The US administration of President Donald Trump is leaning in to its fossil fuel-focused "American Energy dominance" agenda with less than a month to the November general election and despite an increasing number of outlooks that show oil demand declining over the coming years.

In a report released on 5 October, the US Department of Energy (DoE) said continued oil and natural gas production would remain "an integral element" of the transition to a low-carbon energy future.

"A seamless transition to a lower-carbon future will depend on a steady supply of hydrocarbons to minimise economic disruption," according to the DoE.

The department's own projections for supply and demand in light of the Covid-19 pandemic are, however, murky.

Assistant Secretary for Fossil Energy Steve Winberg said the work on the report started before the pandemic began and so it does not directly address its impact on oil and gas demand.

"While we can’t know with great clarity what the future will bring post-Covid, what we do know is the technologies that we’re working on will be applicable and the products that are made by oil and natural gas will be used not only by Americans but by people around the world," Winberg told reporters.

The report's release followed statements by European supermajors Total and BP suggesting oil demand may not recover to pre-Covid-19 levels. However, both companies and many other peers see a brighter future for natural gas in the energy transition.

Key technologies

The DoE report touted several technologies the agency believes will help oil and gas companies succeed in the energy transition.

Those technologies include include unconventional resource development, enhanced oil recovery (EOR), deep-water floating platforms and subsea completions, and carbon capture, utilisation and storage.

The DoE also singled out artificial intelligence and machine learning to enable more effective extraction and transportation of hydrocarbons, as well as the development of new technologies to mitigate the environmental impacts and improve safety of oil and natural gas production.

Winberg described EOR as a "low-hanging fruit" for research since there is already an economic impact associated with production, but he added that the DoE was also focused on carbon storage in deep saline formations as well as finding ways to convert carbon dioxide into a raw material for manufacturing.

"The fact is, it’s going to take all three," he said.

"It's going to take enhanced oil recovery, it’s going to take deep saline sequestration, and it is going to take technology to develop using this CO₂, to... convert it into a useful raw material or a commodity for manufacturing."

Rosy picture

The report paints a rosy picture of the oil and gas sector, highlighting the many uses of petroleum products, including its use in consumer products and automobiles, as well as its role in national and energy security.

However, it skims over hot-button topics such as the industry's impact on greenhouse gas emissions and climate change.

In one instance, the report notes: "It’s difficult to imagine what life would be like without the hundreds of items we rely on every day for safety, durability, comfort, and convenience that come from oil and natural gas."

When asked why the report focused only on benefits, Winberg said it addresses natural gas's role in reducing global CO₂ emissions.

"This report does talk about the benefits of oil and natural gas because it is undeniable that there are a lot of benefits," he said.

"I think that the report does touch on some of the very real issues that the world is addressing like addressing CO₂ emissions, and that is certainly something that natural gas and US natural gas in particular has brought to the world."

The report's release came one month before the November presidential election, in which the debate over climate change and energy is playing a key role.

On 6 October, Democratic candidate Joe Biden, who is running against incumbent Trump, released an ad campaign focused on climate change.

Politics

US Energy Department: Oil and gas production 'an integral element' of energy transition