KEY POINTS
- Fossil fuels have traditionally been the main sources of energy produced worldwide.
- U.S. oil production hit record highs under Biden, driven by global demand and geopolitical events.
- Despite a push for renewables, the fossil fuel industry has experienced significant growth.
Fossil fuels, primarily coal, oil, and natural gas, have long been the backbone of global energy production, providing the power necessary for industries, homes, and transportation. Their role in driving economic growth, especially since the Industrial Revolution, is undeniable.
However, burning fossil fuels is also the leading cause of greenhouse gas emissions, which contribute significantly to climate change. Scientists have long warned that if global warming is to be limited to manageable levels, a drastic reduction in fossil fuel consumption is needed to mitigate the negative environmental impact, which includes rising temperatures, melting ice caps, and more frequent extreme weather eventsÂ
Despite these dire warnings, reducing dependence on fossil fuels has been an uphill struggle for many nations, particularly because of the economic reliance on these energy sources. Transitioning to renewable energy such as solar, wind, and hydro requires massive investment, technological innovation, and restructuring of energy infrastructure.
Fossil fuels still account for around 80% of the world’s energy consumption, creating a significant challenge for governments aiming to shift toward cleaner energy while maintaining energy security and economic stability
Biden’s climate ambitions and the fossil fuel conundrum
When President Joe Biden took office in 2021, he made ambitious promises to combat climate change and reduce reliance on fossil fuels. His administration has promoted policies to foster renewable energy projects, including substantial investments through the Inflation Reduction Act, which allocates billions in subsidies for clean energy production.
Despite President Joe Biden’s commitment to reducing the reliance on fossil fuels and shifting the U.S. economy towards renewable energy, the fossil fuel industry has experienced surprising growth under his administration.
In 2024, U.S. oil production have reached record levels, surpassing major producers like Saudi Arabia and Russia. This growth has been driven largely by global events, such as Russia’s invasion of Ukraine, which significantly pushed up oil and gas prices and increased demand for U.S. fossil fuel exports.
The economic recovery following the COVID-19 pandemic also fueled demand for oil and gas, resulting in a boom for fossil fuel producers. In the first three years of Biden’s presidency, profits for major oil companies, including ExxonMobil, Chevron, BP, Shell, and TotalEnergies, reached $410 billion, a 100% increase compared to the same period under former President Donald Trump.
Additionally, the fossil fuel sector has expanded its workforce faster than the renewable energy sector, adding nearly 80,000 jobs during Biden’s tenure, compared to 38,000 jobs created in solar and wind energy combined .
Environmental policies and energy contradictions
While Biden has made substantial investments into renewable energy, through initiatives like the Inflation Reduction Act, which allocates billions in tax credits to support clean energy projects, fossil fuel production has simultaneously thrived.
The White House argues that this increased production helps maintain energy stability during the transition to cleaner sources. Biden’s climate agenda includes measures such as canceling the Keystone XL Pipeline and pausing new LNG export permits, yet these actions have had limited impact on curbing oil and gas output in the short termÂ
The future of fossil fuels in the U.S.
In response to geopolitical instability and energy demands, U.S. ports have shipped record amounts of oil abroad, including to Europe, which seeks to reduce its dependence on Russian energy supplies. This trend has fueled continued profitability for U.S. fossil fuel companies, who have also increased shareholder dividends by 57 percent compared to the first three years of the Trump administration.
Despite Biden’s actions aimed at fostering renewable energy, the fossil fuel boom under his administration highlights the complexities of managing energy policy amid global market pressures .
As Biden continues to push for an energy transition, the longevity of the current fossil fuel boom is uncertain. Key actions, such as reducing federal oil leasing and tightening regulations for natural gas and oil infrastructure, could limit the industry’s growth in the coming years.
While fossil fuel companies continue to benefit from high prices and global demand, experts warn that future policies may hinder long-term expansion, particularly if environmental regulations and incentives for renewables are allowed to take full effect .
