WASHINGTON, D.C. – With a pro-fossil-fuel president now in the White House, the oil and gas industry is seizing the opportunity to push back against state-led climate lawsuits that could cost companies billions. During a closed-door meeting at the White House on Wednesday, executives from Exxon Mobil, Chevron, ConocoPhillips, Hess, and other industry giants pressed the administration to intervene in ongoing legal battles and shield the sector from mounting legal threats.
Oil Giants Seek Legal Relief
At the meeting, oil-and-gas executives urged the president to consider Justice Department intervention in state-level lawsuits, arguing that the legal challenges threaten to undermine the administration’s energy agenda. According to sources familiar with the talks, the president appeared receptive to the industry’s concerns, signaling that his administration would explore ways to support oil companies in their fight against state regulations.
The industry’s lobbying effort comes in response to dozens of lawsuits filed by state and local governments against Exxon Mobil, Shell, Chevron, BP, and other major producers. These suits seek damages for the environmental costs of greenhouse gas emissions. Additionally, states like New York, Vermont, and California have passed climate superfund laws that allow governments to levy billions of dollars in fines on fossil-fuel companies to fund climate adaptation projects.
Mounting Legal Threats
The New York superfund law, passed in 2024, imposes $3 billion in annual fines on oil companies for the next 25 years. According to estimates, major producers—including Exxon, Shell, BP, Chevron, Peabody Energy, and Petróleos Mexicanos—could each face $150 million or more in yearly payments.
California is pursuing a similar path. State lawmakers recently introduced a bill targeting oil companies for damages from the Los Angeles wildfires, arguing that fossil-fuel emissions intensified the disaster.
The industry, however, claims that the state-level lawsuits and superfund laws overstep legal boundaries. Justin Prendergast, a spokesman for the American Petroleum Institute, said:
“We will continue to make that case in the courts, and we are exploring all options to correct this overreach by certain states.”
Federal Support Sought for Legal Protections
Oil companies are now pressuring Congress and the Justice Department to provide legal immunity against these lawsuits. Industry lobbyists are advocating for federal lawsuits challenging the superfund laws, arguing that states are infringing on federal authority over climate policy.
The oil sector is also seeking congressional protections similar to the 2005 law shielding gun manufacturers from lawsuits. However, with narrow Republican majorities in Congress, achieving such protections may prove difficult.
Industry Fears Tobacco-Style Fallout
The industry’s aggressive legal push reflects growing fears that it could face tobacco-style legal consequences, with multibillion-dollar settlements and strict regulations. The tobacco industry’s massive legal losses in the late 1990s are a cautionary tale for fossil-fuel companies, which worry that climate litigation could follow a similar pattern of financial devastation.
A Complicated Legal Landscape
The Supreme Court’s 2023 decision declining to shield oil companies from state-level climate lawsuits has further complicated the industry’s legal outlook. With state courts now hearing cases that oil companies view as less favorable than federal environmental statutes, the companies face an increasingly challenging legal environment.
In 2024, California’s Attorney General Rob Bonta filed an unprecedented lawsuit accusing Exxon Mobil of misleading consumers about the recyclability of plastic products. Exxon countered by filing a defamation lawsuit against the state and environmental groups, claiming that false statements had caused it to lose potential business deals.
What’s Next?
As state-led climate actions continue to gain traction, the fossil-fuel industry is hoping that the Trump administration will intervene. However, with Democratic governors in key states pushing for climate accountability and a divided Congress, the industry’s legal protections remain uncertain.
For now, oil companies are bracing for a wave of legal challenges, while simultaneously lobbying for federal intervention to secure their future in an increasingly climate-conscious world.
