Should the U.S. go so far as to stop selling fossil fuels on the global market just as it nears toppling Saudi Arabia as the world’s leading oil exporter? A handful of 2020 Democratic presidential hopefuls say yes.
The roughly 20-strong field looking to beat President Donald Trump next year aligns in its plans to rejoin a Paris Climate Agreement that includes leading U.S. allies, and most candidates want to end new fossil-fuel leasing on public lands. Widening the lens, however, their environmental proposals reveal key differences, and not just when it comes to U.S. oil, where to find it and how to sell it.
“One area where candidates overwhelmingly agree (15 candidates) is ending new leases for fossil-fuel development on federal lands. Investors should take note because this is something that a president can do unilaterally, without congressional approval,” says James Lucier, who leads the energy, environmental and tax practices at Capital Alpha.
Federal lands offshore and onshore currently produce 13% of U.S. natural gas and 24% of U.S. oil CL.1, -0.70% . U.S. crude oil exports will nearly double to 9 million barrels a day by 2024, the International Energy Agency forecasts. That’s enough to surpass Russian shipments and threatens to overtake Saudi exports. But the U.S. should be investing in alternative energy sources, not pouring oil onto the global market, say early poll leaders Sen. Bernie Sanders and Sen. Elizabeth Warren, along with Sen. Cory Booker and select others. […]