US oil sector sues Vermont over new climate law

Market: Coal, Crude oil, Emissions, Natural gas, Oil products
02/01/25

Oil industry and business groups are challenging a first-of-its-kind law in Vermont that would require fossil fuel producers to pay potentially billions of dollars in fines based on greenhouse gas emissions over the past 30 years.

Vermont's law is "unprecedented" and attempts to "pin blame" on a narrow set of out-of-state energy producers for climate-related damages for decades of alleged greenhouse gas emissions, the American Petroleum Institute and the US Chamber of Commerce wrote in a lawsuit filed on 30 December. They argue the law is preempted by the federal Clean Air Act and violates the US Constitution's ban on excessive fines.

"It punishes covered energy producers for greenhouse gas emissions related to the lawful production and use of their products and those emissions' purported impacts on climate change," the lawsuit said.

Vermont's "Climate Superfund Act" was enacted last year and applies to oil, natural gas and coal producers and refineries found to have emitted at least 1bn metric tonnes (t) of greenhouse gases from 1995-2024. Under the law, Vermont will issue a "cost recovery demand" to those companies based on their emissions that will pay for climate adaptation projects. Vermont will have until 1 January 2027 to finalize specifics of how the program will work, including how to calculate the charge.

The lawsuit, filed in a federal district court in Vermont, argues the state had exceeded its authority by trying to impose financial penalties on fossil fuel companies located "well beyond" its borders. The law also imposes an "overly harsh and oppressive retroactive penalty" and is based on an "arbitrary" calculation that focuses on the last 30 years of emissions, the lawsuit argues.

Vermont governor Phil Scott (R), who allowed the law to take effect last summer without his signature, has raised concerns about the state's "go-it-alone" approach toward taking on "Big Oil". But New York governor Kathy Hochul (D) last week signed the state's own climate "Superfund" law, which is expected to raise $75bn over the next 25 years from fees on companies that exceed 1bn t of greenhouse gas emissions from 2000-2018. Massachusetts and Maryland are considering similar laws.

By Chris Knight

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07/01/25

Trump wants policy of 'no windmills' being built

Washington, 7 January (Argus) — President-elect Donald Trump wants to pursue a policy to stop the construction of wind turbines, a move that could limit the growth of a resource projected to soon overtake coal and nuclear as the largest source of power in the the US. Trump has spent years attacking the development of wind, which accounted for 10pc of electricity production in the US in 2023, often by citing misleading complaints about its cost, harm to wildlife and health threats. In a press conference today, Trump reiterated some of those concerns and said he wants the government to halt new development. "It's the most expensive energy there is. It's many, many times more expensive than clean natural gas," Trump said. "So we're going to try and have a policy where no windmills are being built." The US is on track to add more than 90GW of wind capacity by 2028, a nearly 60pc increase compared to 2024, the US Energy Information Administration (EIA) said in latest Annual Energy Outlook report. If that growth materializes, wind will become the second largest source of electricity in the US at the end of of Trump's term, overtaking coal and nuclear in 2027 and 2028, respectively, according to the EIA forecast. Trump did not offer specifics on the policy, which he did not run on during his campaign. But the vast majority of wind capacity in the US is built on private land such as farms — largely in rural districts represented by Republicans — limiting the federal government's role. Trump could still threaten wind development by blocking projects on federal land, such as offshore wind projects, and working to repeal federal tax credits that subsidize wind. Democratic lawmakers said blocking wind development will raise costs for consumers and reduce energy production. "Trump is against wind energy because he doesn't understand our country's energy needs and dislikes the sight of turbines near his private country clubs," said US Senate Finance Committee ranking member Ron Wyden (D-Oregon), who helped expand federal tax credits for wind through the 2022 Inflation Reduction Act. Wind energy industry officials also raised concerns with the policy, which they said conflicted with an all-of-the-above energy strategy. "American presidents shouldn't be taking American resources away from the American people," American Clean Power chief executive Jason Grumet said. 'Gulf of America' Trump today separately reiterated his vow to "immediately" reverse Biden's withdrawal of more than 625mn acres of waters for offshore drilling, and also said he would rename the Gulf of Mexico as the "Gulf of America", which he said was a "beautiful name". In addition to expanding oil and gas production offshore, Trump said he will seek to drill in "a lot of other locations" as a way to lower prices. "The energy costs are going to come way down," Trump said. "They'll be brought down to a very low level, and that's going to bring everything else down." US consumers paid an average of $3.02/USG for regular grade gasoline in December, the lowest monthly price in more than three years. Henry Hub spot natural gas prices dropped to $2.19/mmBtu in 2024, the lowest price in four years. During his campaign, Trump said he would cut the price of energy in half within 12 months of taking office. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Libyan oil exports resilient in 2024

07/01/25

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07/01/25

Libyan oil exports resilient in 2024

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Viewpoint: Australia edges towards LNG imports in 2025

07/01/25

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07/01/25

Viewpoint: Australia edges towards LNG imports in 2025

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Caracas clamps down before disputed inauguration

06/01/25

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06/01/25

Caracas clamps down before disputed inauguration

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Newsom eyes budget response to Trump

06/01/25

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06/01/25

Newsom eyes budget response to Trump

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