US President Donald Trump’s withdrawal of the US from the Paris climate agreement has raised concerns among major US oil companies.
The decision, aimed at boosting domestic energy production, contrasts with the industry’s investment plans for cleaner energy and global climate cooperation.
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Big oil companies in the US say that President Trump’s decision to exit the Paris climate deal for a second time could hinder their plans for transition to cleaner energy.
This marks a notable divergence from the administration’s pro-fossil fuel stance and reflects the industry’s desire for stability in long-term investment planning.
Marty Durbin, president of the US Chamber of Commerce’s Global Energy Institute, which represents US energy companies, stated: “While we prefer that the US Government remain engaged in the UN climate process, the private sector is committed to developing the solutions necessary to meet the energy needs of a growing global economy while addressing the climate challenge.”
Bethany Williams, a spokesperson for the American Petroleum Institute, which counts ExxonMobil and Chevron among its members, affirmed the group’s support for the Paris Agreement’s objectives.
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By GlobalDataLast year, Exxon CEO Darren Woods, speaking at the COP29 climate summit in Azerbaijan, urged the newly elected president to maintain US participation in the Paris pact.
He warned that the cycle of exiting and re-entering the agreement creates policy uncertainty, complicating long-term investment decisions in climate change mitigation technologies.
The American Exploration and Production Council (AXPC), representing US independent drillers, also emphasised the importance of the US industry’s involvement in global climate discussions.
AXPC CEO Anne Bradbury added: “It is critical that any conversation about addressing climate change must be global in nature, and also recognise that America is the world leader in both energy production and emissions reductions.”
Wynne Lawrence, a climate liability risk specialist at Clyde & Co, highlighted the increased regulatory ambiguity and potential for legal disputes resulting from the US withdrawal.
Earlier this week, President Trump introduced a detailed plan to prioritise and increase oil and gas output in the US, rolling back Biden-era initiatives to reduce reliance on fossil fuels.
