Big Oil doesn’t want Trump to scrap Biden’s climate law entirely – report

Big Oil dos not want Donald Trump and his allies to slash provisions of President Biden’s Inflation Reduction Act that benefit the industry, the Wall Street Journal reported, citing people familiar with the matter.

Oil giants including Exxon Mobil (NYSE:XOM), Phillips 66 (NYSE:PSX) and Occidental Petroleum (NYSE:OXY) have lauded some benefits of the law, including incentives for costly low-carbon energy projects that the companies have poured money into.

While the oil industry is largely pro-Trump (recall his “drill, baby, drill” pledge), some executives are worried that if he’s re-elected, his administration would scrap the IRA.

Occidental (OXY) CEO Vicki Hollub told Trump during a fundraiser in May that tax credits for the company’s huge investments in carbon-capture technology should be preserved. Occidental is building a $1.3B direct-air capture plant in West Texas, and plans to construct more.

Exxon (XOM) also told the Trump campaign that portions of the IRA must be preserved, while Phillips 66 (PSX) officials told Trump’s allies in Congress that the law’s tax credits are important for its business.

But the oil industry still largely opposes tax credits for renewable energy and electric vehicle purchases.

Trump has promised to end the Biden administration’s climate agenda, calling it a “green new scam,” and said he would redirect IRA funds towards infrastructure projects if elected. Republicans in Congress have repeatedly pushed for scrapping or scaling back the IRA.

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