A newsletter focused on the upcoming U.S. presidential election, highlighting important stories relating to finance and politics in the race for the White House, is being promoted as available for free. TotalEnergies’ CEO, Patrick Pouyanné, has cautioned Donald Trump not to dismantle climate regulations if he wins the presidency, suggesting that a lax approach to fossil fuel regulation could lead to backlash against the oil industry.
Speaking to the Financial Times, Pouyanné warned that removing regulations related to methane and other emissions could damage the sector’s reputation and increase opposition. He expressed a preference for strict regulations from the Environmental Protection Agency (EPA) on issues such as methane emissions, opposing an unregulated approach which he termed the “Wild West.”
Pouyanné’s statements reflect concerns within the oil industry about the potential implications of a Trump victory against Kamala Harris in the upcoming U.S. presidential election. Trump has promised to overturn many of Joe Biden’s regulations and exit the 2015 Paris Agreement, claiming these actions would stimulate American energy, already at high production levels.
While the oil industry has supported Trump due to opposition to environmental regulations, many executives have privately voiced concerns over his policies, including plans for tariffs on imports and altering Biden’s Inflation Reduction Act—a major climate policy.
Even if elected, Trump’s ability to implement significant deregulation could be constrained by Congress and the courts. Some industry leaders, like Chevron’s CEO Mike Wirth, express skepticism about a dramatic shift to deregulation, suggesting regulation tends to persist over time.
Trump has criticized the Inflation Reduction Act, intending to annul unutilized funds associated with it. However, companies like Chevron, ExxonMobil, and Occidental Petroleum are benefiting from the legislation’s substantial green tax incentives and subsidies, funding advancements in hydrogen and carbon capture technologies.
Executives hope Republican support in Congress, given that many IRA funds benefit projects in Republican districts, might moderate Trump’s intent to eliminate the law. Exxon’s CFO, Kathy Mikells, highlighted that these investments contribute to nationwide economic and job growth, incentivizing continued support for the IRA.
Biden’s regulatory directives, including stricter methane emission controls, might be easier for a Trump administration to reverse. While larger energy companies invest in technologies to reduce emissions and support global reduction goals, smaller operators often resist new regulations, citing financial constraints, and favor deregulation.
Pouyanné warned that repealing these regulations could invite criticism from climate advocacy groups, damaging the industry’s reputation. He urged the oil sector to meet climate challenges by acknowledging and adhering to environmental standards. In 2021, TotalEnergies left the American Petroleum Institute, citing misalignment with the industry lobby’s climate stance, advocating instead for reduced emissions and advanced technology adoption within the sector.
