American Petroleum Institute

Summary

The American Petroleum Institute (API) is the largest U.S. trade association for the oil and natural gas industry. It claims to represent nearly 600 corporations involved in production, refinement, distribution, and many other aspects of the petroleum industry. Much of its work has been dedicated to the advancement of climate change denial and blocking of climate legislation to defend the interests of its constituent organizations.[4][5]

American Petroleum Institute
American Petroleum Institute (2020).svg
Formation20 March 1919; 103 years ago (1919-03-20)[1]
13-0433430
Legal status501(c)(6)
HeadquartersWashington, D.C. (since 1969)[1]
Membership
Nearly 600 companies in petroleum industry
President and CEO
Mike Sommers[2]
Revenue (2019)
$238,520,840[3]
Websitehttps://www.api.org/

The association describes its mission as "to promote safety across the industry globally and influence public policy in support of a strong, viable U.S. oil and natural gas industry".[6] API's chief functions on behalf of the industry include advocacy, negotiation and lobbying with governmental, legal, and regulatory agencies; research into economic, toxicological, and environmental effects; establishment and certification of industry standards; and education outreach.[7] API both funds and conducts research related to many aspects of the petroleum industry.[7][8]

HistoryEdit

 
Previous logo

Although some oil was produced commercially before 1859 as a byproduct from salt brine wells, the American oil industry started on a major scale with the discovery of oil at the Drake Well in western Pennsylvania in 1859.

The American Petroleum Institute was founded on 20 March 1919 and based in New York City.[1]

In 1959, at a symposium organized by the American Petroleum Institute and the Columbia Graduate School of Business for the centennial of the American oil industry, the physicist Edward Teller warned then of the danger of global climate change.[9] Edward Teller explained that carbon dioxide "in the atmosphere causes a greenhouse effect" and that burning more fossil fuels could "melt the icecap and submerge New York".[9]

In 1969, the API decided to move its offices to Washington, DC.[1]

Standards and certificationEdit

API Standards Committees are made up of subcommittees and task groups that works and maintain these standards.[10][11]

API also defines the industry standard for the energy conservation of motor oil. API SN is the latest specification to which motor oils intended for spark-ignited engines should adhere since 2010. It supersedes API SM.[12]

API also defines and drafts standards for measurement for manufactured products.

Crude Oil Data Exchange (CODE) is the electronic business standard as of 1978.

API RP 500 and RP 505 classify the locations for electrical equipment in hazardous areas.[13][14]

API has entered petroleum industry nomenclature in a number of areas:

  • API gravity, a measure of the density of petroleum.
  • API number, a unique identifier applied to each petroleum exploration or production well drilled in the United States.
  • API unit, a standard measure of natural gamma radiation measured in a borehole.[15]
  • "Non-API", an item (e.g., tubular connector) not conforming to API standards
  • "Non-API", (informal) slang term for anything out of the norm.

Educator informationEdit

In addition to training industry workers and conducting seminars, workshops, and conferences on public policy, API develops and distributes materials and curricula for schoolchildren and educators. The association also maintains a website, Classroom Energy.[16]

Public relations and lobbyingEdit

API spent more than $3 million annually during the period 2005 to 2009 on lobbying; $3.6 million in 2009.[17] As of 2009, according to API’s quarterly “Lobbying Report” submitted to the U.S. Senate, the organization had 16 lobbyists lobbying Congress.[18] According to an investigation conducted by the International Business Times, API lobbied the Department of State for all of 2009 on "legislative efforts concerning oil sands" and "Canadian Oil Sands."[19]

The American Petroleum Institute also lobbied the State Department every quarter in 2009. In three of four quarters, the group listed “legislative efforts concerning oil sands” as one of the areas it was focusing on in its lobbying, and in the final quarter, it listed “Canadian Oil Sands.” Among API’s members are ExxonMobil, which has invested in Canadian oil sands.

API lobbies and organizes its member employees' attendance at public events to communicate the industry's position on issues. A leaked summer 2009 memo from then API President Jack Gerard asked its member companies to urge their employees to participate in planned protests (designed to appear independently organized) against the cap-and-trade legislation the House passed that same summer. "The objective of these rallies is to put a human face on the impacts of unsound energy policy and to aim a loud message at [20 different] states," including Florida, Georgia, and Pennsylvania. Gerard went on to assure recipients of the memo that API will cover all organizational costs and handling of logistics. In response to the memo, an API spokesman told media that participants will be there (at protests) because of their own concerns, and that API is just helping them assemble.[20]

To help fight climate control legislation that has been approved by the U.S. House, API supports the Energy Citizens group, which is holding public events.[21][22] API encouraged energy company employees to attend one of its first Energy Citizen events held in Houston in August 2009, but turned away Texas residents who were not employed by the energy industry. Fast Company reported that some attendees had no idea of the purpose of the event.[23][24] In December 2009, Mother Jones magazine said API and Energy Citizens were promulgating climate disinformation.[25]

In the second half of 2008, as the U.S. presidential election neared, API began airing a series of television ads where spokeswoman Brooke Alexander encourages people to visit their new website, EnergyTomorrow.org.[third-party source needed]

In January 2012, the American Petroleum Institute launched the voter education campaign - Vote 4 Energy. The campaign says that increased domestic energy production can create jobs, increase government revenue, and provide U.S. energy security. The Vote 4 Energy campaign does not promote any specific candidate or party, but rather provides voters with energy information to equip them to evaluate candidates on the federal and local levels and make decisions in favor of domestic energy on Election Day. The main components of the Vote 4 Energy campaign include the website - Vote4Energy.org - and social media communities, along with a series of advertisements and events around the country. The vote 4 energy campaign was criticized for presenting misleading arguments about the relationship between oil production and jobs whilst ignoring the potentially catastrophic consequences of increased fossil fuel consumption on the Earth's climate.[26]

The API successfully pushed for an end to a ban on American oil exports on the grounds that the ban increased demand for Russian and Iranian oil, thereby benefiting the unfriendly regimes in these countries. Critics noted that many of its member companies continued to maintain ongoing business in these countries whilst the lobbying campaign was in progress, leading to accusations of hypocrisy.[27] Furthermore, the API's campaigns have been criticized for advocating policies that are likely to exacerbate global warming and its associated problems.[28] The API has repeatedly funded conservative groups that deny the reality of anthropogenic global warming[29] in spite of the overwhelming scientific consensus that it presents a serious problem for the planet.[30]

It has many front groups, including the NH Energy Forum that in August 2011 hosted a New Hampshire event for Republican presidential candidate Rick Perry.[31][32]

In March 2022, the Climate Committee of the API reportedly approved a draft proposal urging Congress to pass a carbon tax on fossil fuels. The draft proposal is subject to further approval by the API Executive Committee. The proposal calls for gasoline wholesalers, power plants and others to pay a tax of $35 to $50 per ton of carbon dioxide generated by the fossil fuel they sell or use. The proposal drew criticism amid coincident high prices at the pump and elsewhere.[33] In June 2021, in a sting operation carried out by Unearthed, Keith McCoy, senior lobbyist for ExxonMobil, revealed that the company was 'for a carbon tax' because 'it gives us a talking point'. In reality, McCoy stated, a carbon tax 'is not gonna happen'.[34]

Willie SoonEdit

In February 2015, it was revealed that climate skeptic Willie Soon had been paid by several fossil fuel interest groups.[35] Over the course of 14 years, he had received a total of $1.25m from Exxon Mobil, Southern Company, the American Petroleum Institute (API) and a foundation run by the ultra-conservative Koch brothers, the documents obtained by Greenpeace show.[36] The scientist described his studies to fossil fuel executives as "deliverables", and permitted anonymous pre-publication reviews.[37] Soon advanced the widely discredited theory that changes in solar activity are to blame for climate change, and called into question the severity and extent of climate change in all his studies, never revealing his backers.[37]

Inventory reportsEdit

Every Tuesday (unless Monday is a holiday) at 4:30 PM the API releases a report on US inventories of crude oil, gasoline and distillates, to paid subscribers.[38] This information is soon relayed to the public by news sources. As this information predates the report on the same inventory levels by the Energy Information Administration (EIA), it gives investors an early look at the information that may be coming from the EIA, although there is frequently some disparity between the two sets of figures.

See alsoEdit

ReferencesEdit

  1. ^ a b c d "API history", American Petroleum Institute (page visited on 2 January 2018).
  2. ^ "Mike Sommers - President and Chief Executive Officer, American Petroleum Institute - Biography". Congressional Coalition on Adoption Institute. Retrieved October 18, 2018.
  3. ^ "American Petroleum Institute - Nonprofit Explorer". 9 May 2013.
  4. ^
    • "Minnesota sues Exxon, Koch and API for being 'deceptive' on climate change". Reuters. 2020-06-24. Retrieved 2021-10-17.
    • "Big oil and gas kept a dirty secret for decades. Now they may pay the price". the Guardian. 2021-06-30. Retrieved 2021-10-17.
    • Subramanian, Samanth. "Big oil's industry lobby is starting to lose its grip on big oil itself". Quartz. Retrieved 2021-10-17.
    • Meyer, Robinson (2020-02-20). "The Oil Industry Is Quietly Winning Local Climate Fights". The Atlantic. Retrieved 2021-10-14.
  5. ^
    • "ExxonMobil lobbyists filmed saying oil giant's support for carbon tax a PR ploy". the Guardian. 2021-06-30. Retrieved 2021-10-17.
    • "How a powerful US lobby group helps big oil to block climate action". the Guardian. 2021-07-19. Retrieved 2021-10-14.
    • "After 40 years of climate denial, American Petroleum Institute (API) offers... more denial!". Red, Green, and Blue. 2021-01-15. Retrieved 2021-10-14.
    • Brown, Alleen (2021-01-16). "Oil Industry Reconsiders Donations to Election Deniers — but Has Its Own Big Lie". The Intercept. Retrieved 2021-10-14.
  6. ^ "Industry Mission". www.api.org. Retrieved 2020-07-01.
  7. ^ a b "About API". American Petroleum Institute. Retrieved March 29, 2012.
  8. ^ "API President and CEO". www.api.org. Retrieved August 2, 2019.
  9. ^ a b Benjamin Franta, "On its 100th birthday in 1959, Edward Teller warned the oil industry about global warming", The Guardian, 1 January 2018 (page visited on 2 January 2018).
  10. ^ "Home - SOME". mycommittees.api.org. Retrieved 2020-04-07.
  11. ^ "Committee Information". www.api.org. Retrieved 2016-01-24.
  12. ^ "Engine Oil Guide" (PDF). American Petroleum Institute. March 2010.
  13. ^ API RP 505 Recommended Practice for Classification of Locations for Electrical Installation at Petroleum Facilities Classified as Class I, Zone 0, Zone 1 and Zone 2 (2002).
  14. ^ API RP 500 Recommended Practice for Classification of Locations for electrical Installation at Petroleum Facilities Classified as Class I, Division 1 and Division 2.
  15. ^ API Unit, Schlumberger Oilfield Glossary, accessed 11 Nov. 2015.
  16. ^ "2009 Awards". Education World. Retrieved 16 Jan 2021.
  17. ^ "Lobbying: American Petroleum Institute". OpenSecrets.
  18. ^ "Second Quarter Lobbying Form, 2009, Secretary of the Senate". Retrieved March 29, 2012.
  19. ^ Sirota, David (5 April 2016). "Oil Companies Donated to Clinton Foundation While Lobbying State Department". International Business Times. Retrieved 14 April 2016.
  20. ^ Stone, Daniel (August 20, 2009). "The Browning of Grassroots". Newsweek. Retrieved March 29, 2012.
  21. ^ Krauss, Clifford; Mouawad, Jad (August 18, 2009). "Oil Companies Back Public Protests of Greenhouse Gas Bill". The New York Times. Retrieved August 2, 2019.
  22. ^ McNulty, Sheila (August 20, 2009). "The big oil backlash?". Financial Times. Retrieved March 29, 2012.
  23. ^ Schwartz, Ariel (August 21, 2009). "American Petroleum Institute Demonstrates How to Screw Up a Grassroots Event". Fast Company. Retrieved March 29, 2012.
  24. ^ Talley, Ian (August 11, 2009). "Lobby Groups to Use Town Hall Tactics to Oppose Climate Bill". The Wall Street Journal.
  25. ^ Harkinson, Josh (December 4, 2009). "The Dirty Dozen of Climate Change Denial". Mother Jones. Retrieved August 17, 2015. Here's a guide to the dozen loudest components of the climate disinformation machine...Meet the 12 loudest members of the chorus claiming that global warming is a joke and that CO2 emissions are actually good for you.
  26. ^ DaMelle, Brendan (4 January 2012). "API's New 'Vote 4 Energy' Ad Campaign Is Thinly Veiled Election Year Bullying". desmogblog.com. DeSmog Blog. Retrieved 22 January 2016.
  27. ^ Horn, Steve (29 December 2015). "Big Oil Argued for U.S. Crude Exports to Fend Off Iran, But First Exporter Vitol Group Also Exported Iran's Oil". DeSmog Blog. Retrieved 22 January 2016.
  28. ^ Readfearn, Graham (27 February 2015). "What happened to the lobbyists who tried to reshape the US view of climate change?". The Guardian. Retrieved 22 January 2016.
  29. ^ Dunlap, Riley; Jacques, Peter (2013). "Climate Change Denial Books and Conservative Think Tanks: Exploring the Connection". American Behavioral Scientist. 57 (6): 699–731. doi:10.1177/0002764213477096. PMC 3787818. PMID 24098056.
  30. ^ Cook, John (2014). "Reply to 'Quantifying the consensus on anthropogenic global warming in the scientific literature: A re-analysis'". Energy Policy. 73: 706–708. doi:10.1016/j.enpol.2014.06.002.
  31. ^ Johnson, Brad (August 15, 2011). "Rick Perry's First Stop In New Hampshire Is Funded By Big Oil". ThinkProgress. Archived from the original on 2012-03-30. Retrieved March 29, 2012.
  32. ^ "Rick Perry stumps Manchester - next stop Iowa"[permanent dead link], New Hampshire Public Radio, 14 August 2011.
  33. ^ Puko, Timothy; Mann, Ted (April 22, 2022). "Oil Group Drafts Proposal For Carbon Tax on Fossil Fuels" (PDF). The Wall Street Journal. p. A-4. Retrieved April 22, 2022.
  34. ^ "Revealed: ExxonMobil's lobbying war on climate change legislation". Channel 4 News. 2021-06-30. Retrieved 2022-05-02.
  35. ^ Gillis, Justin; Schwartz, John (2015-02-21). "Deeper Ties to Corporate Cash for Doubtful Climate Researcher". The New York Times. ISSN 0362-4331. Retrieved 2022-03-13.
  36. ^ "Work of prominent climate change denier was funded by energy industry". the Guardian. 2015-02-21. Retrieved 2022-03-13.
  37. ^ a b Hasemyer, David (2015-02-21). "Documents Reveal Fossil Fuel Fingerprints on Contrarian Climate Research". Inside Climate News. Retrieved 2022-03-13.
  38. ^ "API Statistics Web page".

External linksEdit

  Media related to American Petroleum Institute at Wikimedia Commons

  • Official website