Banning hydraulic fracturing in the U.S. will aid foreign oil producers at the expense of the American economy, an ExxonMobil (XOM) executive said Friday.
“Any efforts to ban fracking or restrict supply will not remove demand for the resource,” ExxonMobil vice president of Investors Relations Neil Hansen said on the company’s third-quarter earnings conference call, Kallanish Energy learns.
“If anything, it will shift the economic benefit away from the U.S. to another country, and potentially impact the price of that commodity here and globally.”
He was asked how the oil supermajor is evaluating political risk ahead of the 2020 election because Sen. Elizabeth Warren has said if elected, on her first day as President, she would ban all fracking and put a moratorium on new fossil fuel leases for drilling on offshore and public lands.
Fellow Democratic Presidential candidate Sen. Bernie Sanders has said he would do the same thing.
Analysts have said banning fracking could hurt smaller companies, particular those involved in exploration and production, while driving up global oil prices, CNBC reported.
“I think any efforts obviously to ban fracking would have a negative impact on industry efforts to develop resources like the Permian. There’s no doubt in that,” Hansen said, CNBC reported.
He said the company shares concerns about climate change and emissions reductions, but believes there are more effective ways to curb emissions, such as instituting a revenue-neutral carbon tax.
“It’s uniform, it’s transparent, it will incentivize the market to find solutions,” he said, CNBC reported.
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