How the oil industry has sustained market dominance through policy influence
The report details how the oil and gas industry has systematically opposed renewable energy and electric vehicles through a long-standing narrative playbook. This opposition has hindered the global energy transition, contributing significantly to continued high emissions and delaying critical climate action.
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OVERVIEW
Introduction
The report investigates how the oil and gas industry has maintained its dominance by systematically opposing renewable energy and electric vehicles (EVs) through a strategic narrative playbook. Despite decades of mounting scientific evidence on climate change, major industry associations, including the American Petroleum Institute (API), FuelsEurope, and Fuels Industry UK, have used this playbook to hinder the global transition to cleaner energy.
Methodology
The analysis draws from a dataset of over 50 instances of fossil fuel advocacy against green alternatives, spanning from 1967 to 2023. The study uses narrative analysis, member analysis, and emissions data to assess how these associations’ arguments conflict with science-aligned climate policy. The emissions data, derived from the Carbon Majors Database, also quantifies the environmental impact of these advocacy efforts.
The playbook for opposing fossil fuel alternatives
The report identifies three core narratives used by the industry:
- Solution scepticism: This narrative undermines the viability and impact of renewable energy and EVs. It has been used consistently for over 50 years, with 63% of the evidence pieces featuring this tactic. For example, in 1967, the API argued against EVs, claiming they would offer no meaningful advantage over internal combustion engines.
- Policy neutrality: This narrative advocates for minimal government intervention and opposes policies favouring alternatives to fossil fuels. It appeared in 67% of the evidence, with FuelsEurope leading its use in Europe, where they argue for a technology-neutral approach, allowing continued fossil fuel use alongside renewables.
- Affordability and energy security: This narrative stresses that the transition to renewables and EVs could jeopardise economic stability and energy security. It appears in 66% of the evidence, with API using it in 82% of its communications.
The impact of the fossil fuel playbook
The fossil fuel playbook has significantly delayed the energy transition. In the US, fossil fuel consumption has increased by 43% since 1967, while renewables only make up 12% of the energy mix. EVs represent just 1.3% of total registered vehicles. The report highlights that, between 1950 and 2022, API members’ greenhouse gas emissions totalled 320 billion tonnes of CO2, representing 18% of global cumulative emissions from fossil fuels.
How industry associations represent their members on climate
The report shows a misalignment between the public climate positions of major oil companies and their industry associations, particularly API. While some companies, such as Shell and BP, have supported EVs and renewables, they remain aligned with API on fossil fuel exploration and development. This dual advocacy approach underlines the ongoing influence of the fossil fuel playbook.
Recommendations
The report calls for increased transparency and accountability in the lobbying practices of industry associations. It recommends that policymakers critically assess the narratives used by these groups and focus on advancing science-aligned climate policies. Enhanced scrutiny of the financial contributions from member companies to these associations is also advised to ensure alignment with their public climate commitments.
