Big Oil’s most powerful Washington lobby group is insisting it can still represent European energy majors, even as some of its most important members such as BP tilt to a greener agenda that is at odds with some of its major policy positions. The American Petroleum Institute’s president, Mike Sommers, told the Financial Times in an interview that the mood shift was not going to change the group’s fundamental mission.
With 600 members and more than $2oom in annual revenue, API is the biggest energy trade association and questions over its future could reverberate across the industry. Partly a standards-setting body, its mission is also to “influence public policy in support of a strong, viable US oil and natural gas industry,” according to a filing to tax authorities.
BP chief executive Bernard Looney announced last week his company would eradicate emissions associated with its business by 2050 and launched a fundamental shift in corporate strategy – and executive leadership – to meet the goal.
This week, it intends to follow up with a review of its memberships in groups such as APL It is prepared to quit those at odds with its new climate agenda, the UK oil major said, and seek policy shifts at others.
Environmental Defense Fund, a green advocacy group, said BP’s pledge meant it needed to actively support public policy to reach net zero emissions. “The rest of the industry should take note: hiding behind trade associations is no longer an option,” EDF’s Ben Ratner wrote. Mr Sommers set out an uncompromisingstall against those pushing API to emphasise a shift away from fossil fuels. “The P in API is petroleum,” he said. “And I think that we’ll continue to represent this industry for many, many years to come.”