Citing a need to ensure “fair and equitable treatment of the transportation sector,” ConocoPhillips has decided against renewing its membership in the U.S. Climate Action Partnership (USCAP).
ConocoPhillips, one of the nation’s largest producers of natural gas and refiners of transportation fuels, said it wants to expand opportunities for near-term GHG reductions through increased use of natural gas.
“House climate legislation and Senate proposals to date have disadvantaged the transportation sector and its consumers, left domestic refineries unfairly penalized versus international competition, and ignored the critical role that natural gas can play in reducing GHG emissions,” said Jim Mulva, ConocoPhillips chairman and chief executive officer of the $149 billion firm.
Despite the decision to leave USCAP, Mulva said that ConocoPhillips’ involvement in the group had been positive.
“As an active member of USCAP, we owe a great deal of credit to our colleagues, both companies and non-government organizations alike,” Mulva said. “USCAP’s diverse membership and high-level commitment have made it a true pioneer in the climate change debate.”
In September, ConocoPhillips was among a 125-member group comprised of oil companies, retailers, trucking and transportation groups, and industry organizations that lobbied against a low-carbon fuel standard.
A report shows that a proposed U.S. cap-and-trade market would impact the financial health of large emitters, particularly in the fossil fuel sector.
“Carbon Exposure: Winners and Losers in a U.S. Carbon Market,” evaluated the impact of a $15-per-ton carbon-dioxide trading market on the nation’s largest oil and power companies, which together account for about 40 percent of the emissions in the U.S.
The cost of carbon in the oil sector for the five largest oil companies — ExxonMobil, Chevron, ConocoPhillips, BP and Royal Dutch Shell — would range from $247 million to $355 million.