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The state of California is suing five oil and gas supermajors — which have headquarters or major offices in Houston — for the cost of damages related to the health and environmental impacts of climate change, but the industry says these decisions should stay out of the courtroom.
The defendants are Spring-based Exxon Mobil Corp. (NYSE: XOM), California-based Chevron Corp. (NYSE: CVX), Houston-based ConocoPhillips (NYSE: COP), London-based Shell PLC (NYSE: SHEL), London-based BP PLC (NYSE: BP) and the Washington, D.C.-based American Petroleum Institute.
The lawsuit, announced by California Gov. Gavin Newsom and Attorney General Rob Bonta on Sept. 16, claims the oil industry has known for decades that the consumption of oil damages the environment. It alleges the oil industry has spent billions of dollars to spread disinformation about climate change while California has paid billions to address damages from the climate.
“For more than 50 years, Big Oil has been lying to us — covering up the fact that they’ve long known how dangerous the fossil fuels they produce are for our planet,” Gov. Newsom said. “It has been decades of damage and deception. Wildfires wiping out entire communities, toxic smoke clogging our air, deadly heat waves, record-breaking droughts parching our wells. California taxpayers shouldn’t have to foot the bill. California is taking action to hold big polluters accountable.”
Gov. Newsom demands the defendants pay their share of the recovery efforts from climate change-induced superstorms and wildfires; the protection of people from the health impacts of extreme heat; the management of dwindling water supplies in extreme drought; and the fortification of infrastructure and homes against sea-level rise and coastal and inland flooding.
The lawsuit also asks the courts to order the defendants to stop engaging in further pollution and pay penalties for alleged disinformation campaigns.
The industry’s response to the lawsuit overwhelmingly agrees that Congress and the oil and gas industry should debate and decide policy, and that expensive litigation has no place deciding energy policy.
Several of the defendants provided statements to the Houston Business Journal regarding the lawsuit.
A spokesperson for Chevron said: “Climate change is a global problem that requires a coordinated international policy response, not piecemeal litigation for the benefit of lawyers and politicians. California has long been a leading promoter of oil and gas development. Its local courts have no constructive or constitutionally permissible role in crafting global energy policy.”
Ryan Meyers, senior vice president and general counsel at the American Petroleum Institute, stated: "The record of the past two decades demonstrates that the industry has achieved its goal of providing affordable, reliable American energy to U.S. consumers while substantially reducing emissions and our environmental footprint. This ongoing, coordinated campaign to wage meritless, politicized lawsuits against a foundational American industry and its workers is nothing more than a distraction from important national conversations and an enormous waste of California taxpayer resources. Climate policy is for Congress to debate and decide, not the court system.”
A Shell spokesperson said: “The Shell Group’s position on climate change has been a matter of public record for decades. We agree that action is needed now on climate change, and we fully support the need for society to transition to a lower-carbon future. As we supply vital energy the world needs today, we continue to reduce our emissions and help customers reduce theirs. Addressing climate change requires a collaborative, society-wide approach. We do not believe the courtroom is the right venue to address climate change, but that smart policy from government and action from all sectors is the appropriate way to reach solutions and drive progress.”
Spokespersons for BP and ConocoPhillips said the companies do not typically comment on pending litigation. Exxon did not immediately respond.