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Total Quits American Petroleum Institute

19.01.2021 - Total has announced it is leaving the American Petroleum Institute (API) in disagreement over the industry grouping’s climate positions. The French energy and chemicals group said it was unable to resolve differences with API over carbon pricing, subsidies for electric vehicles and the regulation of methane emissions.

Paris-based Total said it was also unhappy about US plans to pull out of the Paris climate agreement and in particular API’s support for American political candidates who argued against being a part of it. Moreover, it noted, the institute continues to support outgoing president Donald Trump’s plans to roll back methane emissions.

“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,” said Total’s CEO Patrick Pouyanné.

Other European oil and petrochemical majors in the recent past have quit American or American-led trade groups. Total as well as BP and Shell have  severed ties with the American Fuel and Petrochemical Manufacturer organization.

BP has also exited the Western States Petroleum Association and the Western Energy Alliance but has stayed in the US lobby API even as it refocus on clean energy.

In September 2020, the London-headquartered group announced plans for a 40% reduction in oil-and-gas production over the coming decade, greater investment in low-carbon energy and a ramp-up in wind and solar power. At the beginning of 2021, it sold two major petrochemicals businesses, acetyls and aromatics, to Ineos.

Despite its opposition to the US industry’s climate stance, Total remains heavily invested in the country’s oil and gas sector, spending millions of dollars on liquefied natural gas projects. At the same time, it is moving closer to becoming the largest LNG exporter in the US.

As well as a refinery in Port Arthur, Texas, the French group holds minority stakes in three Gulf of Mexico shale gas fields, as well as onshore fields in the US states of Texas and Ohio.

On the other side of the equation, Total is also investing considerable sums in solar energy. This week it announced it would pay $2.5 billion for a 20% stake in the world’s largest solar developer, Adani Green Energy, one of India’s largest infrastructure conglomerates.

The French group has said it plans to spend $3 billion a year on renewables by 2030, around 20% of its annual investment budget. Total and Adani have previously made other joint investments, including in liquefied natural gas to help meet targets for generating more power from low-carbon sources.

Author: Dede Williams, Freelance Journalist