New York was one of over two dozen cities and states who have been suing Exxon and others, claiming the oil and gas companies knew that climate change was occurring back in the 1970’s and did nothing about it. In New York’s case, “was” is the operative word, as a New York judge recently dismissed the suit. Maybe knowing it was coming, the New York Governor went another route by passing a law intended to “fine” oil and gas companies $75 billion over the next 25 years for the damages caused by climate change. There are several reasons why New York’s law and the dozens of remaining lawsuits have no basis and should be immediately thrown out.
First, how, exactly, do you determine how much those cities and states are being damaged? Because of the media’s hyperfocus on sensationalizing the topic, now every storm, flood, fire, or drought are blamed on climate change. Obviously, that is false, as such events have been occurring since the beginning of time. Further, none of the plaintiffs acknowledge the benefits of fossil fuels – the underappreciated workhorse that brought us out of the dark ages. The fires in Las Angeles are a catastrophe, with billions in homes and infrastructure being destroyed. But to the extent that carbon energy is to blame for the fires, you must acknowledge the absolute fact that the infrastructure would not have been there to start with without carbon energy. Further, carbon energy, which underpins our entire life as we know it, has not ruined the environment but has helped preserve it. The nastiest living conditions with the lowest life expectancy on the planet are where people have little, if any, access to energy.
Second, since New York and most of the other plaintiffs produce virtually no oil or gas, exactly which companies are to blame for their emissions? New York’s emissions did not occur because Exxon produces oil and gas in Texas or elsewhere, those emissions came because their citizens continue to consume the fuels that are crucial to running their lives. To further illustrate, New York banned fracking in 2015, even though they sit over the prolific gas reserves of the Marcellus Shale. But they continue to consume approximately 1.7 TCF of natural gas per year, the same as before the ban. Instead of producing their own gas, they continue to import the fuel from neighboring Pennsylvania, to whom they have exported the economic benefit of the capital, royalty, and taxes. What they did not export were the emissions associated with their consumption, which will not go away until there is a viable alternative.
Which brings us to the most crucial point… there is not yet a viable alternative. Had Exxon acknowledged in the 1970s that CO2 emissions were an issue, what exactly was Exxon and the rest of the world supposed to do about it? Al Gore raised the alarm in 1993, and starting shortly thereafter, the world has been in a hysterical panic to “transition” away from fossil fuels. Over the last 30 years, the US has spent billions and the world has spent trillions on the energy transition, yet in 2023, 82.5% of US energy and 84% of the world’s energy still came from fossil fuels. (2) New York is a perfect example. In 2007, 69.6% of their energy came from oil and natural gas. However, because of reductions in coal and nuclear energy production, in 2021, a total of 72.5% of New York’s energy came from oil and natural gas. (3) And somehow the oil and gas industry is to blame for their emissions? It is clear that had the supposed “energy transition” started in the 1970’s vs the 1990’s, it would have made absolutely no difference. No matter how much money you pour into them, wind, solar, and batteries just do not replicate the convenient, abundant, affordable, and always reliable energy from oil and natural gas.
In closing, New York’s law and these lawsuits are disingenuous efforts to place blame on energy producers versus energy consumers for the impacts of fossil fuels. Ironically, none of those cities or states are clamoring for more nuclear energy, which is the only real answer to a carbon free future. If New York truly believes it is being irreparably damaged by oil and natural gas, the state is welcome to quit using them whenever it wishes.