Are U.S. Oil Companies About to Embrace Carbon Taxes?
This week, we talk about how some U.S. oil companies appear to be warming up to carbon pricing and the risks cryptocurrency investors face.
Welcome to our weekly chat about the environmental and social issues that influence the way we work, spend our money and live our lives. We're your hosts, Maitane Sardon and Dieter Holger. Want to get our newsletter every Wednesday? Hit the subscribe button in the upper right corner and please share with your friends!
Hi, Maitane. It looks like some U.S. oil companies are shifting their stance on climate change. The American Petroleum Institute, one of Washington’s most powerful oil lobbying groups, is poised to endorse carbon pricing to cut carbon-dioxide emissions.
Generally, carbon pricing works by using taxes or tradable credits to place a cost on each ton of carbon dioxide emitted. A draft document obtained by The Wall Street Journal shows that the API, which counts Exxon Mobil, Chevron and more than 600 other companies among its members, plans to endorse some form of carbon pricing, but doesn’t lay out specifics for taxes or credits.
Carbon pricing continues to receive a mixed response from oil companies, with some API members still voicing “heated” opposition, a person familiar with the discussions told the Journal. Just more than a decade ago, the API was a fierce opponent of the policy. French oil giant Total exited the API in January due to disagreements on climate change, including carbon pricing.
What is clear is that oil companies are adjusting to the new reality in Washington after the election of President Biden, who has called for the U.S. to reach net-zero emissions by 2050.
Let’s move to another area the government is zeroing in on: cryptocurrencies like bitcoin. This week, New York’s Attorney General Leticia James warned would-be buyers to watch out for scams.
Her warning follows bitcoin’s meteoric rise past $50,000 this year. Big investors and companies have helped fuel its growth. Software maker MicroStrategy bought $425 million worth of the currency, not to mention Tesla’s $1.5 billion purchase.
What am I looking at? The chart above shows the price in U.S. dollars of one bitcoin, the most well-known cryptocurrency, over the past six months.
The New York attorney general settled an investigation into companies operating the Bitfinex cryptocurrency exchange for $18.5 million after she claimed it “unlawfully covered up” financial losses. General counsel for Bitfinex, operated by iFinex, and Tether said the companies were pleased to have reached a settlement and put the matter behind
It’s a word of caution that everything isn’t rosy when it comes to Bitcoin and investors should stay on their toes.
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Meet the team:
Elevate the Conversation is produced by the editorial teams of The Wall Street Journal and Dow Jones Newswires. Here's a little bit more about us, along with our contact information. We'd love to hear from you.
Dieter Holger, Reporter: I have a knack for uncovering values-based investing trends and I’m obsessed with spreadsheets and charts. I really enjoy ‘80s music and skateboarding (but I suck). dieter.holger@wsj.com @dieterholger
Maitane Sardon, Reporter: I have a passion for amplifying the voices of those at the center of stories. I love running on Barcelona’s beaches and binging on chocolate ice-cream to compensate (it’s all about balance). maitane.sardon@wsj.com @sardonmaitane
Catherine Lindsay, Editor: I like breaking down complex ideas and explaining them. On the weekend, you’ll find me wandering the city with my film camera at the ready. catherine.lindsay@wsj.com @CathsLindsay
Tammy Lian, Designer: As a visual producer, I'm always excited by the challenge of creative problem solving. In my spare time, you can usually find me taking care of my ever-growing collection of plants and drinking tea. tammy.lian@wsj.com @violian.tammy