The U.S. oil industry is seeking to forge an alliance with the nation's corn growers and biofuel producers to lobby against the Biden administration's push for electric vehicles, but is so far meeting a cool reception, according to multiple sources familiar with the discussions.
The effort also reflects the rapidly shifting political landscape in Washington: the oil industry's once-mighty influence has waned since Biden replaced Donald Trump as president, but the farm belt remains a vital and powerful political constituency. "This whole idea was going to have to take a whole lot of time to gel, but we have made some progress," said Derrick Morgan, senior vice president at AFPM.
The National Corn Growers Association is also considering whether to send staff the February discussion, according to two sources familiar with the matter. Sources said the biofuel and corn industry is reluctant to join with the oil industry on this issue not just because of its longstanding rivalry with refiners, but also because it does not want to publicly oppose the energy policies of the new president.The refining sector enjoyed a seat at the table under former President Donald Trump, who was keen to bolster the oil and gas industry.
AFPM's Morgan said refiners are not scared of electric vehicles but dislike rigid government mandates."What we have a problem with are heavy-handed mandates that take away consumer choice, either altogether or in large part. We don't think that's the right way forward," Morgan said.
Why fight modernization? Embrace change