Understanding the Oil Industry’s Perspective on Climate Change

The oil industry, often criticized for its stance on climate change, is a complex entity comprised of numerous companies and individuals. Each can have its own views on environmental issues, but as a whole, the industry has a clear focus on continuing to provide essential services while navigating the challenges of transitioning to more sustainable energy sources.

Addressing the Industry’s Heterogeneity

It is vital to recognize that the oil industry does not uniformly hold a single stance on climate change. This diversity is due to the industry’s extensive composition. If you look at the Yellow Pages back when phone books were available, you would find several pages filled with short listings for oil companies. My location, being an oil-producing region, further highlights this diversity among stakeholders within the industry.

Geologists and Climate Change Experts

Those within the oil and gas industry, particularly the geologists, are often more knowledgeable about climate change than the average person. These experts are deeply familiar with the inevitability of change, both in geology and in the climate. They understand that no amount of regulation, taxation, or coercion can hold Earth's climate in a state of stasis. Climate change is an inherent part of Earth’s natural processes, and it is beyond human control to fully mitigate or halt it.

The Imperative to Provide Essential Energy

Businesses in the oil and gas sector, like any others, exist to develop, produce, distribute products and services to those who can or will consume them. The success of these businesses lies in their ability to generate revenue above what is needed to invest in improvements, expansion, and the welfare of the stakeholders, ranging from stockholders to employees.

Given the forced downturn and squeeze on profitability in the oil and gas sector, it is observed that companies are more focused on systematic dismantling rather than sustainable development. The primary goal is now to exit the industry while extracting more public ownership and investing any excess revenue into the destruction of their properties. This can be likened to the scenario where a government informs a homeowner that their house will be demolished in a few years, without compensation, effectively rendering the property worthless. In such circumstances, it is probable that the homeowner wouldn’t make regular or major improvements to the property.

Relevance and Irrelevance in the Face of Change

It is important to note that the industry’s stance on climate change is often perceived as irrelevant, not because of any lack of understanding of the subject, but because climate change is an unfurling reality that has always been there and will continue to be. No specific target or outcome can be definitively tied to the elimination of fossil fuels. The fossil fuel industry, while facing significant challenges, still plays a crucial role in providing energy to support the entire human species and other forms of life. Therefore, the industry’s focus is squarely on ensuring that current energy demands are met, even as the industry seeks sustainable alternatives.

While the industry acknowledges the importance of addressing climate change, the primary driver remains the provision of necessary energy services. The belief is that reducing fossil fuel dependency will lead to an enhanced climate is an unfounded assumption without a clear scientific consensus. The overarching goal is to balance the immediate need for energy with the long-term goal of environmental sustainability, recognizing that both are essential for the continued prosperity of our planet.