US Clean Energy Policy Remains Work in Progress Amid Lingering Attachments to Oil: EIC
Published: 14 December, 2023
The Energy Industries Council (EIC), leading energy trade association, has released its latest country report focusing on the United States. The 55-page report provides a deep exploration of the United States' dynamic energy sector and explores the impact of the Inflation Reduction Act.
Firdaus Azman, the author of the report, said, “While the IRA champions renewables and clean tech, it still has lingering attachments to the oil and gas sector. We should beware of mixed messages – America's energy policy is still a work in progress.”
The report, released today, examines various facets of the nation's energy landscape, shedding light on crucial aspects of oil and gas production, downstream activities, electricity generation, renewable energy trends, and the evolving scope of clean energy initiatives.
The United States, maintaining its position as the leading oil-producing country, sees 85% of production stemming from onshore activities. The report highlights notable developments in the Gulf of Mexico (GOM), with projects such as the Vito oil field and King’s Quay Floating Production System.
The report sheds light on the rising prominence of renewables, including solar and wind. Solar power, buoyed by tax credits and the Infrastructure Bill, is anticipated to contribute over 40% of U.S. electricity by 2035.
The report takes a deep dive into the burgeoning energy storage sector, with a specific focus on the Department of Energy's Energy Storage Grand Challenge, a comprehensive program to accelerate the development, commercialisation, and utilisation of next-generation energy storage technologies. Leading in hydrogen production, the U.S. is actively pursuing cost reduction through initiatives like the National Clean Hydrogen Strategy and the Hydrogen Hubs Programme, backed by the Bipartisan Infrastructure Law.
While challenges persist for solar and wind industries, including supply chain issues and policy changes, the report sheds light on their pivotal role in achieving the U.S.'s net-zero emissions target by 2050. Offshore wind projects, particularly in the Gulf of Mexico and the Northeast region, show promise.
Beyond the technicalities of the energy sector, the report provides a holistic overview of the U.S.'s social, technological, political, and economic dimensions. From demographic insights to technological advancements and political dynamics, the report presents a comprehensive understanding of the multifaceted factors shaping the energy landscape.
For international businesses seeking to navigate the U.S. market, the report offers invaluable information on the complex tax system, international business considerations, technical compliance, and business etiquette.
“The US energy market is not for the faint hearted, but for those willing to embrace the challenges and leverage the opportunities, it can be a rewarding journey,” Azman said.
To download the report, please visit the following link: https://www.the-eic.com/MediaCentre/Publications/Reports
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