Biden's final policy moves

By Liz Hampton, U.S. Energy Editor 

Hello Power Up readers! Oil prices were holding at their highest levels since mid-October on Monday, buoyed by rising demand amid colder weather in the United States and more fiscal stimulus to revitalize China's economy. The expectation of tighter sanctions on Russian oil exports also supported prices.

Global Brent futures were trading at $77 a barrel, up 49 cents. U.S West Texas Intermediate (WTI) futures were trading around $74.45 a barrel, also up 49 cents. U.S. Henry Hub natural gas futures were up about 9.5% to $3.672 as frigid weather and winter storms swept through the United States. 

U.S. oil production hit record levels during President Joe Biden's time in office, but consumers also faced soaring prices at the pump. He's advocated heavily for cleaner energy and taken policy steps to reduce greenhouse gas emissions. REUTERS/Kevin Lamarque

With just two weeks left in office, the Biden administration is rolling out its final policy announcements before President-elect Donald Trump steps in on Jan. 20. Trump has vowed to boost domestic energy production, while Biden has been a champion of cleaner energy initiatives. 

Biden will announce a ban on offshore oil and gas development on Monday across 625 million acres (250 million hectares) of U.S. Coastal territory. The ban will include the sale of drilling rights in stretches of the Atlantic and Pacific oceans and eastern Gulf of Mexico. 

This move is seen largely as symbolic because it will not affect areas where oil and gas development is currently underway, or any zones that have important development prospects. 

About 15% of U.S. oil production comes from federal offshore acreage, primarily in the U.S. Gulf of Mexico. 

U.S. oil production still hit record levels during Biden's tenure. The latest figures from the U.S. Energy Information Administration (EIA) had oil production at a record 13.46 million barrels per day in October, a 2.3% increase from the year prior. 

Biden is also set to impose additional sanctions on Russia over its war on Ukraine, taking aim at oil revenues by targeting tankers carrying Russian crude, Timothy Gardner and Nidhi Verma report. 

The sanctions will hit tankers carrying Russian oil sold above the West's $60-per-barrel price cap. The Biden administration has informed India's foreign ministry about the upcoming sanctions. 

Finally on Friday, the Biden administration said portions of nuclear power plants could secure tax credits to produce clean hydrogen if it would help keep those reactors from retiring. Nuclear energy, which is generally viewed as cleaner and reliable, has been experiencing a revival in the U.S., in part because it offers a solution to surging power demand from a boom in artificial intelligence. 

The rule announced last week addresses an issue related to the 2022 Inflation Reduction Act. Environmental groups had argued that nuclear should not qualify for the IRA's clean hydrogen program. 

Portuguese oil company Galp Energia said this weekend it was investigating an anonymous complaint about an alleged personal relationship between its CEO Filipe Silva and a female company manager. Galp is among the companies developing the massive Mopane field in Namibia. 

U.S. President-elect Donald Trump on Friday demanded an end to North Sea "windmills" and said Britain should "open up" the aging North Sea oil and gas basin. He linked his post to a report about U.S. oil and gas producer APA Corp's plans to exit the North Sea by 2029. 

Venezuela's 2024 oil exports rose by 10.5% despite political instability and changes in the U.S. sanctions regime, Marianna Parraga reported on Friday. This comes as partners of the state oil company PDVSA took more cargoes under licenses granted by Washington.

Leading oil exporter Saudi Aramco on Monday raised crude prices for Asian buyers for February, the first increase in three months. This comes after OPEC+ extended production cuts for another three months. 

U.S. biodiesel and renewable diesel production ramped up in October to multi-month highs, as margins improved, Shariq Khan reported on Friday, citing data from advisory group AEGIS Hedging. Renewable diesel producers utilized 77% of their total operable capacity, while biodiesel plant utilization rose to 89%, its highest since June 2023. 

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