OIL INDUSTRY GROUP BACKS U.S. FEDERAL PRICE ON CARBON

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 longstanding industry policy that comes as the Biden administration has pledged dramatic steps to address climate change.

The American Petroleum Institute (API), whose members include ExxonMobil, Chevron, and other oil giants, announced the shift ahead of a virtual forum Thursday by the Interior Department as it launches a months-long review of the government’s oil and gas sales, Matthew Daly and Matthew Brown reported for the Associated Press (AP).

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.

He 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.

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