Total SA is withdrawing from the American Petroleum Institute (API), the French energy giant said Jan. 15 citing a divergence over climate policies as well as political differences.

Total’s departure will mark the first major energy company to quit API, which is the largest U.S. oil and gas lobby and the primary trade group for the industry.

During his annual State of the American Energy address on Jan. 13, API President Mike Sommers touched on the group’s role in combatting climate change and expressed his willingness to work with the incoming Biden administration on areas like methane regulation. However, in its Jan. 15 release, Total said API’s climate positions were still only “partially aligned” with Total’s.

RELATED:

API Chief Seeks Areas to Work with Biden Administration

The points of difference include API’s support for the rollback of U.S. regulation on emissions of methane. Additionally, Total said, “API gave its support during the recent elections to candidates who argued against the United States’ participation in the Paris Agreement.” 

“As part of our climate ambition made public in May 2020,” Total Chairman and CEO Patrick Pouyanné said in a statement on Jan. 15, “we are committed to ensuring, in a transparent manner, that the industry associations of which we are a member adopt positions and messages that are aligned with those of the group in the fight against climate change.”

Total is aiming to achieve net-zero emissions across its worldwide operations by 2050 or sooner. As part of the strategy, the company is working to reduce its dependence on oil and shift towards electricity and renewable energy.

Last year, Total and other European energy majors BP Plc and Royal Dutch Shell Plc withdrew from the American Fuel & Petrochemical Manufacturers, a leading U.S. oil refining group, also over differences regarding climate policies. Still, at the time, the three groups said they had elected to remain in API.

In a statement posted to the group’s Twitter, API thanked Total for its membership adding: “We believe that the world’s energy and environmental challenges are large enough that many different approaches are necessary to solve them and we benefit from a diversity of views.”

“As a member-driven org, we don’t support subsidizing energy because it distorts the market and ultimately proves harmful to consumers,” the group continued. “Our focus continues to be on taking meaningful action and shaping policy to reduce emissions and ensure access to affordable, reliable energy.”

Reuters contributed to this article.

Comments