Fossil Fuels Climate Advocacy Update - March 2024

April 2024

This briefing contains an overview of the corporate lobbying detected by InfluenceMap related to fossil fuels in March 2024.

Global: The oil and gas sector, supported by the US Chamber of Commerce, persisted in its opposition to the Biden administration's pause on LNG export licensing, pushing for fossil fuel expansion. Simultaneously, at CERAWeek 2024, industry leaders defied climate guidance by promoting increased use of fossil gas, citing burgeoning demand from rapidly growing AI sector, while also vocalizing resistance to the administration's licensing pause for pending LNG projects.

US : The US oil and gas industry vowed to challenge finalized tailpipe emissions standards for light- and heavy-duty vehicles, expressing opposition to rules aimed at reducing transportation sector emissions. Industry campaigns, appealing to notions of freedom and consumer choice, preceded the announcements, with false claims of bans on fossil fuel vehicles and potential legal challenges looming.

Asia: At the 2024 Two Sessions in Beijing, Chinese oil, gas, and utilities sectors staunchly advocated for fossil fuel expansion while showing limited support for green energy alternatives. The predominant focus remained on bolstering coal, oil, and gas exploration and infrastructure, highlighting entrenched resistance to China's low-carbon transition efforts.

Policy Update: Notable updates on energy policy in the UK and US.

Global

Industry Continues Opposition to Temporary Pause on LNG

InfluenceMap analysis finds that the oil and gas sector, along with the US Chamber of Commerce, has continued to advocate in March to reverse the Biden administration's pause on pending liquefied natural gas (LNG) export applications. These persistent calls have been accompanied by statements pushing to expand fossil fuel production and infrastructure, which is misaligned with the science-based policy recommendations of the Intergovernmental Panel on Climate Change (IPCC). Details on prior industry opposition to the LNG pause can be found in InfluenceMap's January and February newsletters.

Fossil Fuel Climate Advocacy Update #17

February 2024

This briefing contains an overview of the corporate lobbying detected by InfluenceMap related to fossil fuels for the month of January 2024.

US Chamber led coalition letter urges reversal - A March 16th US Chamber of Commerce coalition letter - whose signatories included the California Chamber, Illinois Chamber, Maryland Chamber, and the Texas Association of Business - urged US Secretary of Energy Jennifer Granholm to reverse the pause. The letter argued that the pause would damage the country's relationship with its European and Asian allies and stated that it was "in the public interest" to undo the pause.

Fossil Fuel CEOs advocate for LNG ahead of State of the Union: Ahead of President Biden's State of the Union Address on March 7th, American Gas Association CEO Karen Harbert released a March press statement that urged the president to support fossil fuel expansion policies and to lift the LNG pause. In a separate March 6th press release in the lead up to the address, Independent Petroleum Association of America (IPAA) CEO and President Jeff Eshelman suggested that the LNG pause would undermine energy security in Europe, "embolden our adversaries" and allow ”less environmentally responsible producers” to cover a supply gap.

TXOGA echoes IPAA concern of ‘Strengthening Adversaries’: In a March 27th op-ed, Todd Staples, CEO of the Texas Oil & Gas Association (TXOGA), vehemently advocated to reverse the Biden administration's pause on pending LNG exports and stated that the halt in exports "strengthens America's adversaries." Staples also rejected the prevailing belief that LNG exports increased gas prices, asserting instead that they help maintain lower prices.

Fossil Fuels Climate Advocacy Update - Feb 2024

March 2024

This briefing contains an overview of the corporate lobbying detected by InfluenceMap related to fossil fuels for the month of February 2024.

NAM CEO Calls for Repeal of LNG Export Pause, Citing Poll Results: In a March 19th press release, National Association of Manufacturers (NAM) CEO Jay Timmons urged the Biden administration to repeal the pause on pending LNG export approvals, citing a poll conducted by NAM itself, which found that a majority of Americans were against the pause. Notably, the poll did not appear to have a clear explanation of the LNG pause and did not ask whether respondents opposed this action specifically.

During a March 20th hearing, Energy Secretary Jennifer Granholm indicated that a Energy Department study on the national interest in new liquefied natural gas (LNG) exports would conclude by year-end. InfluenceMap will continue to monitor this conversation for further developments.

Fossil Fuel Giants Defy Climate Guidance at CERAWeek 2024

At CERAWeek 2024, a global energy conference that took place from March 18 - 22 in Houston, Texas, several fossil fuel companies made statements pushing back against a low-carbon energy transition and the guidance of the Intergovernmental Panel on Climate Change (IPCC). Several of the statements are described below. InfluenceMap analysis of last year's CERAWeek is available in its March 2023 newsletter.

Fossil Fuels Climate Lobbying Update #7

April 2023

This briefing contains an overview of the corporate lobbying detected by InfluenceMap related to fossil fuels for the month of March 2023.

CEOs employ narrative promoting fossil gas to meet growing energy demands for Artificial Intelligence: In a March 18th interview, EQT CEO, Toby Rice, suggested that fossil gas demand for Data and Artificial Intelligence will likely grow and posited that AI would be a less volatile market than LNG exports, stating “they're not going to turn on and off.” In a March 27th E&E news article, ConocoPhillips CEO, Ryan Lance, referring to higher potential energy demand from AI, predicted that the US will have more energy generated from burning fossil gas than anywhere else globally in the next 5 to 10 years. This position was also echoed by Williams CEO Alan Armstrong.

Fossil Fuel CEOs assert of global and electoral ramifications following LNG review: As anticipated, the Biden administration's temporary halt on LNG export licenses, along with the subsequent discourse on LNG and its role in the energy mix, was a focal topic of discussion at CERAWeek. In a Bloomberg television interview from 14th March, ConocoPhillips CEO Ryan Lance advocated for the repeal of the US government's restrictions on permits for LNG export facilities, suggesting that the pause will lead to higher gas prices. Chevron's CEO, went even further in March 19th article by World Oil, suggesting that the move could erode the United States' global reputation as a dependable supplier and potentially lead to "unintended geopolitical consequences.”

Fossil fuel leaders justify continued LNG production with need to meet demand in Asia: According to a March 19th article from Hart Energy, Shell CEO Wael Sawan stated that LNG will be crucial in meeting energy demand in Asia as countries like Vietnam and Bangladesh transition from coal to fossil gas. A Bloomberg post from March 18th noted that Sawan supported a continued fossil gas usage, revealing Shell’s plans to expand its LNG business under the claim of emission reduction while aiming to sustain oil production. Sawan emphasized the enduring demand for fossil fuels, portraying them as a “stabilizing force” in the energy sector. An AFR article from March 2024 highlighted Santos CEO Kevin Gallagher advocating for new exploration and production of gas in the US and Australia to meet demand in Asia, along with investments in infrastructure, without acknowledging the potential to lock in unabated fossil gas emissions.

According to a March 27th article from InsideClimateNews, during the conference EQT CEO Toby Rice referred to the decision as “misguided” and called for an immediate end to the pause. In a Bloomberg article from March 21st, Rice appeared to suggest that the temporary halt could potentially harm President Biden's electoral prospects.

Industry promoting fossil gas as crucial cog for transition to low-carbon: The Chairman of China National Offshore Oil Corporation (CNOOC)’s think tank, CNOOC Energy Economics Institute, endorsed fossil gas to facilitate China’s low-carbon energy transition. As reported by S&P Global on March 19th, AES Corp advocated for a long-term role for fossil gas in different regions, stating that "in many cases, the low-hanging fruit Is transitioning from coal and fuel oil to natural gas." Furthermore, according to a Forbes article from 22nd March, Chevron’s president for International Exploration and Production asserted the crucial role of fossil gas in the energy mix, describing it not just as a transitional fuel but as a long-term "destination." These perspectives are misaligned with the IPCC’s guidance. While the IPCC acknowledges natural gas's potential as a transitional fuel due to lower emissions than coal, it emphasizes the imperative of mitigating emissions, particularly methane leaks, and halting venting and flaring. The IPCC recommends a shift to renewable energy sources like wind and solar power, alongside energy efficiency measures, for a transition away from natural gas. According to a Reuters article from March 18th, Woodside CEO, Meg O'Neill acknowledged the inevitability of transitioning to clean fuels but appeared to criticize the pace of transition, labeling the belief in a rapid transition as “simplistic.” This contrasts with the urgency highlighted by the IPCC, which indicates that limiting global warming to 1.5°C necessitates rapid and comprehensive transitions across sectors, suggesting that while unprecedented in scale, such transitions are not unprecedented in terms of speed.

All these positions are misaligned with IPCC guidance: while the IPCC acknowledges fossil gas's potential as a transitional fuel due to lower emissions than coal, it emphasizes the imperative of mitigating emissions, particularly methane leaks, and halting venting and flaring. It recommends a shift to renewable energy sources like wind and solar power, alongside energy efficiency measures, for a transition away from fossil gas.

United States

Oil & Gas Industry Vows Legal Challenge Against US Emissions Standards for Light- and Heavy-duty Vehicles

In March, the US Environmental Protection Agency (EPA) unveiled two finalized rules targeting tailpipe emissions from light- and heavy-duty vehicles. These rules aim to reduce US transport sector emissions, which are responsible for the largest share (29%) of GHG emissions in the country. The light-duty vehicles (LDV) standards, announced on March 20, target passenger cars and small trucks and push for two-thirds of new passenger vehicle sales to be electric vehicles by 2032. EPA followed this with the announcement of the final “Phase 3” emission standards for heavy-duty vehicles (HDV) for model years 2027-2032 on March 29th.

The US oil and gas industry reacted negatively to the announcements. The American Petroleum Institute (API) and American Fuel and Petrochemical Manufacturers (AFPM) released joint statements opposing the rule. The API’s press statement on the LDV rule, released on March 20, called to repeal the rule, claiming that the rule is going to “feel and function like a ban” on new gas cars and hybrids. On March 29, API and AFPM’s statement on the HDV rule called for Congress to overturn the “misguided” rule. In both these statements, AFPM and API expressed their openness to challenging the rules in court. Press releases from Consumer Energy Alliance said the final HDV rule was imposing “unworkable climate promises” and reducing “economic and social freedoms” and opposed the LDV rule, stating the high cost of EVs.

‘Bans,’ ‘Freedom to Drive,’ and Cables: Industry’s Ongoing Campaigns Against the Tailpipe Rules

The oil and gas industry’s influencing campaigns against the tailpipe rules for light- and heavy-duty vehicles, began well before the announcement of the final rule. In a March press release, AFPM’s CEO Chet Thompson announced the launch of a second round of issue ads on what he falsely referred to as “a ban” on new fossil fuel powered vehicles. The campaigns have often claimed the reduction of consumer choice to mobilize public opposition to the rule. AFPM commissioned a national survey in December 2023 using a questionnaire that wrongly portrayed the EPA’s new performance-based emissions standard as a “ban” on ICE vehicles to the survey respondents. Using these survey results announced in a press release, AFPM appealed to policymakers to vote in favor of the proposed Choice in Automobile Retail Sales Act (CARS Act) that would weaken the EPA’s tailpipe emission standards.

In a statement released in February, API President Mike Sommers stated that the tailpipe standard would “restrict Americans’ freedom to drive” and “how they choose.” An ExxonMobil ad from July 2023 released for its Mobil 1 motor oil brand portrayed people tethered to heavy cables and appeared to criticize EVs, although the ad did not directly reference the tailpipe rule. However, ExxonMobil’s comments to the EPA during the same month advocated to weaken the standards by including internal combustion engine (ICE) and hybrid vehicles in the proposal. In June 2023, Consumer Energy Alliance released a report titled “Freedom to Fuel: Consumer Choice in Automotive Marketplace” that advocated against the tailpipe standards, claiming that the benefits of EV transition would “shift from working class to wealthy.”

InfluenceMap’s detailed analysis of industry responses to both these rule proposals can be accessed through the US Policy Platform at the following links: HDV standards and LDV standards.

Asia

Chinese Oil and Gas, Utilities Sectors Persist in Advocating for Fossil Fuel Expansion at 2024 Two Sessions

At the March 2024 Two Sessions in Beijing, delegates from the Chinese oil and gas and utilities sectors persistently advocated for fossil fuel expansion while also expressing some backing for green energy alternatives. The overarching theme of prioritizing coal, oil, and gas exploration and infrastructure underscores the persistent resistance of fossil fuel interests to China's low-carbon transition, despite some delegates advocating for green hydrogen and other renewable energy sources.

PetroChina advocated for policy backing to establish Energy Super Basins encompassing both renewable energy and fossil fuels. The company put forth several proposals favoring fossil gas, calling for financial assistance for natural gas exploration and positioning natural gas investment as a form of green finance. Yet these suggestions lacked clarity on the need for Carbon Capture and Storage (CCS) or methane abatement measures. Additionally, PetroChina called for policy support for coalbed methane exploration and the extraction of shale oil and gas.

Sinopec similarly advocated for policy and financial backing for shale oil exploration while also displaying heightened interest in hydrogen policy this year. It supported using hydrogen to decarbonize transport, however, it did not state the need to fully decarbonize hydrogen production. In another proposal, the company called for policy support for green hydrogen production without specifying its intended application sector.

In the utilities sector, Huaneng voiced support for a continued role for coal, proposing technological enhancement to improve the efficiency and flexibility of coal-fired power plants. Meanwhile, Datang advocated for a blend of coal and renewable energy for heating purposes in North China.

Policy Update

Highlighted below are some general policy updates from the UK and the US:

UK Government Backs New Gas Power Stations: As part of the second consultation on the Review of Electricity Market Arrangements (REMA), the UK Government announced a plan on March 12th that it is “committed to support the building of new gas power stations to maintain a safe and reliable energy source for days when the weather forecast doesn’t power up renewables.” The plan firstly aims to broaden “existing laws requiring new gas plants to be built net-zero ready and able to convert to low carbon alternatives in the future such as carbon capture and hydrogen to power. Secondly, these gas power plants will run less frequently as the UK continues to roll out other low carbon technologies.” The CEO of Offshore Energies UK (OEUK) commented on the announcement, supporting new infrastructure that will risk locking in unabated fossil gas and advocated to replace ageing power stations with new fossil gas power plants. The second consultation of REMA closes on May 7th. InfluenceMap will continue to track engagement.

US power plant rules shake-up: Following the Environmental Protection Agency (EPA)'s February 29th announcement that it would remove the existing gas rule from its proposed power plant carbon standards in order to re-propose a comprehensive rule that addresses more categories of pollutants, the agency opened a non-regulatory docket to receive input on the design and scope of such a rule. This docket is scheduled to close on May 28, 2024, and requests comment. In the meantime, the standards for existing coal and new gas are expected to be finalized sometime in April. InfluenceMap continues to track engagement on these regulations on this policy platform page.