As newly elected Republican members of the House of Representatives prepare to head to Washington, energy companies anticipate a friendly relationship.
- A Republican majority in the House likely means that oil and gas companies will have a friendlier reception in Washington over the next term.
- Clean-energy initiatives and clean-energy companies are expecting some headwinds as the Biden administration’s agenda will likely be scrutinized.
- A complete overhaul of existing energy practices is unlikely, though, as the Democrats still have control of the U.S. Senate and the White House and the Republican majority in the House is very thin.
Why it’s news
With a Republican majority set to take office in the House, oil and gas companies are expecting Washington, D.C., to be more friendly to their agendas. Conversely, the clean-energy sector is expecting slower movement compared to the last two years.
In order to increase national security surrounding fuel supply, Republicans are expected to support measures that would increase domestic production of oil and gas. War in Russia and Ukraine has led to shortages of fuel around the world. A domestic supply could alleviate some of those concerns.
Massive changes to the status quo are unlikely as Democrats have maintained Senate control, but the split Congress could lead to slower movement of President Joe Biden’s clean-energy initiatives.
Additionally, high energy prices could lead to Democrats being more supportive than usual of oil and gas companies. A complete transition to green energy is still a long way off and energy concerns are cutting across party lines.
Even so, Democrat Climate Crisis Committee chair Representative Kathy Castor has said that the party will continue focusing on a shift to clean-energy and lowering overall emissions.
It is unlikely that many Republicans will look to challenge some of the Biden administration’s more recent initiatives that offer tax cuts. Some Republican majority states will likely move forward with ongoing wind energy programs that bring jobs and other benefits to the state.