The U.S. Senate budget committee has launched a probe into 18 domestic oil producers accused of illegal coordination with OPEC and OPEC+ on oil production and pricing. Meanwhile, Exxon’s Imperial Oil removes CCS documents amidst Canada’s new greenwashing legislation.
The U.S. Senate budget committee has initiated an investigation into 18 domestic oil producers over potential illegal coordination with the Organization of the Petroleum Exporting Countries (OPEC) and the extended group OPEC+ on oil production, crude oil prices, and related matters. This probe, led by Senator Sheldon Whitehouse, aims to determine if there has been any collusion affecting the pricing and production of oil products.
In a related development, Exxon’s Canadian subsidiary, Imperial Oil, has removed several documents mentioning carbon capture and storage (CCS) technology from its website. This action follows the enactment of Canada’s Bill C-59, which aims to prevent greenwashing by requiring companies to provide credible evidence of their environmental claims, with penalties up to $10 million for false statements. The company has been studying CCS for over three decades but faced skepticism over its economic viability and impact in reducing CO2 emissions. Despite this, Imperial and its parent company, Exxon, have frequently promoted CCS as critical to achieving net-zero emissions and meeting Paris Agreement climate goals.
Imperial Oil’s removal of CCS-related documents and subsequent disclaimers come in response to the new legislation, while the company asserts its continued commitment to environmental performance. The Pathways Alliance, a coalition of major Canadian oil sands producers including Imperial, also scrubbed its website following Bill C-59’s implementation. This group has been advocating for significant government subsidies to support their CCS initiatives while increasing oil sands production to record levels.
Overall, these developments highlight ongoing scrutiny and regulatory pressures faced by oil producers concerning environmental claims and coordination with international oil organizations.
