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In major reversal, oil industry group backs federal price on carbon emissions - The Advocate

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WASHINGTON — The oil and gas industry's top lobbying group on Thursday endorsed a federal price on carbon dioxide emissions that contribute to global warming, a reversal of long-standing industry policy that comes as the Biden administration has pledged dramatic steps to address climate change.

The American Petroleum Institute, whose members include Exxon Mobil, Chevron and other oil giants, announced the shift ahead of a virtual forum Thursday by the Interior Department as it launches a monthslong review of the government’s oil and gas sales.

API also called for fast-tracking commercial deployment of long-sought technology to capture and store carbon emissions; advancement of hydrogen technology; and federal regulation of methane emissions from new and existing oil and gas wells. The industry also pledged to reduce flaring at drilling sites that has released vast quantities of harmful methane gas emissions into the air after strongly resisting regulations on methane proposed by the Obama administration.

“Confronting the challenge of climate change and building a lower-carbon future will require a combination of government policies, industry initiatives and continuous innovation,” API President and CEO Mike Sommers said in a statement.

Sommers emphasized that the industry seeks “market based” solutions such as a carbon tax or a cap-and-trade policy, rather than "heavy-handed government regulation.'' The oil industry played a key role in the defeat of proposed cap-and-trade legislation in the Senate a decade ago, and its endorsement of a carbon price and other federal action marks a turnaround after years of opposition to federal legislation to address climate change.

The reversal comes as the Biden administration made tackling climate change a top priority, moving in its first days to suspend oil and gas lease sales from federal lands and waters and canceling the contentious Keystone XL oil sands pipeline from Canada.

Interior Secretary Deb Haaland on Thursday kicked off a broad review of the government’s oil and gas program that could lead to a long-term ban on leases or other steps to discourage drilling and reduce emissions.

“Too often the extraction of resources have been rushed to meet the false urgency of political timetables rather than careful consideration for the impacts of current and future generations,” she said.

Industry representatives and Republican lawmakers have sharply criticized the lease suspension and warn that widespread job losses are likely in energy-producing states should it become permanent.

Why Joe Biden's oil and gas moratorium is expected to have long-term effects on Louisiana's economy

Ahead of the forum, the White House hosted a videoconference meeting Monday with executives from 10 of the industry’s biggest companies. White House climate adviser Gina McCarthy “made clear that the administration is not fighting the oil and gas sector."

Despite the moratorium on new leases, the Biden administration has continued to issue permits for existing leases, including more than 200 in March, records show.

Thirteen states, led by Louisiana Attorney General Jeff Landry, sued the Biden administration Wednesday to end the leasing suspension.

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