US oil industry split over climate change

A RIFT has broken out within the US oil industry over a plan outlined in a leaked memo to deploy thousands of workers in so-called…

A RIFT has broken out within the US oil industry over a plan outlined in a leaked memo to deploy thousands of workers in so-called “Energy Citizen” rallies protesting against imminent climate change legislation.

The American Petroleum Institute (API), which represents the US oil industry, has written to member companies asking them to “move aggressively” to stage up to 22 public meetings, similar to the recent protests against President Barack Obama’s healthcare plans.

The move is strongly supported by API core members such as ExxonMobil, which has warned that the legislation could put businesses employing millions of workers “at a disadvantage” with competitors.

But the plan is exposing splits in the organisation, as some members belong to another group, the US Climate Action Partnership (Ucap), which supports many of Mr Obama’s environmental policies.

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Shell, a leading member of Ucap, has argued that tackling climate change is “the pro-growth strategy”. Other Ucap companies include General Electric, Siemens, BP America and ConocoPhillips. Yet all also provide funding to API.

“The truth is that the API is all over the place on this issue. There is nowhere near a unanimous view,” said one oil industry source.

Some saw imminent environmental laws as “the work of the devil”, while others took a more progressive view.

The secret memo was passed to environmental group Greenpeace despite the entreaties of author Jack Gerard, president of the API, to “treat this information as sensitive . . . we don’t want critics to know our game plan”.

Greenpeace criticised the strategy as cynical, arguing it would predominantly feature energy workers rather than “grassroots” citizens.

The rallies are designed to protest against “unsound energy policy” such as tax increases on the industry and the Waxman-Markey Bill, which will create a carbon trading scheme and force energy groups to produce some renewables.

The memo says that a turnout of several hundred employees at each rally will be crucial: “In the 11 states with an industry core, our member company local leadership . . . is essential to achieving the participation level that senators cannot ignore.” – Copyright The Financial Times Limited 2009