Exxon’s unhealthy status obtained in the best way of its industry-wide carbon seize proposal

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Environmental activists rally for accountability for fossil fuel companies outside of New York Supreme Court on October 22, 2019 in New York City.
Enlarge / Environmental activists rally for accountability for fossil gas corporations outdoors of New York Supreme Court docket on October 22, 2019 in New York Metropolis.

Drew Angerer / Getty Photos

ExxonMobil has been the prime goal of activists and politicians angered by the oil {industry}’s efforts to dam motion on local weather change. Now, newly disclosed paperwork verify that the oil firm’s reputational woes have prolonged into the {industry} itself and threatened to derail Exxon’s largest local weather proposal so far.

Final yr, Exxon struggled to realize assist from its friends when it proposed a cross-industry effort to construct a carbon seize and storage hub in Houston, in accordance with paperwork launched by the Home Committee on Oversight and Reform, which has been investigating the oil {industry}. High executives at Shell, specifically, anxious that becoming a member of with Exxon would current an “unacceptable threat” to the European oil main’s status.

“I’m not fascinated with collaborating with any advocacy effort led by” Exxon, wrote Krista Johnson, Shell’s head of US authorities relations, in a July 2021 electronic mail to Gretchen Watkins, president of Shell USA. Johnson stated their competitor was persevering with to attract destructive headlines and that “zero corporations” had been ready to affix an Exxon-led consortium at the moment.

A month later, Watkins stated she opposed any public participation with Exxon. “Their status is severely broken right here,” she wrote to colleagues within the Netherlands, the place Shell was headquartered on the time, “and we are going to solely do hurt to the power of Shell’s US status.” (Shell later moved its headquarters to London.)

In April 2021, Exxon proposed a $100 billion public-private partnership to construct what would grow to be the world’s largest carbon seize and storage “hub” in Houston. The plan was to put in tools to take away carbon dioxide from smokestacks on the area’s largest energy crops, refineries, and different industrial operations earlier than it reached the ambiance. The fuel would then be compressed and despatched by pipelines to wells drilled beneath the Gulf of Mexico, the place it might be injected underground for everlasting storage. The corporate stated the trouble might finally stop as much as 100 million metric tons of carbon dioxide emissions yearly by 2040, however would wish the area’s largest company polluters to take part.

The proposal has drawn substantial skepticism and criticism from environmental advocates, who say carbon seize is unlikely to ever attain the dimensions proposed by Exxon. They’ve warned that authorities subsidies for the know-how could be a waste of local weather funding, and have argued that Exxon was utilizing carbon seize to burnish its picture, somewhat than drive actual emissions reductions.

The paperwork recommend that some inside the oil {industry} shared these issues, even when they supported carbon seize and storage as a local weather resolution.

Watkins, in her August 2021 electronic mail, stated “I totally assist our engagement” with potential carbon seize investments in the USA, however suggested steering away from Exxon’s public announcement. She feared that Exxon was trying to enhance its picture by showing alongside Shell, she wrote, forward of a potential Congressional listening to the place oil executives would possibly testify.

One other electronic mail, from Marnie Funk, a senior adviser for presidency relations at Shell, stated that Chevron was “internally divided” on whether or not to affix Exxon’s effort, with “Some minor unease in some Chevron quarters about Exxon reputational issues.”

Funk additionally stated Chevron seen Exxon’s claims about how a lot carbon dioxide the challenge might seize, and what number of jobs it might create, as “inflated—however innocent inflation.”

Chevron and Shell declined to remark for this text.

The emails say Exxon executives had been calling all of the Houston space’s high oil and chemical corporations to get them to publicly pledge their assist for the carbon seize proposal. The hassle received the assist of 11 corporations, together with Chevron, that launched a joint assertion in September 2021. Shell initially declined to affix the trouble, however by January, it had apparently been satisfied, too, and publicly introduced its assist.

In line with Funk’s electronic mail, the September announcement was meant because the “first step” of an {industry} marketing campaign to safe an expanded federal tax credit score for carbon seize and new rules that may enable corporations to inject carbon dioxide beneath the Gulf of Mexico.

The Houston hub was “fully dependent” on securing these modifications, Funk wrote, and the {industry}’s lobbying marketing campaign was in the end profitable on each fronts. The carbon seize tax credit score was expanded this yr by the Inflation Discount Act, and the Inside Division is within the technique of drafting guidelines for carbon dioxide storage beneath federal waters.

The one Houston oil main that didn’t be part of the trouble was BP, which declined to remark for this text.

The paperwork had been launched earlier this month as a part of an investigation by the Home committee into the oil {industry}’s alleged marketing campaign to unfold disinformation about local weather change. They had been accompanied by a memo which stated, “These paperwork show how the fossil gas {industry} ‘greenwashed’ its public picture with guarantees and actions that oil and fuel executives knew wouldn’t meaningfully scale back emissions, even because the {industry} moved aggressively to lock in continued fossil gas manufacturing for many years to return.” The memo was presumably the ultimate act of the investigation earlier than Republicans take management of the Home subsequent yr, when they’re anticipated to curtail the committee’s work.

Todd Spitler, an Exxon spokesman, declined to touch upon Shell’s inside discussions, however stated in an electronic mail that “The Home Oversight Committee report has sought to misrepresent ExxonMobil’s place on local weather science, and its assist for efficient coverage options, by recasting effectively meant, inside coverage debates as an tried firm disinformation marketing campaign.” He added, “Our CEO has testified below oath on this topic throughout two all-day Congressional hearings earlier than two separate committees, we’ve been in common communication with the committee for over a yr, and have supplied workers with multiple million pages of paperwork, together with board supplies and inside communications.”

Past the drama between corporations, the paperwork launched by the committee additionally make clear the oil {industry}’s sustained efforts to advertise carbon seize and storage. For years, the paperwork present, corporations noticed the know-how as a method of enabling continued fossil gas consumption, even because the world’s transition to cleaner vitality grew extra pressing. However the one method carbon seize might succeed, the businesses stated, was by profitable substantial authorities funding and public assist.

In 2016, for instance, a Princeton College program that’s sponsored by BP despatched the corporate recommendation on tips on how to tackle local weather change. One of many suggestions was to “Perceive the potential for CCS,” or carbon seize and storage, “to allow the complete use of fossil fuels throughout the vitality transition and past.”

A 2017 Shell doc titled “US Gulf Coast CCS Alternative Framing” stated “the window for CCS to stay related with governments and society is closing rapidly,” and that motion was wanted inside a decade. “The worth of CCS to Shell is the power to decarbonize our merchandise, retain a bigger market share for our merchandise within the vitality transition, along with reputational worth,” it stated.

Two years later, a notice to Shell’s government committee stated carbon seize in the USA confronted “financial challenges,” however that the corporate would proceed to pursue a Gulf Coast challenge due to the potential of future incentives and the “potential want for CCS on crucial Shell initiatives.”

The paperwork additionally embody a 2018 replace on a Nationwide Petroleum Council report about carbon seize and storage, written by John Mingé, a former chief of BP America who led the petroleum council examine. Along with decreasing emissions, the doc stated, extensive deployment of carbon seize know-how might assist enhance US oil manufacturing, safe the export of fossil fuels to nations with stringent local weather insurance policies and permit for continued use of “present infrastructure over the long run.”

Mingé’s replace really helpful “simplifying the narrative” about carbon seize, as a part of an effort to win assist for the know-how throughout academia, environmental teams, governments and the monetary sector.

The petroleum council report, revealed in December 2019, went on to grow to be a foundational doc for the {industry}’s lobbying during the last two years. Over that interval, Congress and the Biden administration have allotted more cash to carbon seize than every other authorities in historical past.

Nicholas Kusnetz is a reporter for Inside Local weather Information. Earlier than becoming a member of ICN, he labored on the Middle for Public Integrity and ProPublica. His work has received quite a few awards, together with from the American Affiliation for the Development of Science and the Society of American Enterprise Editors and Writers, and has appeared in additional than a dozen publications, together with The Washington Publish, Businessweek, The Nation, Quick Firm and The New York Instances. You may attain Nicholas at nicholas.kusnetz@insideclimatenews.org.

This story initially appeared on Inside Local weather Information.

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