Oil industry split on climate law protests

A rift has broken out within the US oil industry over a controversial plan to deploy thousands of workers in so-called “energy citizen” rallies protesting against imminent climate legislation.

The American Petroleum Institute, which represents the US oil industry, has written to member companies asking them to “move aggressively” to stage up to 22 gatherings.

It has strong support from key members such as Exxon, which has warned that the legislation could put businesses employing millions of workers “at a disadvantage” with global competitors.

But the plan threatens to expose splits in the API as some members belong to another group, the US Climate Action Partnership, which supports many of Barack Obama’s environmental policies.

Shell, which has been a key member of the UCAP, has argued that tackling climate change is “the pro-growth strategy.” Other companies which belong to UCAP include General Electric, Siemens, BP America and ConocoPhillips.

Yet all these companies simultaneously provide funding to the API.

“The truth is that the API is all over the place on this issue, there is nowhere near a unanimous view,” said one oil industry source. Some members saw imminent environmental laws as “the work of the devil” while others took a more progressive view, he said.

The secret memo was passed to environmental group Greenpeace despite the entreaties of author Jack Gerard, president of the API, to “treat this information as sensitive ... we don’t want critics to know our game plan.”

According to one source, the letter came from an API member who was “unhappy with the concept”.

Greenpeace criticised the stunt as a cynical “astroturf” campaign, arguing it would predominantly feature energy workers rather than “grassroots” citizens.

But the API said workers would not be hired to attend or bussed in: “I don’t know whether they’re required to go there,” said spokesman Bill Bush. ”I doubt that seriously.”

The action, which has support from 60 other industry groups – ranging from the American Trucking Associations to the National Association of Manufacturers – may invoke comparisons with recent protests against the Obama administration over healthcare.

The rallies are designed to protest against “unsound energy policy” such as tax increases on the industry and the Waxman-Markey bill, which will create a carbon trading scheme and force energy groups to produce some renewables. The API has told members it will provide the logistics for the rallies.

The memo says that a turnout of several hundred employees at each rally will be crucial: “In the 11 states with an industry core, our member company local leadership is essential to achieving the participation level that Senators cannot ignore.”

Mr Bush said he believed the memo was genuine. Asked whether the employees of API member companies attending the rally would identify themselves as part of an industry effort, he said: ”I don’t think anyone’s going to be carrying signs saying they’re from this organisation and that organisation.”

Greenpeace has written to the API to ask why it is fighting climate change regulation when several of its members have expressed public concerns about the issue.

Asked whether he was aware of dissent within the group, Mr Bush said: “I don’t that I can answer very well – we have 400 members or thereabouts, and we have an awful lot of issues that we talk about and work on. And every single thing we’ve done does not include every single member.”

Meanwhile Greenpeace also criticised the API’s repeated claim that Waxman-Markey will drive gasoline prices to $4.

The research on which this claim is based – by the Heritage Foundation – says this will not happen until 2035, a quarter of a century from now.

The API is planning rallies in cities including Houston, Detroit, Anchorage, Philadelphia and Nashville as well as many smaller conurbations. Greenpeace claimed that many of these featured congressmen in vulnerable seats.

Additional reporting: Sheila McNulty