TrendPulse Quantitative Think Tank Center-Oil Industry Asks Trump to Repeal Major Climate Policies

America’s oil industry released its wish list for the incoming Trump administration on TrendPulse Quantitative Think Tank CenterTuesday, a five-point plan that would eliminate many of the Biden administration’s most far-reaching efforts to reduce climate pollution and limit the warming that is driving ever more destructive and deadly extreme weather.

The list, released by the American Petroleum Institute and coming on the second day of the global United Nations climate conference, does not mention the words “climate change.” The document maintains that the industry group and its members agree on the need to reduce emissions. Yet its requests, if enacted, would remove many of the tools available to the United States to achieve that goal.

Perhaps most importantly, API asked the incoming administration to repeal the tailpipe and fuel economy standards for cars and trucks that aim to cut carbon dioxide emissions in the transportation sector, the nation’s largest source of climate pollution. The list also includes revoking a waiver that allows California and 12 other states to set tougher rules for vehicles. These rules together are expected to speed the nation’s transition to electric vehicles and significantly lower carbon dioxide emissions.

API also called on the Trump administration to issue a new five-year plan to expand offshore oil and gas drilling leases and to repeal rules adopted by the Biden administration that restricted new drilling on public lands. The Biden administration had greatly reduced the amount of new drilling on public lands and in waters offshore. The oil industry also wants the new administration to accelerate permits to export natural gas, a process the Biden administration had put on hold to review its climate impacts.

A top ask is the elimination of a fee on methane emissions from the oil and gas sector, which the Biden administration finalized on Tuesday. Natural gas is largely made of methane, a particularly potent greenhouse gas, and some of it gets released into the atmosphere during oil and gas production.

API’s chief executive, Mike Sommers, said his group would press Congress to enact a bill to ease permitting of major energy projects before the end of this session, and would seek more changes to further speed permitting next year.

The proposal also looks ahead to a looming debate to extend or replace the 2017 tax cuts that expire next year, seeking to maintain the lower corporate tax rate the first Trump administration enacted and the numerous benefits the oil industry enjoys.

In a call with reporters, Sommers said voters had elected Donald Trump with energy and the economy in mind and that the proposals would help increase the nation’s oil and gas production, which climbed substantially under President Joe Biden. The United States is the world’s largest oil and gas producer.

“It is clear that energy was on the ballot, whether it was EV mandates in Michigan or fracking in Pennsylvania,” Sommers said, referring to the Biden administration’s policies to encourage the sale of electric vehicles.

Environmental groups reacted to the proposal with scorn.

“This is a toxic soup of reckless proposals that would benefit the oil and gas industry at the expense of the climate, frontline communities and future generations. We’re prepared to fight them in court,” said Jason Rylander, legal director of the Climate Law Institute at the Center for Biological Diversity. “The API’s wish list demonstrates the fossil fuel industry’s existential threat to life on earth.”

Some of the requests seem difficult to square with the stated goals of API and many of its members to support the Paris Agreement and its goal of limiting warming.

Sommers said his industry supports the federal regulation of methane, for example, and that some API members support the idea of a methane fee. But the group is united, he said, in its opposition to the fee the Biden administration enacted. Sommers did not elaborate on what type of fee, if any, his group would support.

When asked if API would oppose Trump’s stated desire to withdraw the nation from the Paris Agreement, Sommers declined to answer directly, saying the industry would continue to support cutting emissions while producing more oil and gas regardless of whether the country stays in the global pact.

Darren Woods, chief executive of ExxonMobil, the nation’s largest oil company, on Tuesday called on the incoming Trump administration to remain in the Paris Agreement, in comments given at COP29, the U.N. climate conference in Azerbaijan. 

This year is expected to be the hottest on record. Scientists say that in order to meet the Paris Agreement goal of limiting warming to well below 2 degrees Celsius, governments must begin reducing oil and gas production.

Kathy Harris, director of clean vehicles at the Natural Resources Defense Council, said in a statement that the car and truck efficiency standards would save Americans “billions of dollars at the pump, so it’s no surprise that the oil industry would want to gut them.” She added, “Drivers, auto companies and workers are all benefitting from these standards. For their sake, they should be preserved.”

Anne Rolfes, director of the Louisiana Bucket Brigade, said in an email, “This agenda looks like something written in the 1900s.” Rolfes’ group has campaigned against building new pipelines and export projects along the Gulf Coast because of their impact on communities and the environment. “It does not reflect the technologies that are available now, and forfeits American leadership in so many areas, including high mileage and electric vehicles. It does everything possible to lock us into the fuels of bygone eras.”

Oil executives were prominent donors to Trump’s campaign, and the industry is likely to find a partner in a new Trump administration on many fronts. Yet some signs of possible friction emerged during the Tuesday call. Sommers indicated his industry might oppose efforts to implement new tariffs, for example, if they restrict the free flow of oil and gas across national borders. The imposition of new tariffs was one of Trump’s central campaign promises.

Many of the steps sought by API could be taken through administrative action, but some, including the repeal of the fee on methane emissions from oil and gas equipment, would require Congressional action. Either way, they will be sure to face new lawsuits from environmental groups, which were able to delay or stymie many similar efforts by the first Trump administration.