(Oil Price) – If Big Oil was starting to feel good about its government-sponsored climate-era glow-up, they may be in for a rude awakening, with the U.S. Energy Department reportedly preparing to pull the plug on nearly $10 billion in clean-energy funding, according to new memos seen by the Wall Street Journal.
The DOE’s move could put everything from hydrogen hubs to carbon capture collaborations in the crosshairs—yes, even those buzzy projects with ExxonMobil and Occidental.
According to internal memos making the rounds, the cuts could gut two key DOE offices tasked with steering the country’s most ambitious decarbonization efforts. That includes government contracts already inked or in the pipeline, which means a whole lot of projects might suddenly find themselves without a dance partner—or a checkbook.
The irony is rich. For over a year, energy giants like Exxon, Chevron, and Occidental have begged Washington for clarity and consistency in clean energy policy. “Just give us the rules and we’ll play,” they said. So D.C. gave them money instead. Now? Cue the nervous glances as the rules—and the funding—start evaporating.
It’s not just the oil titans who could take a hit. Solar players like First Solar, SunPower, and Shoals Technologies are all on the list of possible collateral damage. So are energy storage hopefuls, hydrogen dreamers, and the handful of carbon-capture firms still convincing investors that this time it’s for real.
If finalized, the cuts would signal a sharp pivot in how the federal government views its role in energy innovation. The gaping divide between the two political parties in the United States is set to dish out a dose of whiplash. One minute, the government is dishing out IRA billions, and the next minute, a new administration is ghosting clean-tech suitors mid-date.
For companies banking on Uncle Sam’s backing to meet emissions targets—or just stay afloat—this is a sudden reality check.
For those who feel like the green gold rush is still on in the United States, it may be wise for companies to at least bring their own wallet.
By Julianne Geiger for Oilprice.com
