While a clean energy mantra might seem to spell doom and gloom for the oil industry, certain oil sectors have been thriving to start 2021.
One Invesco ETF has been particularly hot. The Invesco Dynamic Energy Exploration & Production ETF (PXE) seeks to track the investment results of the Dynamic Energy Exploration & Production IntellidexSM Index. The fund invests at least 90% of its total assets in the securities that comprise the underlying intellidex.
The intellidex is composed of common stocks of U.S. companies involved in the exploration and production of natural resources used to produce energy. These companies are engaged principally in exploration, extraction, and production of crude oil and natural gas from land-based or offshore wells.
Despite the clean energy rhetoric, it seems that the Biden administration is now throwing the oil industry a bone. The president’s much-touted infrastructure initiative is going to call for asphalt – lots and lots of asphalt – in an unexpected boon for the domestic oil sector. Last week Biden presented his $2.25 trillion infrastructure proposal that will provide a number of economic opportunities for oil, including $115 billion allocated to roads and bridges, and an additional $16 billion to unemployed oilfield laborers back into paid positions plugging abandoned wells across the United States.
Oilfield Workers Not Left Behind
In fact, while the Biden administration is charging full steam ahead on the clean energy transition with massive investments into electric vehicles and renewables, it’s clear that they have been listening to the oil sector and making a concerted effort not to leave oilfield workers behind. “Since taking office two months ago, Biden’s been more boon than bane for a fossil-fuel industry that was wary of the ascendance of a politician bent on accelerating the energy transition,” Bloomberg reports, citing the Goldman Sachs assertion that Biden has been bullish for oil overall.
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