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American Petroleum Institute Reverses Stance to Now Support Carbon Pricing

Stephen Ellis Sector Strategist

Analyst Note

| Stephen Ellis |

The American Petroleum Institute, or API, which is considered to the be one of the most influential lobbying groups for the U.S. oil and gas industry, is now supportive of a carbon pricing policy. This shift marks a reversal from its earlier rejection of carbon pricing during former President Barack Obama's administration (notably the American Clean Energy and Security Act of 2009). While the API is not endorsing a specific carbon price or specific implementation approach (cap and trade versus tax and so on), it is supportive of a broader set of market-based principles on the idea. On a similar note, the API is specifically supporting methane emissions regulation, as well as industrywide standards for collecting and reporting key environmental, social, and governance-related data points. Finally, the group is supporting further action by President Joe Biden's administration to fund carbon capture technology and expand tax credits.

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Company Profile

Business Description

Hess is an independent oil and gas producer with key assets in the Bakken Shale, Guyana, the Gulf of Mexico, and Southeast Asia. At the end of 2020, the company reported net proved reserves of 1.2 billion barrels of oil equivalent. Net production averaged 323 thousand barrels of oil equivalent per day in 2020, at a ratio of 70% oil and natural gas liquids and 30% natural gas.

Contact
1185 Avenue of the Americas
New York, NY, 10036
T +1 212 997-8500
Sector Energy
Industry Oil & Gas E&P
Most Recent Earnings Dec 31, 2020
Fiscal Year End Dec 31, 2021
Stock Type Distressed
Employees 1,621

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