Exxon, Chevron Begin Pushing Back Against Warren’s Fracking Ban
https://www.bloomberg.com/news/articles/2019-11-01/exxon-chevron-begin-pushing-back-against-warren-s-fracking-ban...Exxon Mobil Corp. and Chevron Corp. executives spoke out publicly against the proposals for the first time on Friday, saying they would shift profits from crude production from the U.S. to other countries, and may increase prices for consumers while doing nothing to reduce oil demand or greenhouse-gas emissions.
It’s a line of attack that’s likely to feature heavily in debates in the year ahead as the energy industry and Republicans seek to counter the Democratic Party’s green wing. To be sure, whoever gets elected next year will find it difficult to end fracking. Presidential powers to enact a ban only extend to federal lands, something that would be certain to face immediate legal challenges. A wider restriction would need to go through Congress.
“Any efforts to ban fracking or restrict supply will not remove demand for the resource,†Neil Hansen, Exxon’s vice president of investor relations, said on a conference call with analysts. “If anything it will shift the economic benefit away from the U.S. to another country, and a potentially impact the price of that commodity here and globally.â€
Elizabeth Warren and Bernie Sanders, two front-runners in the race to be the Democratic candidate, are keen to stop America’s reliance on fossil fuels, and they also want to end what they say is Washington’s subservience to corporate interests. They also know how to hit Exxon and Chevron where it hurts. Five years ago, both companies produced little crude from fracking and might have even have benefited from a ban if it led to higher oil prices. But now fracking is the fastest-growing part of their global businesses and a key profit driver....
