The administration also significantly increased the tax on oil and gas income from leased lands, an unprecedented increase from approximately 12.5% to 18.75%. No president in 100 years has undertaken such an increase.
But climate change activists howled in anger.
Several Biden candidates have expressed hostility to the fossil fuel industry, discouraging investment in the industry and clarifying what the Democratic Party thinks about it. Last year, Biden appointed former Fed official Sarah Bloom Raskin as the Federal Reserve’s top banking supervisor, who advocates using rules to discourage banks from investing in fossil fuels. He also appointed Saule Omarova, a radical left-wing academic who called for banking regulations to stop investing in fossil fuels, to the Office of the Currency Supervisor. Both candidates were defeated when the moderate Democrats in the Senate retreated.
Perhaps most importantly, large institutions have invested in so-called sustainable funds that take environmental, social and governance factors into account when making investment decisions. These funds avoid investing in fossil fuels. According to the Deliote Financial Services Center, professionally managed assets with ESG entitlements worldwide will grow to $46 trillion by 2021, which will be worth about 40 percent of all assets managed. As a result, it has become very difficult to raise funds to expand fossil fuel production. Therefore, even oil prices over $100 per barrel do not attract capital to this sector.
In a recent episode of Bloomberg’s Odd Lots podcast, Goldman Sachs’ lead commodity strategist described investing in ESG as “a tedious tool that reduces capital flow in a crucial industry.”
Source: Breitbart
