How The Inflation Reduction Act Will Benefit The Oil Industry | OilPrice.com

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The Inflation Reduction Act is the largest ever piece of legislation aimed at addressing climate change, spending a total of $369 billion on energy and climate.

- Mar 08, 2023, 7:00 PM CST

For many environmentalists, the participation of the oil and gas industry in the transition is not simply impossible because of the very nature of the business but also very much unwanted. The only way oil and gas can take part in the transition, according to these activists who block traffic and vandalize works of art across Europe, is if the industry ceases to exist. Apparently, the Biden administration's opinion differs.

Exxon's Darren Woods echoed the sentiment last month. Speaking to investors, the chief executive of Exxon said,"There's a lot of activity in this space [carbon capture], a lot of interest, particularly with the IRA. I think we're very well positioned there," he said. This is why the IRA subsidy stipulations include carbon capture—because it appears to be critical for the transition. Yet opposition against it remains loud. More than a hundred groups earlier this month urged Congress to drop plans to provide further, targeted support to carbon utilization projects in the form of tax credits.

 

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And theres the source of inflation, proping up unprofitable companies

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