The oil giants are poised to take advantage of a new US law that provides subsidies for green investments, demanding billions of dollars in bailouts despite their opposition when it was passed. This is the irony of fate. In particular, the Inflation Reduction Act, as it is called, aims to minimize greenhouse gas emissions through the development of clean energy industries and an overall transition to a green economy. It is worth noting that the $369 billion economic support to be provided has spurred new investment in renewable electricity generation and a range of products from electric vehicle batteries to solar panels. the corresponding article in the Financial Times referring to moneyreview.gr. At the same time, the law provides generous incentives for a number of low-carbon technologies and fuels, in which oil and gas executives claim they have a big advantage. Meanwhile, the new legislation, which is described as simple and easy to implement, contrasts with the European Union’s approach, which operates within a bureaucratic framework, undermining the competition of local groups. And American motives for green transition are such that many European companies are considering moving to the US, at the same time, sharp confrontations are being created on both sides of the Atlantic over protectionist policies.

US oil companies are now starting to invest in projects to capture and store carbon dioxide, upgrade refineries to produce biofuels, and produce low-emission hydrogen, all supported by subsidies from the law.

Analysts expect corporate activity to pick up as management sees both an opportunity for growth and a way to assuage investor concerns about the future of the industry amid the drive to cut carbon emissions.

It should be noted that energy group industry associations opposed the law even before it was passed in August, describing the new government spending as “the wrong policy at the wrong time,” according to the Financial Times and moneyreview.gr. Climate activists who have criticized the administration of US President Joe Biden for subsidizing technologies such as carbon capture seem to share the same view. According to activists and environmental groups, technologies aimed at sequestering carbon dioxide are considered expensive and their effectiveness is still unproven, while, among other things, they are being promoted by oil giants as a tool to continue exploiting minerals, fuels.

It should be noted that this approach of oil companies became especially noticeable after the announcement of a package of profits that they received in total during 2022 thanks to high commodity prices, and this event forced them to abandon their commitment to strengthen green energy and abandon oil and gas projects.