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Thursday, November 14, 2024

#COP29BAKU--Big Oil Goes Green---NIX TO TRUMP DOCTRINE ON PARIS AGREEMENT

//WHITELIGHTNING AI RESEARCH//IMMEDREL//11/14/24/1615PST//

#COP29Baku Big Oil Goes Green 11/14/24/1615PST: Major US oil companies object to two-faced government policies with #Trump plans in the pipeline to ditch IRA and Paris Agreement. Shell, Exxon, others urge staying the course, #COP29Azerbaijan.
(image credit: Adobe Stock)

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oil companies oppose trump withdrawal from paris agreement


Recent news indicates that major oil companies, particularly ExxonMobil, are opposing President-elect Donald Trump's potential plan to withdraw the United States from the Paris climate agreement for a second time. Here are the key points:ExxonMobil's Stance
  • ExxonMobil CEO Darren Woods has urged Trump not to pull the U.S. out of the Paris Agreement again
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  • Woods emphasized the need for a global framework to manage emissions and suggested that Trump could apply a "common-sense" approach to climate policy
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  • He warned that constant policy changes create inefficiency and uncertainty for businesses
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Reasons for Opposition
  • Woods argued that the "stops and starts" in climate policy are not beneficial for businesses, creating inefficiency and uncertainty
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  • A second U.S. exit from the Paris Agreement could have significant implications for both domestic and international climate efforts
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  • The oil industry seems to prefer policy stability and predictability, even if it involves climate regulations
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Industry Perspective
  • The American Petroleum Institute (API) stated that they support the ambitions of the Paris Agreement, including global action to reduce greenhouse emissions
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  • Other oil companies like Shell have previously expressed support for the Paris Agreement and climate action
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Context and Implications
  • This stance represents a shift from the industry's previous positions, as oil companies now seem more aligned with climate goals
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  • The industry's opposition to withdrawal comes despite Trump's promises to "unleash U.S. energy dominance" and increase drilling
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  • ExxonMobil and other companies have invested in projects aimed at reducing emissions and achieving net-zero status, which could be affected by policy changes
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It's worth noting that despite this opposition from oil companies, Trump's campaign has confirmed his intention to withdraw from the Paris Agreement if re-elected
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. This situation highlights the complex dynamics between the incoming administration's plans and the evolving stance of the oil industry on climate issues.

What are the potential economic impacts for oil companies if the U.S. withdraws from the Paris Agreement
The potential economic impacts for oil companies if the U.S. withdraws from the Paris Agreement are complex and multifaceted:

Short-Term Benefits

In the short term, withdrawing from the Paris Agreement could provide some benefits to oil companies:
  • It may lead to looser regulations on fossil fuel production and use, potentially boosting domestic oil and gas production
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  • This could give a small and immediate lift to the oil industry, aligning with Trump's promises to "unleash U.S. energy dominance" and increase drilling
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Long-Term Risks

However, in the longer term, withdrawal poses several risks:
  • Loss of influence: Exiting the agreement means losing a seat at the negotiating table for future climate talks, potentially impacting U.S. companies' ability to shape global energy policies
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  • Reduced competitiveness: It may hamper the U.S.'s ability to capitalize on the global shift to renewable resources and clean technologies. This could put American companies at a disadvantage in emerging clean energy markets
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  • Policy uncertainty: The constant back-and-forth on climate policy creates inefficiency and uncertainty for businesses, including oil companies. ExxonMobil CEO Darren Woods emphasized that these "stops and starts" are not beneficial for long-term business planning
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  • Stranded assets: Companies with long-term investment horizons, like oil companies, may end up with stranded assets if global climate policies continue to shift away from fossil fuels
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  • Missed opportunities: Withdrawing could cause the U.S. to miss out on significant investment opportunities in emerging clean energy industries. An International Finance Corporation analysis found the Paris Agreement has created a $23 trillion global investment opportunity in emerging industries like solar and wind
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Industry Response

Interestingly, some major oil companies have opposed withdrawal from the Paris Agreement:
  • ExxonMobil's CEO urged Trump not to pull out of the agreement again, emphasizing the need for policy stability
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  • The American Petroleum Institute has stated support for the Paris Agreement's ambitions
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  • This stance reflects a shift in the industry, with many oil companies now aligning more closely with climate goals and investing in emissions reduction projects
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In conclusion, while withdrawal might offer some short-term regulatory relief, it poses significant long-term risks for oil companies in terms of global competitiveness, policy uncertainty, and potential missed opportunities in the growing clean energy sector.

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WHITELIGHTNING AI RESEARCH//IMMEDREL//11/14/24/1615PST//
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