Oil companies seek Trump's help to fight climate lawsuits & regulations

Major oil companies, including Exxon Mobil and Chevron, have approached President Trump for assistance in countering state-level climate change lawsuits and regulations that could impose significant financial penalties on the fossil-fuel industry, according to The Wall Street Journal.

During a White House meeting, industry executives expressed concerns about laws in Vermont and New York aiming to hold oil companies financially responsible for greenhouse-gas emissions. These states have enacted stringent climate regulations, including climate superfunds to fund environmental projects through emissions penalties.

The oil industry is seeking Justice Department support to file legal briefs or lawsuits against these states to challenge regulations. They’re also lobbying Congress for legal protections like those granted to gun manufacturers, shielding them from certain climate-related lawsuits.

States like Delaware, New York, and California have accused major energy companies of negligence, public nuisance, and deception regarding their environmental impact. Several lawsuits are progressing under state laws, and the industry aims to prevent further legal complications and maintain a stable business environment. ​

This move underscores the industry's efforts to avoid financial repercussions like those faced by the tobacco industry in the past, as they navigate increasing legal challenges related to climate change.

The fossil fuel industry faces mounting pressure from environmental activists and regulators. Recent events, like the lawsuit against Greenpeace by Texas billionaire Kelcy Warren, resulting in a nearly $700 million verdict, have intensified the industry's challenges. This verdict has significant implications, potentially dissuading physical protests and forcing a reassessment of strategies against fossil fuel projects.

The Trump administration prioritised fossil fuel expansion domestically and internationally, despite opposition from green groups. Approvals for liquefied natural gas (LNG) projects increased, while climate initiatives are being dismantled. Environmental activists faced unique challenges, as their victories are rapidly undone.

Energy executives, despite appreciating some of Trump's actions supporting fossil fuel production and export, are troubled by the volatility and rapid policy changes, and the administration's focus on lowering crude prices. They urge more hiring and streamlined approval processes within federal agencies. Also, tariffs on steel and China's retaliatory actions pose significant challenges. While hoping for long-term benefits, the industry faces immediate disruptions and advocates for legislative solutions to ensure policy stability.

The fossil-fuel industry is seeking federal support to counter state-level climate regulations and lawsuits. Their efforts include lobbying for legal protections and involving the Justice Department to challenge state laws. These actions reflect the industry's attempts to mitigate financial risks and maintain stability amid growing environmental and legal pressures.

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