoric aside, our reliance on this molecule, directly and indirectly, will not change anytime soon.
Case in point: A part of the Biden plan includes $115 billion allocated to roads and bridges. That construction is going to need a few billion tons of asphalt. And a primary ingredient in asphalt happens to be crude oil.
At maximum production, the US can only produce 350 million tons of asphalt a year, which means that the US asphalt business will skyrocket under Biden’s infrastructure proposal. That in turn will require an enormous amount of crude, and ultimately be a boon to the larger oil and gas industry.
All of that said, the Biden plan will force the US oil and gas industry to do things more efficiently and start to curb emissions over the long term. There is zero doubt that that will require new technology, new processes, and new ways of thinking… all of which, I think we can all agree, will be good for American industry to take the lead on.