For decades, the relationship between the American government and the fossil fuel industry has remained intact, without any consequences or deterrence. Both federal and state governments continue to support and enable the production and consumption of oil, natural gas, and coal, despite being fully aware of the irreversible harm caused to life on a global level.
The Teapot Dome scandal revolved around the bribery of a sole public official within the oil industry. In present times, the oil industry possesses the ability to sway elected officials through unrestricted campaign contributions, persistent lobbying, and costly advertising campaigns aimed at enhancing the industry’s reputation.
Related posts
According to Open Secrets, the oil and gas industry has invested over a trillion dollars in election campaigns from 1990 to the present month. It is reported that five major oil companies have spent at least $3.6 billion on advertising between 1990 and 2020. Despite scientific findings indicating the need to preserve most of the world’s underground fossil fuel reserves, the U.S. oil and gas industry continues to engage in drilling activities. In fact, according to data analysis firm Statista, the industry has been generating an average of $2.8 billion in daily profits over the past 50 years. Statista also reveals that the industry has consistently surpassed a trillion dollars in annual revenue throughout much of the previous decade.
The industry had the opportunity to use these substantial investments and profits to take the lead in the global clean-energy transition. However, instead of seizing this opportunity, it engaged in a prolonged campaign to mislead policymakers and the American public, while also attempting to silence critics through intimidation.
Congress has taken little action to phase out fossil fuels through mandates or market forces. Instead, it continues to provide the industry with billions of dollars in annual tax breaks, which further incentivize oil and gas production. Furthermore, the industry is allowed to externalize over $750 billion in social and environmental damages. These damages are not accounted for in the market price of these fuels, making it difficult for cleaner alternatives to compete. In fact, in 2022, these hidden costs amounted to $2,243 for every individual in the United States. Despite opportunities to address this market “imperfection” through carbon pricing in 2003, 2005, 2007, and 2009, Congress has consistently failed to take action.
Before the era of industrialization, the atmosphere contained 280 parts per million (ppm) of carbon dioxide (CO2). By the 1980s, this level had risen to 350 ppm, which was still regarded as a safe threshold. However, despite global commitments to reduce CO2 emissions, scientists predict that this year the concentration will reach approximately 427 ppm, a level not seen in millions of years.
Oil producers are currently playing public relations games in relation to their impact on climate change. When oil prices were low, major producers embraced the concept of “net zero carbon,” but they quickly changed their tune and achieved record-breaking profits when prices rose. Unfortunately, their production plans contradict their promises of achieving net-zero emissions. The Center for Climate Integrity points out that while Exxon claims to support the Paris Agreement, it simultaneously boasts to investors about its intention to increase oil and gas production by 25% by 2030. Such a scenario would be disastrous for the climate.
Oil majors allegedly contribute hundreds of millions of dollars to top universities in an effort to establish connections that could potentially hinder climate action. Exxon CEO Darren Woods is attempting to deflect responsibility for climate change onto energy consumers, suggesting that they should bear the consequences for their emissions. According to Grist, oil companies argue that the issue lies with demand – as long as people continue to drive cars and rely on fossil fuels, the production of gasoline must persist.
A 2.5-year investigation conducted by Democrats in Congress has unveiled the oil and gas industry’s deceptive practices, which targeted investors, Congress, and the American people. The industry employed a covert operation characterized by “deception, disinformation, and doublespeak.” Through the use of “dark money,” phony front groups, and relentless political influence, they aimed to obstruct climate progress. These alarming findings raise the need for a thorough investigation by the Justice Department to assess whether the industry violated any laws, including those pertaining to racketeering.
However, it is highly unlikely that this will occur before the election. It is the responsibility of the voters to put an end to this scandal by electing a president, Congress, and legislators who are supportive of policies such as these.
-
- Put a price on carbon, as Europe has done. Its emission trading regime produced a 15.5 percent cut in carbon emissions from polluting industries and power plants last year and a 47 percent reduction since 2005, when emissions trading began.
- End federal tax subsidies for fossil fuel production.
- Stop leasing public lands for fossil-energy production and suspend all unused leases.
- Codify state and national “just transition” plans to end all but the most essential fossil energy production in the United States.
According to U.S. Representative Jamie Raskin, the insatiable greed of the industry has brought us to the brink of a “civilizational emergency.” We are on the verge of a world where extreme heat, floods, storm surges, wildfires, drought, and rising sea levels become the new normal. If we fail to put an end to Big Oil’s deceitful practices, we will pass the point of no return.
William Becker, a former senior official at the U.S. Department of Energy, currently serves as the executive director of the Presidential Climate Action Project (PCAP). Established in 2007, PCAP is a nonpartisan initiative that collaborates with national thought leaders to formulate suggestions for national climate and energy policies.
