Oil lobbyists back federal carbon price in reversal

WASHINGTON — The oil and gas industry’s top lobbying group on Thursday endorsed a federal price on carbon dioxide emissions, a reversal of longstanding policy.

The American Petroleum Institute, 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 monthslong review of the government’s oil and gas sales.

API also called for fast-tracking commercial deployment of long-sought technology to capture and store carbon emissions and for federal regulation of methane emissions from new and existing oil and gas wells, after resisting such regulations 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.

The reversal comes as President Joe Biden has moved in his first days in office to suspend oil and gas lease sales from federal lands and waters. Biden also canceled the Keystone XL oil sands pipeline from Canada.

Interior Secretary Deb Haaland on Thursday kicked off a review of the government’s oil and gas program that could lead to a longterm ban on leases or other steps to discourage drilling and reduce emissions.

Industry representatives and Republican lawmakers have criticized the leasing suspension and warn that widespread job losses are likely in energy-producing states should it become permanent.