Largest U.S. oil and gas trade group backs carbon price

Over 100 oil and gas companies went bankrupt in 2020- Energy News Beat
Photo: Elizabeth Conley, Houston Chronicle / Staff Photographer An oil pumpjack works in the field in Penwell, Texas. Forty-six exploration and production companies and 61 oil-field service companies filed for Chapter 11 bankruptcy last year, according to Haynes and Boone, a Dallas law firm tracking bankruptcies. The 107 oil and gas bankruptcies in 2020 were the most since 142 bankruptcies were filed during the last oil bust in 2016.

The industry group representing oil and gas companies including Exxon Mobil Corp and Chevron Corp said on Thursday it supports a carbon price as one measure to mitigate climate change risk.

finviz dynamic chart for  XOM

Oil and gas trade group the American Petroleum Institute (API) said in a call with reporters that it endorsed a carbon-price policy to drive economy-wide solutions.

“We are not advocating a specific price,” API President Mike Sommers said on the call announcing the group’s new plan to address the risks of climate change. “What we are saying is this is a framework through which API will advocate for specific principals.”

The API plans to advocate for sensible legislation that prices carbon across all economic sectors while avoiding regulatory duplication, Sommers said.

API has started to shift some of its rhetoric on climate and carbon issue as the climate-focused Biden administration came to power.

Still, Sommers did not commit to the industry reaching net-zero oil emissions in the next 15 years.

“There is no way that it is feasible without technologies that are not in the marketplace today,” he said.

President Joe Biden’s administration is due to unveil a new economy-wide emissions reduction target for 2030 to comply with the Paris climate agreement by April 22, when Biden convenes world leaders on climate change.

Some Republicans spoke out against the API’s inclusion of a carbon price.

“We need serious American solutions that are based on American innovation, resources and ingenuity that reduce costs and create jobs, not a cop-out approach to appease the radical left,” said U.S. Representative Garret Graves of Louisiana, the senior Republican on the House Select Climate Committee. A carbon tax would increase the cost of goods from food to fuel for all Americans, Graves said.

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Stuart Turley is President and CEO of Sandstone Group, a top energy data, and finance consultancy working with companies all throughout the energy value chain. Sandstone helps both small and large-cap energy companies to develop customized applications and manage data workflows/integration throughout the entire business. With experience implementing enterprise networks, supercomputers, and cellular tower solutions, Sandstone has become a trusted source and advisor.   He is also the Executive Publisher of www.energynewsbeat.com, the best source for 24/7 energy news coverage, and is the Co-Host of the energy news video and Podcast Energy News Beat. Energy should be used to elevate humanity out of poverty. Let's use all forms of energy with the least impact on the environment while being sustainable without printing money. Stu is also a co-host on the 3 Podcasters Walk into A Bar podcast with David Blackmon, and Rey Trevino. Stuart is guided by over 30 years of business management experience, having successfully built and help sell multiple small and medium businesses while consulting for numerous Fortune 500 companies. He holds a B.A in Business Administration from Oklahoma State and an MBA from Oklahoma City University.