Biden Is Blamed for Downturn in New Oil Drilling, but Fossil Fuel Companies Are the Ones Hitting Pause

Fossil fuel companies and markets are still reeling from the economic downturn during the pandemic and the associated oil price crash, according to Rachel Ziemba, an energy expert and adjunct senior fellow at the Center for a New American Security.

Now they are trying to limit their risk by sticking to projects that are assured to generate oil. Investors are still “somewhat wary of green lighting new projects,” Ziemba said. “People are mostly doing the most solid projects.”

Ziemba pointed out that even this year, with countries scrambling to lock up energy supplies after Russia’s invasion of Ukraine, there hasn’t been a wave of new leasing activity. “Overall, I think there has been a structural shift over five and six years,” Ziemba said. “There’s been a shift with financial backers, increasing concerns not only about geopolitical risk, but also pressure about financing new fossil fuel projects.”

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